Singapore company registration specialists Rikvin anticipates that the revised code of corporate governance issued by Monetary Authority of Singapore (MAS) on May 2 will enhance investor confidence in the republic’s capital markets and develop strong corporate governance among the listed companies here.
The Monetary Authority of Singapore (MAS) has accepted most of the recommendations made by the Corporate Governance Council (CGC). The council was established by MAS in February 2010 to promote a high standard of corporate governance among listed companies in Singapore. The Council submitted its recommendations on November 22, 2011 after widespread consultations.
The revised code will take effect in respect of annual reports relating to the financial year commencing on November 1, 2012. It incorporates key changes in the areas of:
- director independence,
- board composition,
- director training,
- multiple directorships,
- alternate directors,
- remuneration practices and disclosures,
- risk management, as well as
- shareholder rights and roles.
As a Singapore company registration specialist, Rikvin has observed that foreign investors and venture capitalists favor markets which are safe and promise high returns on investments. “The revised code has put in place enough safeguards to protect the interests of investors, thus ensuring a sound well-regulated financial market,” said Mr. Satish Bakhda, Head of Rikvin’s operations.
Meanwhile, MAS indicated that companies would be allowed to make board composition changes at annual general meetings (AGMs) following the end of the relevant financial year. Furthermore, companies will have until the AGMs following the end of financial years commencing on or after May 1, 2016, for board composition changes relating to independent directors making up at least half of the board in specified circumstances.
To carry forward the work on corporate governance, an inter-agency committee will also be formed with representatives from MAS, Singapore Exchange Limited, and the Accounting and Corporate Regulatory Authority (ACRA). The CGC will also be issuing a practical guidance for board members on risk governance.
“With the revised code in place, we anticipate a greater inflow of foreign capital in the city-state, reaffirming our status as one of the best places to register a company in the world,” concluded Mr. Bakhda.