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MAS sets up council to review Code of Corporate Governance
THE Monetary Authority of Singapore has formed a Corporate Governance Council to review the Code of Corporate Governance. It will be chaired by former chairman of the Singapore Exchange (SGX), Chew Choon Seng.
The CG Code was last reviewed in 2012, when changes were introduced to strengthen board independence and enhance remuneration practices and disclosures, said MAS in a statement issued on Monday.
"Corporate governance practices globally have continued to evolve since then. MAS has been monitoring these market developments and industry feedback on how the CG Code can be improved," said MAS.
"A review of the CG Code and practices is thus timely to ensure that they continue to support sustained corporate performance and maintain investor confidence in our capital markets."
The council will consider how the "comply-or-explain" regime under the CG Code can be made more effective. This includes improving the quality of companies' disclosure of their CG practices and explanations for deviations from the CG Code.
The council, which will also comprise representatives from MAS, Accounting and Corporate Regulatory Authority (Acra) and SGX, will also propose mechanisms to monitor the progress made by Singapore-listed companies in strengthening their corporate governance practices.
The council will consult the public on its recommendations, including changes to the CG Code, before finalising them.