KUALA LUMPUR: The Securities Commission (SC) Malaysia has invited public feedback on the proposed draft for the Malaysian Code on Corporate Governance (MCCG) 2016.
The first MCCG was introduced in 2000 and was revised twice in 2007 and 2012 to ensure that its principles and recommendations were aligned with business practices and market development.
The SC said in recognising the need for regular enhancement to corporate governance practices, the MCCG 2016 adopted a different approach from previous Codes.
"The new approach aims to encourage progression and emphasises on conduct and outcomes from corporate governance practices," said the SC in a statement.
The MCCG 2016 streams corporate governance practices into two categories namely, Core and Core+.
Companies are expected to disclose their adherence to the Core practices on an 'apply or explain an alternative' basis, which encourages greater thought process in undertaking the practices and in making disclosures.
"While Core+ practices are voluntary, companies are strongly encouraged to adopt them and disclose in the annual report how these practices are being undertaken or implemented," it added.
Interested parties and the public are invited to submit their comments and feedback online at www.sc.com.my/mccg2016 before the closing date on June 8, 2016. - Bernama
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