On 14 June 2024, The Stock Exchange of Hong Kong Limited (the Exchange) published a consultation paper outlining proposed amendments to the Corporate Governance Code (Code) and related Listing Rules to strengthen the corporate governance for companies listed in Hong Kong. The main proposals are summarised as follows:
Area | Major Changes (Rule/Code Provision
(CP)(Comply/Explain)/ Mandatory Disclosure Requirement (MDR)) |
---|---|
Board composition |
|
Diversity |
|
Board skills and training |
|
Others |
|
The effective implementation date of the above proposals is
proposed to be 1 January 2025, with a transition period of three
years in respect of the 9-year tenure requirement of INEDs and the
cap on the number of directorships (i.e. these requirements will
apply starting from 1 January 2028).
KEY TAKEAWAYS
Considering that the above proposals may come into effect as early as 1 January 2025, issuers should start making preparations as soon as practicable, for example, by reviewing and enhancing the scope of the training to be provided to directors and searching for suitable candidates to satisfy the new INED and diversity requirements.
Visit us at mayerbrown.com
Mayer Brown is a global services provider comprising associated legal practices that are separate entities, including Mayer Brown LLP (Illinois, USA), Mayer Brown International LLP (England & Wales), Mayer Brown (a Hong Kong partnership) and Tauil & Chequer Advogados (a Brazilian law partnership) and non-legal service providers, which provide consultancy services (collectively, the "Mayer Brown Practices"). The Mayer Brown Practices are established in various jurisdictions and may be a legal person or a partnership. PK Wong & Nair LLC ("PKWN") is the constituent Singapore law practice of our licensed joint law venture in Singapore, Mayer Brown PK Wong & Nair Pte. Ltd. Details of the individual Mayer Brown Practices and PKWN can be found in the Legal Notices section of our website. "Mayer Brown" and the Mayer Brown logo are the trademarks of Mayer Brown.
© Copyright 2024. The Mayer Brown Practices. All rights reserved.
This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.
We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.