CORPORATE GOVERNANCE has become a key element in the competition for the Hong Kong Management Association's Best Annual Reports Awards.
'I can't disclose what per cent corporate governance plays in the awards judging, but it is important,' said Charles Grieve, director of accounting policy for the Securities and Futures Commission and one of nine judges in the awards competition.
Corporate governance, a term barely heard a decade or more ago, has become the watchword for transparency, accountability and management quality.
Mr Grieve said Hong Kong was making big strides to catch up with corporate governance practices in western countries. The Hong Kong stock exchange and the Companies Ordinance were adding weight and urgency to the cause by increasing corporate governance requirements.
'Many of the stock exchange rule changes apply from January 1, 2005, so in the 2005 annual reports [published in 2006] we expect to see a big improvement, in the sense that much more information will be required to be disclosed,' he said.
The multi-tiered corporate governance approach in the stock exchange begins with mandatory listing rule requirements, followed by a voluntary Code on Corporate Governance Practices with 'comply or explain' provisions. The final tier is recommended best practices.
