The Stock Exchange of Hong Kong’s proposals covered a range of issues including establishing a corporate culture; directors’ independence and attendance at general meetings; board diversity; communications with shareholders; and linkages with environmental, social and governance (ESG) reporting, including the timing of publication of ESG reports. The Institute made a submission, which supports the general direction of the proposals and most of the specific measures put forward in the consultation paper. We also welcome the improvements in clarity. At the same time, the submission also expresses reservations about a few specific proposals.
In addition, the recommended best practice on board evaluations could be considered for upgrading to a provision in the Corporate Governance Code. Regular evaluations would help to underpin various other matters covered in the paper, and to reassure stakeholders that the board is committed to continuous improvement in its performance.
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