KUALA LUMPUR (July 21): Bursa Malaysia Bhd has issued a consultation paper seeking public feedback on its proposed amendments to the Main Market and ACE Market listing requirements in relation to the appointment and independence of directors.
In pursuance of good governance, leadership continuity, and board independence within the market, Bursa Malaysia is proposing the following enhancements to the listing requirements:
1. encouraging board renewal and enhancing independence by limiting the tenure of an independent director to not more than a cumulative period of 12 years from the date of his first appointment; and
2. improving board quality and promoting greater transparency by requiring a listed issuer to have and publish on its website, a fit and proper policy for the appointment and reappointment of directors of the listed issuer and its subsidiaries.
To aid listed issuers, Bursa Malaysia will also be providing guidance, illustrations and better practices relating to the fit and proper policy.
Bursa Malaysia said Covid-19 highlighted the need for boards to continuously assess composition as well as structure to ensure that they are fit for purpose in the new normal.
“In this light, the emphasis is now centred on director tenure, quality and integrity since these are essential to board effectiveness,” the exchange said in a statement today.
Welcoming views from the public on the proposed amendments, Bursa Malaysia said interested parties may submit their comments and feedback by Sept 1 via the consultation paper which can be accessed at https://www.bursamalaysia.com/regulation/public_consultation.
Shares of Bursa Malaysia fell two sen or 0.26% to close at RM7.61 today. giving a market capitalisation of RM6.16 billion.