Executive Chairman of KLSE Dato' Mohd Azlan Hashim said annually, KLSE holds industry dialogues with over 25 industry associations and standards bodies and where appropriate, recommendations are considered in the formulation of policies and regulations.
"This effort ensures that regulators are at the front line with industry and market practitioners.
"At the international level, this effort is further expanded with the active involvement of KLSE in discussions with foreign fund managers in addressing concerns on Corporate Governance practices and perceptions on the extent of compliance of Malaysian public listed companies," he said.
As member of the board of the World Federation of Exchanges and president of the Commonwealth Association of Corporate Governance, KLSE is actively represented and has gained substantially in both understanding issues and recommendations, in benchmarking the Malaysian capital market as well as promoting Malaysia and the KLSE internationally.
"The World Federation of Exchanges has over 56 exchange members operating in diverse jurisdictions worldwide, representing 97% of the world's market capitalisation whilst the Commonwealth Association of Corporate Governance conducts in-country programmes for directors in over 35 commonwealth countries," he said.
Mohd Azlan was speaking at the launch of 'Corporate Governance - A Handbook for Malaysian Public Listed Companies Directors'. The handbook was developed by Ernst & Young and BP Malaysia.
Mohd Azlan said there are over 70 provisions in the KLSE Listing Requirements relating to directors, governing key areas including:-
- duties and responsibilities
- obligations and powers
- undertaking, confirmations & Statutory declarations
- disclosure
- recurrent related party transactions
- number of directors, and
- independent directors
Additionally, Practice Note 5/2001 on training and continuing education for directors, and Practice Note 6/2001 on independent directors have been issued.
Mohd Azlan said to ensure completeness and comprehensiveness in compliance - not only to the letter of the requirements but to the spirit of the requirements - provisions for directors have also been developed to prompt compliance to the overall principles contained in the Malaysian Code on Corporate Governance.
"Through a balance of regulations that deter the wrong, without impeding the beneficial, there will not be any let up in closing gaps and plugging loopholes.
"Regulations and requirements will continue to be fine-tuned where appropriate, expanded where necessary whilst practice notes will be issued to clarify the requirements and facilitate application," Mohd Azlan said.In congratulating Ernst & Young and BP Malaysia on the launching of the handbook, Mohd Azlan said directors of Malaysian public listed companies can be considered fortunate to be able to have, in one volume, the best practice of Corporate Governance.
"This handbook is like a map - for it contains the right directions, it is a guidebook - for it faciltates application and practice. This handbook is even like a passport - for it intends to take directors to places of proper conduct and best practice in corporate governance," he said.
