On 14 June 2024, The Stock Exchange of Hong Kong Limited (the Exchange) published a consultation paper outlining proposed amendments to the Corporate Governance Code (Code) and related Listing Rules to strengthen the corporate governance for companies listed in Hong Kong. The main proposals are summarised as follows:
The effective implementation date of the above proposals is proposed to be 1 January 2025, with a transition period of three years in respect of the 9-year tenure requirement of INEDs and the cap on the number of directorships (i.e. these requirements will apply starting from 1 January 2028).
KEY TAKEAWAYS
Considering that the above proposals may come into effect as early as 1 January 2025, issuers should start making preparations as soon as practicable, for example, by reviewing and enhancing the scope of the training to be provided to directors and searching for suitable candidates to satisfy the new INED and diversity requirements.
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