HKEx has just issued a consultation paper on corporate governance. The principal aim of the amendments is to encourage better accountability of issuers and directors, and also to bring practice in Hong Kong in line with that available in other international markets.
In summary, the review includes the following measures:
– improving transparency by bolstering requirements for disclosure and communication with shareholders;
– enhancing the quality of directors and company secretaries through training;
– requiring greater involvement in issuers’ board committees by independent, non-executive directors;
-recognizing company secretaries’ contribution to corporate governance and defining their role and function; and
– placing emphasis on the leadership role of the chairman of the board in corporate governance matters.
Responses are due by 18 March 2011.