SGX presses for tighter corporate governance measures

Singapore Exchange Ltd is inviting public feedback on proposed new measures to strengthen the practices of corporate governance as well as rule amendments to foster greater disclosure.

The proposals stem from SGX’s annual rule reviews that are undertaken to keep abreast of the challenges and developments of the industry. It is also part of the on-going efforts to enhance the quality of the marketplace.

Proposed amendments in the consult include firstly, strengthening corporate governance standards and internal controls system and risk management framework by disclosing the Audit Committee Audit Committee’s assessments the annual report.

The Exchange also proposes to introduce the role of a governance adviser to help newly listed issuers make certain that they have the framework and practices of good corporate governance as befits a listed company.

The role of board directors, key executive officers and auditors will also undergo various changes, for example, the Exchange’s right to take action against key executive officers or directors will be codified, such as public censure or objecting to their appointments, if they have refused to cooperate with the regulators or caused a breach of rules, laws and regulations.

Market participants and members of the public are encouraged to participate in this public consultation. The consultation paper, which sets out the proposed amendments to the listing rules, will be available from 9 December 2009 to 15 January 2010. All feedback and suggestions for the proposed changes must reach the SGX by to 15 January 2010 either via email, courier or fax.