Practice Note 17 (PN17) firms and Bursa Malaysia-listed companies from China will come under the surveillance of the Minority Shareholders Watch Group (MSWG) next year in a move to look after the interest of minority shareholders.
MSWG CEO Devaneson Evanson (picture) said the watch group can have a greater impact by addressing companies whose shareholders are at a higher risk.
To date, MSWG is actively monitoring 300 listed firms. “We are going to cover all because once you become a PN17 company, you are already a risk, while listed China companies have a history of accounting frauds and problems,” he told reporters after the launch of the Malaysia-Asean Corporate Governance (CG) Report 2017 in KualaLumpur yesterday.
Devaneson said MSWG will start monitoring the companies by June next year as most listed companies thathave their financial year ending in December 2018 would hold their AGMs in that month.
Asked on improvements needed in strengthening the CG, he emphasised on gender diversity in the boardroom, as well as performance-based remuneration.
“At MSWG, we always discourage political appointees from sitting on boards. Let the shareholders elect their directors,” said Devaneson. — Bernama