Speaking at the launch ceremony, Chief Executive Officer of Bursa Malaysia Berhad, Yusli Mohammed Yusoff said that the launch of Best Practices marks another milestone in the development of corporate governance best practices for Malaysian companies and market.
"We are setting guidelines aimed at assisting companies to move beyond minimal compliance into exemplary levels of disclosure. We hope to cultivate and instil the spirit of disclosure and best practices as voluntary behaviour.
"The Best Practices serves as a guide for listed companies to formulate their own corporate disclosure policies and procedures, they are not meant to be prescriptive. Companies must tailor the principles behind the Best Practices to suit their specific circumstances.
Yusli said that companies have only to gain in adopting high standards and best practices in corporate disclosure.
"When the board and management is in constant review of corporate governance practices, boards and management will be forced to reinvent systems of corporate monitoring and accountability, reassess investors' needs and interest and enhance shareholder value.
"Higher standards of disclosure also encourages higher accountability on the part of the investor. Investors will need to take larger responsibilities in making informed investment decisions, using the material and timely information provided. This will encourage a culture of investing based on fundamentals.
Yusli explained that best practices in corporate disclosure raises the profile of the company in the spirit of investor relations where timely and material disclosure is the essence of investor relations.
"Best practices in corporate disclosure will promote investor or shareholder activism. Greater shareholder activism will generate a positive system of check and balance between the organisation and its shareholders in delivering on shareholder value and in further encouraging transparency and business ethics.
"Ownership or shareholder based governance is the best approach in keeping a company, its businesses and operations in check, in ensuring that the board and management do the right things," Yusli said.
Yusli thanked members of the special Task Force on Corporate Disclosure Best Practices, led by Datuk Oh Chong Peng and MAICSA as the Secretariat, for their contribution and effort in preparing and successfully completing the Best Practices in Corporate Disclosure.
"I advise companies to take up this challenge of utilising the guidelines in setting exemplary best practices and disclosure.
"I would like to remind companies that corporate governance best practices determines investor interest and investability in the market," Yusli said.
