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Mr Cheng was speaking at a news conference today (Wednesday, 18 September) to announce a two half-day continuing professional development forum for directors of listed companies to be held next month.
"Investors have become more knowledgeable about investment, and their expectations of protection of their rights, transparency of board practices and disclosure of information have risen," Mr Cheng said.
"The board of directors is responsible for corporate governance and determines the prosperity and integrity of the company. It is vital the directors approach their responsibilities with professionalism and up-to-date knowledge and skills," he said.
Alec Tsui, Chairman of Hong Kong Securities Institute, said good corporate governance helped to improve the company's image and generate greater confidence of shareholders, regulators, and the public. According to a recent McKinsey survey of around 200 international institutional investors, 80 per cent of respondents said that when all other factors were equal, they would be willing to pay a premium for a well-governed company.
Ashley Alder, Executive Director, Corporate Finance, Securities and Futures Commission, said good corporate governance was now a necessity. "The SFC supports all initiatives which enable directors to appreciate the tangible benefits of good governance and which give guidance on efficient pragmatic and workable measures that can be adopted in companies to maximise the effectiveness of new governance practices."
Lawrence Fok, Deputy Chief Operating Officer of Hong Kong Exchanges and Clearing Limited, said corporate governance was not merely a matter of regulation. "It also involves management's recognition of responsibility and an intellectual commitment to the principles of transparency and accountability.
"We all have a part to play in maintaining and strengthening Hong Kong's status as a leading international financial centre. Good corporate governance is a vital element in our future success," Mr Fok said.
Next month's forum is organised by the Hong Kong Institute of Directors and Hong Kong Securities Institute, and sponsored by the Securities and Futures Commission and Hong Kong Exchanges and Clearing Limited. It is the first in a series of forums for directors of listed companies, designed to help them maintain their standards in a changing business environment.
…/2 The forum comprises two modules. The first module will focus on the legal and regulatory requirements of listed companies. The fiduciary role and responsibilities of directors of listed companies will be covered in the second module.
For further details of the forum, please refer to the programme or the website of Hong Kong Securities Institute at www.hksi.org.
