In the FAQ on the MCCG, the Securities Commission Malaysia states that the MCCG is a set of corporate governance best practices for companies to adopt.

The Bursa Listing Requirements require PLCs to ensure that their board of directors provide an overview of the application of the principles set out in the MCCG, in their annual reports.

PLCs must disclose the application of each practice set out in the MCCG during the financial year, to Bursa Malaysia in Corporate Governance Report and announce the same together with the announcement of the annual report. PLCs must state in their annual reports, the designated website link or address where such disclosure may be downloaded.

The Listing Requirements also require PLCs that have departed from a practice in the MCCG to:
• provide an explanation for the departure; and
• disclose the alternative practice adopted and how such alternative practice achieves the intended outcome as set out in the MCCG.

If a company fails to do so, it is in breach of the Listing Requirements. Bursa may take action or impose actions or penalties as it considers appropriate in the event of breach of Listing Requirements.

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This post was first posted on Linkedin on 30 April 2021.