More guidance needed on governance for group companies: study
Published on Jul 2, 2014 11:20 AM
More disclosure on how listed group companies ensure good governance is needed in Asia, a new study has suggested.
The study, conducted by governance watchers Mak Yuen Teen and Chris Bennett, found that most of the large listed companies in Singapore, Australia and Malaysia are made up of group entities.
In many cases, the listed companies are holding companies and the bulk of their assets and liabilities are held by group entities rather than the parent organisation. This approach was most common for Malaysian companies, followed by those in Singapore and then Australian firms.
The study's findings, released on Wednesday, showed that the average number of group entities disclosed by Singapore listed firms is 47. This is lower than Australia's average of 93 and Malaysia's average of 90.
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