Singapore’s corporate governance council, which was established by the Monetary Authority of Singapore in February 2017, is consulting on a revised corporate governance code for the country which it is hoped will strengthen investor confidence in its capital markets.

The council said a well-rounded board with the appropriate mix of skills, experience and independence is critical to good corporate governance. Therefore the code revisions aim to reinforce board competencies through encouraging board renewal, strengthening director independence and enhancing board diversity.

Other proposed code revisions include greater emphasis on disclosures of the relationship between remuneration and value creation and the need for companies to consider and balance the needs of all stakeholders, the council said.

The council is also seeking to clarify the intent of the comply-or-explain regime and the expectations on listed companies’ corporate governance disclosures. The council has also recommended the establishment of an industry-led Corporate Governance Advisory Committee.

Mr Chew Choon Seng, council chairman, said: “The package of recommendations takes into account the changing business environment and the diverse views of various stakeholder groups that the Council has engaged. The streamlined code is shorter and concise. It seeks to encourage companies to move away from a compliance mindset and adopt thoughtful corporate governance practices that will best support their long-term business objectives.”

The Singapore Exchange (SGX) has proposed amendments to the SGX listing rules as a result of the code revisions and feedback is also being sought on these. The deadline for responses on the recommendations is 15 March 2018.

Denmark updates its Corporate Governance Recommendations

Denmark’s corporate governance committee published updated recommendations for Danish listed companies in December.

Changes included the requirement for disclosure of the remuneration of the executive board and the board of directors in a remuneration report. This report should include the relationship between long-term value creation of the business and the rewards the directors receive.

There is also a recommendation that board evaluations are carried out with the help of external consultants at least once every three years. The evaluation and how it was carried out must be published on the company’s website, in the management’s report, in the annual report and reported on at the annual general meeting.

A consultation was held from July last year and meetings were also held with stakeholders before the final recommendations were produced. These became part of the disclosure requirements for Danish listed companies from 1st January 2018.

Nigeria looks set to review suspended National Code of Corporate Governance

Media reports from Nigeria this week have stated that a technical committee has been set up to review the suspended national code of corporate governance.

The Financial Council Reporting Council of Nigeria announced the suspension of the newly adopted code of governance in January last year.

Last Updated: 19 January 2018