Malaysian Code Of Corporate Governance 2012

At least half of the board comprises of independent directors.

Malaysian code of corporate governance 2012. Who is the malaysian code on corporate governance 2012 mccg 2012 targeted at. It sets out eight broad principles and 26 specific recommendations on structures and processes which companies should adopt in making good corporate governance an integral part of their business dealings and culture. The mccg 2012 consistent with the blueprint retains the definition of corporate governance as set out in the high level finance committee report 1999. Code of corporate governance 2012 board matters page 7 of 33 chairman and chief executive officer principle.

The cg guide provides practical guidance to listed issuers to improve cg practices and reporting in line with the principles and requirements contained in the malaysian code on corporate governance mccg and enhanced cg disclosure requirements in the listing requirements. Certain practices are applicable only to large companies. Malaysian code on corporate governance 2012 mccg 2012 lists down wide principles of good governance and detailed recommendations on structures and processes as well as commentaries to aid understanding by giving out guidelines and examples. 3 there should be a clear division of responsibilities between the leadership of the board and the executives responsible for managing the company s business.

Companies on the ftse bursa malaysia top 100 index. The mccg 2012 is specifically targeted at companies listed on bursa malaysia. The mccg 2012 supersedes the 2007 code. Deliverable of the blueprint.

The board of the director the board will go on to reexamine the bing corporate administration patterns and policies thought out of the group. No one individual should represent a considerable concentration of power. The policy statement clearly stated. All companies are however encouraged to adopt the principles and recommendations of mccg 2012 and make good corporate governance an integral part of their business dealings and culture.

The board must comprise a majority of independent directors where the chairman of the board is not an independent director. The malaysian code on corporate governance 2012 mccg 2012 focuses on strengthening board structure and composition as well as recognizing the role of directors as active and responsible fiduciaries. Malaysian code on corporate governance 3 2 6 as listed companies are not a homogeneous group it is necessary to provide flexibility and proportionality in the application of certain best practices. For large companies the board comprises.

The malaysian code on corporate governance 2012. The malaysian code on corporate governance key. It also sets out the new approach of care comprehend apply and report introduced in the mccg. The malaysian code on corporate governance 2012 mccg 2012 upholds 8 principles and together with a number of recommendations and best practices the new code seeks to foster greater corporate governance.