On 16 April 2021, the Stock Exchange of Hong Kong Limited (the “Exchange”) published a consultation paper (“Consultation”) seeking views and comments on proposed changes to the Corporate Governance Code (“CG Code”).
To ensure the corporate governance framework remains fit for its purpose, continues to promote improvements in the quality of governance and is adequate to maintain investors' confidence in the market, the Exchange conducts reviews from time to time to take into account market developments and observations, as well as the views expressed by professionals, market practitioners and industry groups, including those representing investors.
This Consultation aims to:
(i) highlight the importance of corporate culture in alignment with vision and strategy to deliver long-term sustainable performance (“Culture”);
(ii) enhance board independence, promote board refreshment and succession planning (“Director’s Independence”);
(iii) further promote board (gender) diversity of listed issuers (“Diversity”);
(iv) strengthen the role of the nomination committee (“Nomination Committee”);
(v) improve communications with shareholders (“Communications with Shareholders”);
(vi) elaborate on the linkage between CG and ESG, and improve the timeliness of ESG reports by aligning the publication timeframe of ESG reports with annual reports (“ESG Reporting”); and
(vii) improve the flow and readability of the Code (“Code Structure”).
The deadline for submissions is 18 June 2021.