Posts Tagged 'Asia'

Branding corporate governance


It is unfortunate that not many companies capitalise on their strong corporate governance practices even though the latter should be an integral part of their overall strategy of branding and positioning.

This observation was made by John Lim at the recent launch of the ASEAN Corporate Governance Scorecard 2014 results. Mr Lim, who is Singapore’s nominated corporate governance expert to the ASEAN Scorecard expert group, said: “Many of the Singaporean companies have not scored as well as they should as they did not fully disclose their corporate governance practices. Corporate governance is like justice, it must not only be done but also be seen to be done; hence the need for good and full disclosure.”

This lack of disclosure by companies of even their laudable attributes could be one of the reasons why SGX– listed shares are under-appreciated. Currently, around half of listed companies are trading at, or below, book value.

Listed companies, especially, need to play their part in attracting the attention of investors. They need to be more focused on communicating and branding their key assets, one of which could be their corporate governance practices.

Branding is about delivering on a promise, and doing so consistently. Most directors understand the need to market their company’s products and services, and the important role that brand values play in securing and keeping customers.

What companies need to do more is to apply this thinking to their shares.

If the company’s shares are a product and investors are the customers, what is the brand value that the company stands by? What is it that the directors and management want the shares to be known for in the market? What will keep investors buying the shares, or holding onto them for a long time? Read more here.

Governance pressure cranking up on Asian PE

by Oliver Jones for Asian Investor

Asian private equity funds are being forced to adopt higher standards of governance because of pressure from European investors, according to an industry association.

Environmental, social and governance (ESG) policies have been driven up the corporate agenda in the West in recent years, but in Asia the concept is still nascent.

Nevertheless, Jessica Robinson, CEO of the Association for Sustainable & Responsible Investment in Asia (ASrIA), said that ESG change was likely to be rapid in Asia in the coming years. The key driver for Asian PE funds to adopt ESG guidelines was to attract investors from Europe, she noted.

“I think that change is going to be very rapid over the next couple of years ”said Robinson. “I think the biggest growth area [for growth in sustainable investing in Asia] is private equity.”

She observed that stock exchanges around the region were spending a lot of time and energy on ESG related issues, citing mandatory ESG disclosure rules announced by Singapore’s stock exchange last year. A greater focus on governance has been highlighted as a key issue for 2015. Read more here.


‘CEOs doubling up as chairmen a big problem in Asia’

by Koo Jin Shen for The Brunei Times/Asia News Network

CEO duality, or when a chief executive officer and the chairman of its board of directors is the same person is a huge problem in Asia, said an expert in internal auditing and fraud prevention.

“As a best practice, (the CEO and the chairman of the board) should never be the same person because the functions are distinctively different,” said Sanjeev Gathani, a 10-year veteran in the field of internal auditing and fraud prevention and investigation.

“The chairman overseas the board of directors and the CEO reports to the board of directors. If you have the same person doing both jobs, it becomes a problem,” he said. Read more here.

Call for greater corporate governance in Asia

June 10th 2013, The Star Online

PETALING JAYA: The international community is calling for greater corporate governance in Asia, with further improvement in the areas of enforcement and board nominations.

Flying in from France to attend the Asian Roundtable on Corporate Governance hosted by the Securities Commission (ARCG), Organisation for Economic Co-operation and Development (OECD) senior policy analyst Fianna Jurdant said if a country had a healthy governance system, it would boost market development, and attract more investments.

“From a global perspective, we see a shift of wealth towards emerging markets and Asia, what happens here is very important. And corporate governance will be playing a critical role, where on one hand supporting market growth, and also confidence in the public enforcement system,” she said. Continue reading…

“New Developments in Corporate Governance Reform in Asia: Northern Chills, Southern Warmth”

Jamie Allen, ACGA (Asian Corporate Governance Association), March 2013

In late March 2013, ACGA gave briefings in Sydney and Melbourne on recent developments in corporate governance in Asia. Our presentation looked at factors impeding reform in North Asia and promoting improvements in Southeast Asia. It summarised the state of play in several major Asian economies and the impact of culture and custom on modern notions of corporate governance. Continue reading…



Recent Trends in Indian and Global Capital Market

by Dr. Peña Prakash and Sandra Dubey for Wealth Financial Blog, November 7th, 2010.

Indian Capital Market Listing

The Indian Capital Market and the United Nations more than a century. U.S. History dates back to 1875, when 22 agents Formatting Bombay Stock Exchange (BSE). In the period, the Indian stock market has continually evolved to become a market or more dynamic, efficient and modern financial instruments in Asia.

Today confirmation of the Indian market best practices and international standards, the IEA and in terms of structure in terms of operational efficiency. Indian stock markets are mostly governed by: a) The company Act1956, b), the Securities Contracts (Regulation) Act 1956 (SCRA Act), c), the Securities and Exchange Board of India (SEBI) in 1992. A brief review of these standards are in the following

a) The Companies Act, 1956 PROBLEM IS occupations, for the granting and transfer of securities and various aspects of business management. This includes rules for communications in public affairs, the Rules for the subscription, and the problems associated with the use of premiums and discounts on various topics.

b) Standards for the SCRA provides direct and indirect control of stock exchanges in order to prevent undesirable transactions in securities. Provides regulatory powers of the Central Government on grants, contracts Securities and Exchange Stock Securities list.

c) The SEBI Act empowers SEBI to protect the interest of investors in securities markets, to promote the development of values and to regulate the security market. (continue reading… )

Related Party Transactions and Effective Governance – How it Works in Practice in India

by Pratip Kar for the Asia Roundtable on Corporate Governance – Fighting Abusive Related Party Transactions in Asia, October 2010.

Related party transactions can present a conflict of interest and may not be consistent with the best interests of the company and its shareholders. The paper presents some instances of Indian companies who fully comply with the regulatory system, and several measures often adopted by some companies to circumvent the system and disguise the related party transactions as usual commercial decisions.

Download the document here.

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