Monetary Authority of Singapore

Media Release on Final Recommendations on the Proposed Revisions to the Code of Corporate Governance

Press Release   •   Nov 22, 2011 16:22 SGT

The Corporate Governance Council (“Council”) has submitted its recommendations on proposed revisions to the Code of Corporate Governance (“Code”) to the Monetary Authority of Singapore for consideration.

The Council, chaired by Mr Chan Heng Loon Alan, Chief Executive Officer of Singapore Press Holdings Limited, was established in February 2010 to promote a high standard of corporate governance among listed companies in Singapore. Over the last 21 months, the Council has carried out a comprehensive review of the Code, taking into account corporate governance developments in other leading jurisdictions and feedback received from stakeholders.

Along with the submission of its recommendations, the Council has today also released a response paper to feedback received from the public consultation conducted between June and July 2011. A total of 75 responses were received. Most respondents were supportive of the Council’s proposed revisions. The response paper sets out the feedback received on the key proposals, the Council’s response to the feedback, and the final proposals.

Having carefully considered the feedback received, the Council has finalised its recommendations on the revised Code. The final proposals are made in areas of director independence, board composition, director training, multiple directorships, alternate directors, remuneration practices and disclosures, risk management, as well as shareholder rights and roles. In addition, the Council has recommended that a transition period be introduced to facilitate compliance with the revised Code.

Mr Chan said, “The Council would like to thank all respondents for their feedback on the proposed revisions to the Code. Strong corporate governance is the cornerstone of well-functioning capital markets. Upholding high corporate governance standards requires the continuous efforts of all stakeholders including the authorities, industry, and shareholders. In this respect, the Council is encouraged by the level of interest shown by various stakeholders, as evident from the amount of feedback that the Council received during the consultation.”

Mr Chan added, “While respondents were generally supportive of the Council’s recommendations, there were divided views on some of the recommendations. The Council has carefully weighed the different perspectives put forward, and revised its recommendations in some of the areas. We believe that the final set of recommendations, incorporating industry feedback, achieves the Council’s objective of presenting a balanced package that not only serves to enhance Singapore’s corporate governance standards, but is also pragmatic and workable in practice.”

Please refer to Annex to view the Council’s recommendations to the MAS. (Click here to view the response to feedback received from the public consultation)(Click here to view the proposed revised Code of Corporate Governance)

The Secretariat, Corporate Governance Council
c/o Monetary Authority of Singapore