On 14 June 2024, the Stock Exchange of Hong Kong Limited (the “Exchange”) published a consultation paper (“Consultation”) seeking market feedback on proposed changes to the Corporate Governance (“CG”) Code. The deadline for submission is 16 August 2024.
The Exchange reviews its corporate governance framework from time to time to ensure that it remains fit for purpose, continues to promote high quality corporate governance standards, and is adequate for maintaining investors’ confidence.
Key proposals area of the Consultation are summarised below:
- Board Effectiveness
- Board Independence
- Board and Workforce Diversity
- Risk Management and Internal Controls
- Dividends
Subject to the responses to this Consultation, the revised CG Code and related Listing Rules are proposed to come into effect on 1 January 2025 and apply to CG Reports and annual reports in respect of the financial years commencing on or after 1 January 2025. In respect of Long Serving INEDs and overboarding, the relevant rules would be subject to a three-year transition period and become effective from 1 January 2028 onwards.
