KUALA LUMPUR: Minority Shareholder Watchdog Group (MSWG) said public-listed companies need to continuously recognise the importance of good corporate governance, especially in the appointment of independent directors. Its chief executive officer Rita Benoy Bushon said although the issue has been raised in the past, there are still a lot of companies which have yet to improve on the transparency level in appointing directors to its board. “It is still a concern to us. A lot of companies still elect independent directors who can be either family members or friends to the board and not from a qualified independent directors’ pool. She told Business Times last week that companies need to continue to recognise the importance of good corporate governance and be committed to ensure that high standard of corporate governance is practised among public listed companies.
However, they are not accountable and responsible for the day to day running of the business, which is the role of the executive directors.
“As an organisation promoting good corporate governance practices among listed companies in Malaysia, MSWG believes that such practices will promote integrity and transparency in the capital market and the long-term sustainability of these companies.
MSWG is the “golden partner” of the International Corporate Governance Network’s (ICGN) summit which will be held in Kuala Lumpur tomorrow. The event, organised by the Employees Provident Fund (EPF) will gather institutional investors representing over US$12 trillion (RM36.48 trillion) in assets under management.
The ICGN summit will discuss, among others, the next steps in Asian corporate governance.
“Corporate governance best practices are becoming increasingly significant these days. It should integrated into investment decision-making processes and not to be treated separately,” Bushon said.
More than 35 speakers will tackle a range of subjects including Asian growth and governance; Asian IPOs and how they benchmark against international standards of corporate governance; and the state of corporate governance in China, India, Asean countries.
Among the speakers are MSWG chairman Tan Sri Abdul Halim Ali, EPF chief executive officer Tan Sri Azlan Zainol and Securities Commission chairman Tan Sri Zarinah Anwar.
By Azlan Abu Bakar, Business Times