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Singapore Exchange Ltd (SGX) will be launching a new announcement template on SGXNET for notice of resignation of directors and key officers with effect from 1 October 2007. This will be applicable to all listed companies in Singapore. The new template is the first practical measure to be implemented as a result of the recent study commissioned by the Monetary Authority of Singapore (MAS) and SGX to review the state of corporate governance practices of SGX-listed companies.
One of the findings of the study highlighted the importance of listed companies providing detailed information on the resignations of their directors and key officers to investors and the marketplace. The new easy-to-use announcement template will facilitate listed companies disclosing in detail the reasons for the resignations. The resignation of one director or a succession of them, particularly of independent directors, may indicate something untoward in terms of corporate governance or commercial developments. Investors should be made aware of these changes.
Associate Professor Mak Yuen Teen, Director of the Corporate Governance and Financial Reporting Centre at the National University of Singapore, who carried out the study, is of the view that more clearly highlighting announcements of director resignations is also significant. The new resignation template, being a separate announcement category, does just that. Investors will have easy access to information on changes in leadership of listed companies. This, in turn, will assist them to make more informed decisions.
Ms Yeo Lian Sim, Senior Executive Vice President and Head of Risk Management and Regulation, SGX, said, “SGX will continue to look for ways to improve transparency and the level of disclosure among listed companies. By raising the standards of corporate governance practice, we will enhance Singapore’s reputation as an international financial centre and a preferred listing gateway for growth companies in Asia and around the world.”
