(Bloomberg) -- In an attempt to boost investor confidence in Singapore's capital markets and support innovation, a council formed by the city-state's central bank released a consultation paper Tuesday revising its recommendations for corporate governance.
The Code of Corporate Governance -- which was last reviewed in 2012 -- is focused on strengthening efficiencies at the board level of corporations by enhancing diversity and encouraging board renewals, according to a statement released by the Corporate Governance Council. It will also boost Singapore's appeal as an international investment destination.
Read more: Singapore Wants to Double Women on Company Boards in 3 Years
"The streamlined code is shorter and concise," said Corporate Governance Council's chairman Chew Choon Seng, who was previously chairperson for Singapore Exchange Ltd. It seeks to encourage companies to move away from a compliance mindset and adopt thoughtful corporate governance practices, he added.
The council, which was formed by the Monetary Authority of Singapore in February 2017, has asked interested parties to submit their feedback by March 15 and has also recommended the establishment of an industry-led advisory committee to oversee corporate governance. The changes are expected to be introduced within the second half of this year.
Some of the proposed changes include:
- Strengthen director independence by lowering shareholder threshold to 5% from 10%
- Enhance board composition and diversity by disclosing corporate policy and progress made on that front
- Have transparent remuneration practices
- Publicly-listed companies should consider and balance needs and interests of all stakeholders
To contact the reporter on this story: Abhishek Vishnoi in Singapore at avishnoi4@bloomberg.net.
To contact the editors responsible for this story: Divya Balji at dbalji1@bloomberg.net, Sungwoo Park
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