Bursa Malaysia proposes changes to director appointments, independence

PETALING JAYA: Bursa Malaysia Bhd is proposing key enhancements to the Main Market and ACE Market listing requirements, including limiting the tenure of an independent director to not more than a cumulative period of 12 years from the date of first appointment; and requiring a listed issuer to have and publish on its website, a fit and proper policy for the appointment and reappointment of directors of the listed issuer and its subsidiaries.

Bursa Malaysia yesterday issued a consultation paper seeking public feedback on the proposed amendments to the listing requirements in relation to director appointment and independence.

“To aid listed issuers, Bursa Malaysia will also be providing guidance, illustrations and better practices relating to the fit and proper policy,“ it said in a statement.

It added that good governance, leadership continuity and board independence continue to be key focus areas among stakeholders and regulators. The Covid-19 pandemic also highlighted the need for boards to continuously assess composition as well as structure to ensure that they are fit for purpose in the new normal.

“In this light, the emphasis is now centred on director tenure, quality and integrity since these are essential to board effectiveness.

“The exchange welcomes views from the public. Interested parties are invited to submit their comments and feedback to Bursa Malaysia by Sept 1, 2021,“ it said.

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