Singapore Exchange Ltd Strengthening Corporate Governance Mechanism

Effective risk management through continued strengthening of corporate governance mechanism is badly needed in the current economic recession where corporations are experiencing liquidity crunch and shrinking profits. Recently, Singapore Exchange Ltd issued a consultation paper on proposed new measures and rule amendments to strengthen corporate governance practices. Salient proposed changes are:

  • Disclosure of Audit Committee’s assessments on adequacy of internal control and risk management policies and systems in the annual report.
  • Introduction of the role of a Governance Advisor to help newly listed issuers make certain that they have the framework and practices of good corporate governance as befits a listed company.
  • Improvements in the role of board of directors, key executive officers and auditors.
  • Restriction on Share Transfers during trading suspension.
  • Disclosure of pledging arrangements.

Published Date: December 21, 2009