Bursa improves registration rules to boost board efficiency

KUALA LUMPUR: Bursa Malaysia Bhd has announced enhancements to the Main Market and ACE listing requirements, aimed at further strengthening the independence, quality and diversity of the Board of Directors.

The exchange operator said that to promote board quality and strengthen board independence, the enhanced listing requirements now limit an independent director’s tenure to a maximum of 12 years’ cumulative tenure at a listed issuer and its group of companies.

“All long-serving independent directors affected by this enhancement must resign or be reappointed as non-independent directors by June 1, 2023,” Bursa Malaysia said in a statement yesterday.

He said another key improvement is the requirement for listed issuers (publicly listed companies – PLCs) with a market capitalization of RM2 billion as of December 31, 2021, to appoint at least one female director to their board of directors. administration by September 1, 2022, as announced. by Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz in his 2022 budget speech on October 29, 2021.

For the remaining automata, he said, the requirement must be met by June 1, 2023.

In addition, the exchange introduces a new rule that requires PLCs to put in place a proper and appropriate policy that addresses the quality and integrity of the board of directors for the nomination and re-election of directors at large. PLC Group, which is to be posted on PLC websites, effective July 1, 2022.

“PLCs are also required to disclose the application of their fit and proper policy in nominating and electing their directors in their annual reports.

“This aims to improve the overall quality of directors and to promote greater transparency on the criteria for board appointments.

Bursa Malaysia Managing Director Datuk Muhamad Umar Swift said the changes will prompt PLCs to refresh their board composition, with more emphasis on board quality, diversity and independence, which will promote the dynamism of the Board of Directors.

Further information on the amended main market listing requirements can be found on the Bursa Malaysia website. – Bernama

Sara H. Byrd