SINGAPORE (Jan 22): The Corporate Governance Council is calling for public feedback on a simplified set of recommendations on how listed companies here can practise good corporate governance. The CGC, which was formed last February, wants the Code of Corporate Governance to be more user-friendly for company boards to adhere to.

For one, the total word count of the code will be halved and the number of principles and provisions will see a net reduction. “Given the rapid pace of change in today’s world of business and markets, the Monetary Authority of Singapore (MAS) deemed it timely to take stock of how the code has fared in practice and to evaluate developments since then in corporate governance in other comparable jurisdictions,” says CGC chairman Chew Choon Seng. The former chairman of Singapore Exchange and former CEO of Singapore Airlines was speaking on Jan 16 at the ACRA-SGX-SID Audit Committee Seminar jointly organised by the Accounting and Corporate Regulatory Authority, SGX and the Singapore Institute of Directors.

Norms and rules of behaviour for Singapore-listed companies fall under three tiers. SGX’s Listing Rules, with its mandatory and prescriptive nature, sit at the top. These are followed by the Code of Corporate Governance, a set of recommendations rather than obligations. Companies that do not comply with the code must explain their reasons. Last but not least, a Practice Guidance compiled by ACRA provides guidelines for specific situations.

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