Mccg 2017 Vs Mccg 2012

For large companies the board comprises.

Mccg 2017 vs mccg 2012. Listed companies are however required to report on their compliance with the mccg 2012 in their annual reports. Companies are encouraged to amend their articles of association or other constitutive documents to provide for telephonic and video conference meetings. Mccg 2012 rather than mccg 2017. Malaysia and takes effect on the 26 april 2017 replacing the 2012 code.

On 26 april 2017 securities commission malaysia has released new malaysian code of corporate governance mccg 2017 replacing mccg 2012 with several changes and recommendations to enhance. 2 4 the mccg was r eviewed in 2007 and 2012 to ensure that it remains relevant and is aligned with globally recognised best practices and standards. The new mccg introduces substantial changes and recommendations with a view of raising the standards of corporate governance of companies in malaysia. 4 28 2017 5 39 05 pm.

The mccg 2012 like all corporate governance advocates the adoption of codes standards thatgo beyond the minimum prescribed by regulation. 2 5 in 2017 the mccg which supercedes its earlier edition takes on a new approach to promote greater internalisation of corporate governance culture. Code of corporate governance 2012 board matters page 3 of 33 1 4 the board should meet regularly and as warranted by particular circumstances as deemed appropriate by the board members. The board must comprise a majority of independent directors where the chairman of the board is not an independent director.

Mccg 2012 sets out broad principles and specific recommendations on structures and process in making good corporate governance an integral part of business dealings and corporate culture apart from recommendations to strengthen the board it also encourages companies to have disclosure policies and to commit to respect shareholders rights it has 8 principles and 26. The observance of the mccg 2012 by companies is voluntary. One of the key features of the mccg was the introduction of the comprehend apply and report care approach which is a shift away from the comply and explain to the apply or explain alternative approach. Mccg 2017 replacing mccg 2012 with several changes and recommendations to enhance corporate s accountability transparency and sustainability.

Therefore the objective of this study is to compare the degree of compliance of this new mccg 2017 among healthy companies and likelihood of fraudulent financial reporting. The present mccg was issued in april 2017 and precedes its 2012 predecessor.