Singapore Exchange outlines strengthened corporate governance measures

Corporate governance practices have been strengthened at the Singapore Exchange (SGX) as the company vies to improve corporate disclosure.

SGX made the changes to its listing rules after a thorough consultation process that ended in January 2010.

The amended regulations will come into effect on September 29th and will apply to the exchanges mainboard listings.

According to the firm, there was an overwhelming response to the consultation and SGX claims it has invested a considerable amount of time in addressing regulatory issues before the rules were changed.

To safeguard shareholder interests, SGX now requires companies to disclose loan agreements that relate to controlling shareholder interest.

Companies are also required to notify SGX of any changes to their legal representatives.

As well as corporate governance, the rules impact upon executive recruitment, the appointment of governance advisers and the transfer of securities.

Recently, research published by the Centre for Governance, Institutions and Organizations, NUS Business School and the Business Times showed a number of companies in Singapore have taken steps to improve their corporate governance disclosure practices, although these firms are still in a minority.