26 February 2019
On 12 February 2019, the Monetary Authority of Singapore (“MAS”) announced the establishment of a permanent industry-led body, the Corporate Governance Advisory Committee (“CGAC”), to advocate good corporate governance practices among entities listed in Singapore (“listed entities”).
In February 2017, MAS established the Corporate Governance Council (“Council”) to review the Code of Corporate Governance that was issued in May 2012. On 6 August 2018, MAS announced that it has accepted all the recommendations by the Council to enhance corporate governance in Singapore and issued the revised Code of Corporate Governance (“2018 CG Code”). The 2018 CG Code sets out broad principles of corporate governance, which are underpinned by provisions that are designed to support compliance with the principles. The “comply-or-explain” regime continues to apply to the provisions of the 2018 CG Code. To complement the 2018 CG Code, MAS has issued Practice Guidance which sets out best practices for listed entities. Adoption of the Practice Guidance is voluntary.
One of the recommendations of the Council is to set up the CGAC to advocate good corporate governance practices.
Mandate of the CGAC
The role of the CGAC is advisory in nature and its mandate is as follows:
- Identify and assess the current, emerging and potential risks to the quality of corporate governance in Singapore;
- Provide opinions on corporate governance practices, with the objective of advocating good practices as benchmarks, including highlighting areas for improvement for listed entities in general;
- Issue or revise Practice Guidance, where appropriate, to clarify the principles or provisions of the 2018 CG Code;
- Monitor international trends and recommend changes to the 2018 CG Code where appropriate;
- Consult stakeholders, including listed entities, on proposed changes to the 2018 CG Code or Practice Guidance if necessary; and
- Act as a resource to regulators (Singapore Exchange Regulation (SGX RegCo), MAS and Accounting and Corporate Regulatory Authority (ACRA)), including advising regulators on corporate governance issues referred to it by regulators.
Members of the CGAC
The CGAC is made up of members with diverse and extensive experience in corporate governance matters. Allen & Gledhill Co-Chairman and Senior Partner, Christina Ong, is a member of the CGAC.
Other CGAC members include directors on the boards of listed entities and members from key stakeholder groups such as large and small companies, institutional and retail investors, audit and legal professionals, academia and the media.
The following materials are available on the MAS website www.mas.gov.sg:
- Media release dated 12 February 2019
- Annex A: About the Corporate Governance Advisory Committee
- Annex B: Members of the Corporate Governance Advisory Committee