Julia Charlton presented a webinar discussing the Hong Kong Stock Exchange's proposed amendments to the Corporate Governance Code and related Listing Rules. The Exchange's proposals, published in a consultation paper in June 2024, aim to strengthen corporate governance practices and enhance board effectiveness and independence.

Key proposals include introducing a Lead INED role to improve communication with shareholders and implementing mandatory disclosure requirements for director training, emphasizing a comprehensive understanding of directors' responsibilities. The Exchange also proposes a hard cap of six concurrent directorships and a tenure limit of nine years for INEDs to ensure directors can devote sufficient time to their roles.

A Code Provision would require regular board performance reviews and the establishment of a board skills matrix to enhance board composition. To increase diversity, the Exchange recommends having at least one female director on the nomination committee and proposes a Listing Rule requiring listed companies to have a workforce diversity policy.

The amendments also focus on risk management and internal control, suggesting modifications to Mandatory Disclosure Requirements for more detailed reporting. The proposed changes are expected to take effect on January 1, 2025, with a transition period for specific amendments. The consultation period has ended, and the Exchange will review responses before publishing its conclusions.

#CorporateGovernance #HKEXReforms #BoardDiversity

Timecodes: 00:00 Introduction to the Consultation 01:40 Summary of Consultation Proposals 03:24 Lead INED Proposal 09:15 Director Training Requirements 16:24 Performance Reviews and Skills Matrix 21:20 Hard Cap on Directorships and Tenure 32:29 Diversity Proposals 38:05 Risk Management and Internal Controls 44:08 Dividend Policy Disclosure 49:43 Minor Amendments and Implementation Timeline

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