PN15/2003, to come into effect on Tuesday, 1 July 2003, relates to paragraph 15.09 of the Listing Requirements which states that directors must attend training programmes prescribed by KLSE. Training of directors in accordance with paragraph 15.09 of the Listing Requirements commenced in April 2001 with the introduction of the Mandatory Accreditation Programme (MAP) for directors. To-date over 5,300 directors have attended the MAP.
The MAP was a "foundation" programme aimed at providing directors with a general overview of the regulatory framework of the capital market and duties and liabilities associated with the office of a director. The CEP, on the other hand, is intended to enable directors of listed companies to keep updated and abreast of developments, particularly regulatory developments. Training of directors is essential to enhance directors' knowledge and professionalism and thus, enable them to discharge their duties more effectively.
Deputy President of Exchange Operations Md Nor Ahmad said PN15/2003 comprehensively covers the requirements of KLSE relating to the continuing education for directors of public listed companies.
"Having participated in the MAP, directors of public listed companies can continue to be updated through the CEP on various relevant areas, including regulatory developments and corporate governance.
"The activities of the CEP will be accredited. These accredited programmes may be conducted by various organisations. Directors who attend these accredited programmes will be awarded CEP points. Under PN15/2003 they would have to accumulate a certain minimum number of CEP points. However, we have developed a framework that provides flexibility to the directors, both in terms of how they can accumulate these points, and when. They can accumulate points by not only attending courses, but also lecturing or writing articles, so long as these activities are accredited. They can plan their activities accordingly to suit their own schedule and needs.
"In this way, directors will have a continuing opportunity to improve their capability and effectiveness in meeting the expectations of shareholders, investors and regulators for enhancements in corporate best practices and standards of corporate governance," he said.
PN15/2003 sets out the details of the CEP framework as follows:
- obligation of directors of public listed companies to attend CEP minimum CEP points a director has to accumulate within a calendar year by attending CEP accredited activities
- what are considered CEP activities and CEP points awarded to each type of activity supporting documents that have to be kept by a director to evidence his compliance with CEP requirements topics for CEP activities
KLSE has established a CEP Accreditation Committee primarily responsible for the evaluation and accreditation of appropriate activities comprising representatives from industry participants. The Committee will ensure that the activity is relevant to the office of a director before accrediting it.
The members of the CEP Accreditation Committee are as follows:-
- En. Md Nor Ahmad (Chairman), Deputy President, Exchange Operations, KLSE
- Y. Bhg. Dato' Megat Najmudin Megat Khas, President of the Malaysian Institute of Corporate Governance
- En. Abdul Rauf Ramli, Vice President of the Association of Stockbroking Companies Malaysia
- Mr Paul W. Chan, President of the Malaysian Association of The Institute of Chartered Secretaries and Administrators
- Dr. Nordin Mohd. Zain, Technical Director of the Malaysian Accounting Standards Board
- Ms. Ho Foong Moi, Executive Director of the Malaysian Institute of Accountants
- Ms. Pauline Wong, Executive Director of the Association of Merchant Banks in Malaysia
- En. Mohamad Ariff Md. Yusof, Senior Partner, Messrs Cheang & Ariff
- En. Abdul Manap Said, Adjunct Professor, Department of Accounting, Faculty of Economics & Management Sciences, International Islamic University Malaysia
Details on accredited activities under the CEP can be obtained from the CEP Programme Calendar maintained by KLSE at its web-site, www.klse.com.my. The CEP Programme Calendar will contain, relevant information on accredited programmes, CEP Points awarded for each programme, the time, date and venue for each of the accredited programmes and details of the respective course providers.
