Bursa Malaysia seeks feedback on move to improve board quality, independence

KUALA LUMPUR (Bernama) -- Bursa Malaysia Bhd has issued a consultation paper seeking public feedback on the proposed amendments to stock exchange listing requirements in relation to the appointment of directors and their corporate independence.

"Good governance, leadership continuity, and board independence continue to be key focus areas among stakeholders and regulators,” the stock exchange regulator said in a statement today.

"The COVID-19 pandemic also highlighted the need for boards to continuously assess composition as well as structure to ensure that they are fit for purpose in the new normal. In this light, the emphasis is now centred on director tenure, quality and integrity since these are essential to board effectiveness. "

Hence, the exchange said it has proposed two "key enhancements” to the listing requirements.

The first is to encourage board renewal and enhance independence by limiting the tenure of an independent director to not more than a cumulative period of 12 years from the date of his or her first appointment.

"The second one is improving board quality and promoting greater transparency by requiring a listed issuer to have and publish on its website, a fit and proper policy for the appointment and re-appointment of directors of the listed issuer and its subsidiaries.

"To aid listed issuers, Bursa Malaysia will also be providing guidance, illustrations and better practices relating to the fit and proper policy," it said.

Bursa said the consultation paper on the proposed amendments to the listing requirements is available at https://www.bursamalaysia.com/regulation/public_consultation.

The exchange welcomes views from the public. Interested parties are invited to submit comments and feedback to Bursa Malaysia by Sept 1, 2021.