Hong Kong Exchanges and Clearing Limited (HKEX) published a Consultation Paper outlining the proposed enhancements to the Corporate Governance Code across five key areas:
1. Board effectiveness improvements
2. Strengthening board independence
3. Promoting diversity
4. Enhancing risk management and internal controls
5. Better capital management
One of the objectives behind these proposed amendments is to bolster robust corporate governance practices. These changes are slated to impact corporate governance reports for financial years beginning on or after 1 January 2025. Additionally, there will be a three-year transition period specifically for the recommendations concerning overboarding and Long Serving INEDs.
Please read the Consultation Paper HERE and provide any comments on or before Friday 19 July 2024 with your membership number and contact details to research@hkcgi.org.hk. Depending on views received by the Institute, if any, the Institute may consider making a submission.