Published by rhtlaw at October 14, 2011 On 14th September 2011, the Singapore Exchange (SGX) announced amendments to the Listing Manual to strengthen corporate governance practices and to foster greater corporate disclosure.
RHT Law LLP conducted 2 briefing sessions on 7th October 2011 (Friday) to update clients on the recent changes to the Listing Manual. The firm received overwhelming interest of 38 listed companies and more than 90 attendees who are Board members, Audit Committee members, CEOs, CFOs, Company Secretaries, and other managerial level delegates.
Speaker Chew Kok Liang, Corporate & Securities Partner of RHT Law, shared that the changes to the listing manual rules show a shift in focus from imposing too onerous obligations on Independent Directors to one that emphasizes the importance of internal controls, and the Board and Audit Committee's responsibilities in that regard.
The session also saw industry veterans Mr Irving Low, Head of Governance, Risk & Compliance Services of KPMG Advisory, and Ms Linda Hoon, Senior Vice President and Group Company Secretary, Head of Management Practice, Group Legal, Compliance and Secretariat of DBS Group Holdings Ltd. join RHT Law's Partners Tan Chong Huat, Lawrence Wong, and Ch'ng Li-Ling of the Corporate & Securities Practice, in a 1 hour panel session to discuss the impact of these changes on listed companies in Singapore.
Ms Linda Hoon shared lessons from the recent UBS rogue trading case to raise pointers on how listed companies and financial institutions can strengthen internal controls to mitigate the risk of similar incidents happening in their organisation. She also shared her views on how an organisation and its board members can comply with the "SIPS" (Spirit, Intent, Purpose, Substance) of the Listing Rules, where the focus is no longer on following the black letter of the law, but by abiding by the SIPS.
Mr Irving Low gave his risk management perspectives on the importance for an organisation to identify its most significant risks and setting frameworks to mitigate various types of risks that organisations may face in times of economic uncertainties or financial difficulties. He also raised from a governance point of view, how companies can deal with 'key man' risks, and clearly spell out the roles and responsibilities of a CEO, using the case study of Apple and Steve Jobs' demise to highlight the importance of succession planning.
The full set of amendments can be found at:
http://rulebook.sgx.com/net_file_store/new_rulebooks/s/g/SGX_Mainboard_rules_September_29_2011_amended2.pdf