Professional Documents
Culture Documents
1 Introduction To CG
1 Introduction To CG
1 Introduction To CG
1
Outlines
• Definition of Corporate governance
• Objectives Of Corporate Governance
• Corporate Governance Environment
• History/ the improvement of corporate governance in Malaysia
• Reasons for MCCG updates
• Improvement of CG adoption in Malaysia
• Benefits of Corporate Governance
• The core principles of Corporate Governance
• Implementation of Corporate Governance Framework
• Corporate Governance Structures
• Elements of Corporate Governance
• The principles of MCCG 2017 and general highlights
• Current issues of CG in Malaysia
2
Definition of Corporate governance
3
Definition of Corporate governance
• Cadbury Report, 1992 : The system by which organisations are directed and control
• It also provides the structure through which the objective of the company are set, and the
means of achieving those objectives and monitoring performance, are determined.
4
Objectives Of Corporate Governance
• To create shareholder value and attract new investment.
5
Corporate Governance Environment
6
History of corporate governance in Malaysia
7
Improvement of CG principles in Malaysia
8
Reasons for MCCG Updates
• Shifts are inevitable and necessary requirement to deal with market dynamic
and effectively manage corporate governance as part of global sustainable
development.
9
Improvement of CG adoption in Malaysia
• Corporate governance blueprint 2011-2020 • ASEAN corporate governance
• To sets out the desired corporate • to raise the corporate governance
governance landscape going forward, standards and practices of ASEAN
promote good compliance and publicly listed companies (PLCs),
corporate governance culture and
• to give greater international visibility
acheiving ethical and sustainable
adoption. to well-governed ASEAN PLCs and
showcase them as investable
• Malaysian Code for Institutional Investors companies, and
(MCII) on 27 June 2014 • to complement other ACMF initiatives
• The purpose of the Code is to and promote ASEAN as an asset
enhance the communication class.
between institutional investors like
EPF, Khazanah Nasional Berhad, • BNM Corporate Governance
KWAP, Lembaga Tabung Haji etc. and
• The adoption of sound corporate
its investee companies that are
publicly listed to help improve long governance standards and practices
term returns to shareholders and by financial institutions serves to
further promote good corporate protect the critical role of financial
governance among the listed institutions in intermediating funds to
companies. support the real economy.
10
Benefits of Corporate Governance
• Increasing investors’ confidence • Enabling better strategic planning
11
Potential consequences of poor CG
• Failing companies
• Reputational problems
• Excessive regulations
• Powerful regulators
12