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Letter to HKEX on the Review of Corporate Governance Code and Related Listing Rules

On 25 June 2021, ACGA sent a letter to the Hong Kong Exchanges and Clearing (HKEX) in response to its consultation paper on the “Review of Corporate Governance Code and Related Listing Rules”.

We have divided our response into four categories: high-level comments, positive proposals, specific concerns and bolder steps. Generally we feel the proposals do not go far enough and bolder steps are needed to upgrade governance at Hong Kong-listed companies. In particular, the key areas where we would like to see more action are as follows:

• A quota and timeframe for gender diversity on boards. We advocate a quota of 30% women on boards within four years (ie, by 2025)
• Lead independent directors as a Code provision
• Guidance to boards on preparing for climate change
• Strengthening the independent election of independent directors