The Stock Exchange Of Hong Kong Announces The Formation Of Its Fifth Working Group On Corporate Governance.

The Exchange announces the formation of its Fifth Working Group on Corporate Governance since 1996. The current Working Group comprises officials from the Exchange and the Securities and Futures Commission and also various market practitioners in Hong Kong. The composition of the Working Group represents a cross-section of the major constituencies which can contribute to current issues of corporate governance in Hong Kong. The convenor of the Working Group is Mr. Tad Beczak who is also the Chairman of the Listing Committee of the Exchange. The terms of reference of the Working Group are to advise and provide guidance to the Exchange on major issues and the latest development relating to corporate governance with the ultimate objective of improving the governance of listed companies in Hong Kong, while recognising the realities of business practices in Hong Kong. The Working Group will explore, examine and analyse various corporate governance issues that may be of particular importance to the current Hong Kong securities market, including, the role played by independent non-executive directors in listed companies and connected party transactions. The Working Group will endeavour to make more progress in enhancing and promoting good corporate governance practice in Hong Kong.