Malaysia | Bursa Malaysia Issues Updated Corporate Governance Guide (4th Edition)

On 15 December 2021, Bursa Malaysia Berhad (“the Exchange”) issued an updated Corporate Governance Guide (“Updated CG Guide”).

The CG Guide adopts a thematic approach to provide PLCs with a focused view of the Malaysian Code on Corporate Governance (“MCCG”), beginning with the board and its responsibilities, addressing audit and risk management matters, and then concluding with corporate reporting and relationship management with stakeholders.

The Updated CG Guide includes Updated Practices for these areas as referred to in the MCCG: 

• Write-up to Practice 5.3 and Step Up 5.4 of the MCCG:

Tenure limit of independent directors.

• Write-up to Practice 5.5 of the MCCG: Appointment of board directors and senior management based on, objective criteria, merit and diversity.
• Write-up to Practices 5.6 and 5.7 of the MCCG: sourcing of directors and senior management, and disclosure on the appointment and reappointment of directors.
• Write-up to Practices 9.2 and 9.3 of the MCCG: new cooling-off period and policies and procedures to assess suitability of the external auditor.
• Write-up to Practices 13.3, 13.4, and 13.5 of the MCCG: The increased deployment of technology in general meetings and the democratisation of shareholders during AGMs.

More information on the Updated Practices in the Updated CG Guide may be obtained from the Executive Summary portion, specifically at page 9. which is available here.

The media release made by the Exchange may be accessed here. The full Updated CG Guide, titled “Corporate Governance Guide (4^th Edition)” may be accessed here. 

Bursa Malaysia Securities Berhad Becomes One-Stop Centre for ACE Market IPOs And Prospectus Registration

In a joint statement, the Securities Commission Malaysia (“SC”) and Bursa Securities Malaysia Berhad (the “Exchange”) announced on 20 December 2021 that effective 1 January 2022, the Exchange will be the sole approving authority for Initial Public Offerings (“IPOs”) on the ACE Market, assuming the ACE Market prospectus review and registration functions from the SC.

Under the new regulatory framework, the Exchange will become a one-stop centre for all ACE Market IPO approvals, including the registration of abridged prospectus for the purpose of secondary fund-raising activities via rights issues by corporations listed on the ACE Market.

Nevertheless, the SC will continue to register ACE Market prospectuses that have been submitted to the SC prior to 1 January 2022.

In addition, the Exchange enhanced the ACE Market Listing Requirements as well as the principal adviser framework under the Main Market Listing Requirements.

The joint statement by the Exchange and the SC can be found here.