Stock Exchange Conclusions on Corporate Governance Code

By Rossana Chu:

The Stock Exchange of Hong Kong Limited (“Stock Exchange”) published in December 2021 the conclusions^[1] to its consultation paper of April 2021 titled “Review of Corporate Governance Code and Related Listing Rules”^[2], with an aim to enhance the corporate governance practices and reporting by listed companies. The Stock Exchange adopts most of the proposals outlined in the consultation paper, with certain modifications or clarifications, in the respect of (i) culture, (ii) board independence and refreshment, (iii) diversity, (iv) nomination committee, (v) communications with shareholders, (vi) certain enhancements relating to directors, (vii) linkage between corporate governance and ESG (environment, social and governance), (viii) timely disclosure of ESG reports and (ix) re-arrangement of the Corporate Governance Code.

In this article, we will focus on three controversial areas as the Stock Exchange received highest rates of opposing responses (up to 36%) in its Consultation Conclusion^[1]. These areas are board independence, refreshment and gender diversity.  READ FULL ARTICLE

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Note: This material has been prepared for general information purposes only and is not intended to be relied upon as professional advice for any cases. Should you need further information or legal advice, please contact us.

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[1] https://www.hkex.com.hk/-/media/HKEX-Market/News/Market-Consultations/2016-Present/April-2021-Review-of-CG-Code-and-LR/Conclusions-(Dec-2021)/cp202104cc.pdf?la=en

[2] https://www.hkex.com.hk/-/media/HKEX-Market/News/Market-Consultations/2016-Present/April-2021-Review-of-CG-Code-and-LR/Consultation-Paper/cp202104.pdf