International
Asia Pacific
EMEA
North America
Latin America
The Stock Exchange of Hong Kong Limited ("SEHK") has amended its Listing Rules, including the Corporate Governance Code (“CG Code”), to enhance the corporate governance framework and promote good governance among issuers. The amendments follow a consultation period and the conclusions drawn in the published Consultation Conclusions.
The amendments emphasize the importance of good corporate governance as part of any Environmental, Social and Governance (ESG) program, among other things, and highlight the requirement for issuers to establish and maintain appropriate and effective risk management and internal control systems. Of note is that whistleblowing and anti-corruption (ABC) policies and systems is now a CG Code provision, rather than only a recommended best practice. It is important for all issuers - and those preparing to list - to ensure compliance with the amendments, most of which came into effect on 1 January 2022.
The amendments cover a number of aspects of good corporate governance, including:
The complete set of amendments to the CG Code is published on the SEHK website here. The SEHK has also published new guidance (Corporate Governance Guide for Boards and Directors) to assist with compliance with the new requirements.
A strong ethical culture and compliance program are at the heart of good corporate governance. Issuers should take steps to review and enhance their compliance program:
If you would like clear, practical guidance on designing, establishing and maintaining a robust compliance program, please refer to Baker McKenzie's 5 Essential Elements Of Corporate Compliance.
Copyright © 2024 Baker & McKenzie. All rights reserved. Ownership: This documentation and content (Content) is a proprietary resource owned exclusively by Baker McKenzie (meaning Baker & McKenzie International and its member firms). The Content is protected under international copyright conventions. Use of this Content does not of itself create a contractual relationship, nor any attorney/client relationship, between Baker McKenzie and any person. Non-reliance and exclusion: All Content is for informational purposes only and may not reflect the most current legal and regulatory developments. All summaries of the laws, regulations and practice are subject to change. The Content is not offered as legal or professional advice for any specific matter. It is not intended to be a substitute for reference to (and compliance with) the detailed provisions of applicable laws, rules, regulations or forms. Legal advice should always be sought before taking any action or refraining from taking any action based on any Content. Baker McKenzie and the editors and the contributing authors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The Content may contain links to external websites and external websites may link to the Content. Baker McKenzie is not responsible for the content or operation of any such external sites and disclaims all liability, howsoever occurring, in respect of the content or operation of any such external websites. Attorney Advertising: This Content may qualify as “Attorney Advertising” requiring notice in some jurisdictions. To the extent that this Content may qualify as Attorney Advertising, PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. Reproduction: Reproduction of reasonable portions of the Content is permitted provided that (i) such reproductions are made available free of charge and for non-commercial purposes, (ii) such reproductions are properly attributed to Baker McKenzie, (iii) the portion of the Content being reproduced is not altered or made available in a manner that modifies the Content or presents the Content being reproduced in a false light and (iv) notice is made to the disclaimers included on the Content. The permission to re-copy does not allow for incorporation of any substantial portion of the Content in any work or publication, whether in hard copy, electronic or any other form or for commercial purposes.
Are you sure want to delete comment ?
Scan this QR Code to share this content