Rewarding good governance
A balance between regulatory 'sticks' and 'carrots' or incentives can encourage firms to practise good governance
IS there scope here to reward firms that practise good governance?
In other markets, regulators have recognised that the traditional approach of deterrence through penalties represents only one side of the coin and is perhaps overly focused on the negatives without regard for positives.
Consider for example, that Bursa Malaysia last month announced that it is implementing a "Green Lane Policy" for its top 30 listed companies based on their corporate governance conduct and disclosure practices.
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