New disclosure guide by SGX for companies and investors

The Singapore Exchange (SGX) released a new comprehensive guide on Thursday, Jan 29, 2015, to provide more information to companies and investors on specific principles and guidelines on corporate governance. -- ST PHOTO: LIM YAOHUI
The Singapore Exchange (SGX) released a new comprehensive guide on Thursday, Jan 29, 2015, to provide more information to companies and investors on specific principles and guidelines on corporate governance. -- ST PHOTO: LIM YAOHUI

SINGAPORE - The Singapore Exchange (SGX) is providing more information to companies and investors in a new comprehensive disclosure guide, it announced on Thursday.

Companies wanting clarity on specific principles and guidelines on corporate governance can look to the guide, which has been laid out in a question-and-answer format.

SGX said listed companies are encouraged to include the new disclosure guide in their annual reports.

This is in line with listed companies being expected to comply with the Code of Corporate Governance 2012. If not, they have to explain any deviations in their annual reports.

Investors can then use the guide to review and compare the firms' governance practices, for a better assessment of the companies they invest in.

SGX said that recent surveys showed that companies were not making meaningful disclosures about remuneration, risk governance, board diversity and sustainability.

Ms June Sim, SGX's listing compliance head, said: "Companies with high disclosure standards and sound corporate governance practices will rise above the competition and benefit from trust and confidence by stakeholders, the outcome of which is a better capital market."

Mr David Gerald, chief executive of the Securities Investors Association Singapore (Sias), welcomed the guide.

He said: "How companies use SGX's new disclosure guide will be a key consideration when we evaluate companies for the Singapore Corporate Governance Awards."