CPAForum2012.PDFVIP

Assoc Prof Lawrence Loh Centre for Governance, Institutions and Organizations NUS Business School 26 April 2012 Spotlight on Singapore: Governance Transparency Index (GTI) 2012 CPA Forum 2012 The GTI Project 2 Tripartite collaboration Supported by 3 Company Investors Corporate Governance Corporate Governance Rationale Market Regulation Trading Infrastructure Corporate Governance in Singapore Code of Corporate Governance Listing Rules Legislation (e.g. Companies Act) 4 The GTI Project: Objectives ? Assess companies on – corporate governance disclosure practices – timeliness, accessibility transparency of financial results announcement ? Recognize companies that go beyond simply meeting Code ? Provide benchmarks for comparison 5 The GTI Project: Framework Board matters (Max = 35 points) Remuneration matters (Max = 20 points) Accountability audit matters (Max = 20 points) Transparency investor relations (Max = 25 points) Base Score (Max = 100 points) Adjustments for bonuses/penalties (+/-) Overall GTI Score 6 GTI Advisory Panel ? Mr Ang Hao Yao, Director, Trader Investment Pte Ltd ? Mr Andrew Kwek, Chief Executive Officer, Institutional Sales SE Asia, Deutsche Asset Management (Asia) Ltd ? Mrs Lee Suet Fern, Senior Director, Stamford Law Corp ? Mr Loh Hoon Sun, Managing Director, Phillip Securities Pte Ltd ? Mr Chaly Mah, Chief Executive Officer, Deloitte Asia Pacific ? Mr Alvin Tay, Editor, The Business Times 7 GTI 2012 - Coverage ? 674 companies that released ARs in 2011 ? For companies with Sep financial year-end, cut- off date: 31 Jan 2012 ? 75 companies excluded: – Companies with secondary listings – Suspended companies – Delisted companies – Newly-listed companies – REITs, Trust Funds – Companies that did not release their ARs during time period 8 GTI 2012 – Data Sources ? Annual reports ? Company announcements: 1 January 2010 to 31 January 2012 ? Corporate w