The Consultation Paper on the Malaysian Code of Corporate Governance 2016

As much as one criticises, one must also praise where praise is due.

After days and weeks, i finally got around to read the consultation paper on the MCCG 2016. What a wonderful document it is, congratulations Securities Commissions Malaysia!

Here are my comments:

1. The person that wrote this paper obviously understood the intention of the authors of the original MCCG 2000 as in many aspects it goes back to the original code and removes any doubt at to what it was intended to achieve.

2. It leaves no doubt that the mechanistic approach that listed entities adopted is no longer acceptable. No more CG Statements for the sake of compliance, it is now has to be factual and be practiced.

3. It reiterates the leadership role of the board and that boards are not subservient to management or dominant shareholders. I wonder if this is laying the foundation for action not just against the Executive Directors and Audit Committee Members but all directors!

4. It has Core practices that is the minimum and CORE+, that are exemplary practices that companies are encouraged to follow. Since the Core+ are nothing so difficult one can only ask "how can companies not embrace them?"

Unfortunately for companies, it boards and their dominant shareholders it is not going to be an easy ride any longer, time to deliver for what you are paid.

My reminder to the SC is that I hope the Issues/Corporate Finance head at the SC will understand this. I still cannot understand how he approved the number of listing where there was an obvious imbalance in the Board.

Once again sybas  Securities Commission, now lets get it implemented and ensure its compliance!