Date: August 14, 2003
The Securities Investors Association of Singapore, in conjunction with the Corporate Governance and Financial Reporting Centre, Institute of Certified Public Accountants of Singapore, the University of Nottingham, PricewaterhouseCoopers, Singapore Institute of Directors and Standard & Poor’s and The Business Times, today announced the launch of the Singapore Corporate Governance Award, the third SIAS Investors’ Choice Award.
SINGAPORE, 14 August 2003 – The Securities Investors Association of Singapore, in conjunction with the Corporate Governance and Financial Reporting Centre at the National University of Singapore Business School, Institute of Certified Public Accountants of Singapore, the University of Nottingham, Standard & Poor’s, PricewaterhouseCoopers, Singapore Institute of Directors and The Business Times today announced the launch of the Singapore Corporate Governance Award. The Award committee includes representatives from the organisations endorsing the Award and is co-chaired by Mr, David Gerald, CEO of the Securities Investors Association of Singapore (SIAS) and Associate Professor Mak Yuen Teen, Vice Dean of the NUS Business School and Co-Director of its Corporate Governance and Financial Reporting Centre (CGFRC). The Award is sponsored by Singapore Exchange Ltd., NTUC Income, and Standard & Poor’s.
This Award is introduced to recognize the companies that best meet the letter and spirit of the Singapore Code of Corporate Governance from the point of view of investors. Two groups of awards will be given – one for SGX Mainboard companies and another for SGX Sesdaq companies – with an overall champion for each category. The decision to have two groups of awards is to recognize that some corporate governance practices may be more suitable for larger companies. The Awards will be presented by DPM & Coordinating Minister for Security and Defence, Dr Tony Tan, at the Annual Investors’ Choice Awards ’03 Dinner to be held on September 19 at the Orchard Hotel.
Companies are first assessed on their corporate governance practices as disclosed in their annual reports, using a checklist developed from the Singapore Code of Corporate Governance. Additional points are awarded to companies that go beyond the Singapore Code and which adopt practices that are in line with best international practices. For example, companies that disclose individual remuneration of directors, as opposed to just disclosure in bands as recommended by the Code, will be given additional points. The best-scoring companies will be then individually evaluated by the Award committee, taking into account the extent to which these companies embrace the spirit of the Code, are perceived by investors, analysts, news media and other experts.
According to Mr Gerald: “It is well accepted that poor corporate governance often causes company failure. SIAS wants to encourage Singapore listed companies to enhance shareholder value through good corporate governance. Hence, this Award, a first in the world by retail investors. The criteria adopted for this Award is not only most rigorous but also most comprehensive of any Award that we are aware of globally.”
A/P Mak Yuen Teen, Co-Director of the CGFRC, and a member of the Corporate Governance Committee and Council on Corporate Disclosure and Governance added: “Recognition through this Award would, we hope, help to spur companies to improve their corporate governance practices. At the end of the day, the push for better corporate governance must come from investors rather than from regulators. We believe that the criteria used in determining this Award represent the types of corporate governance practices that both retail and institutional investors would like companies to adopt.”
Mr David Gerald J.
President & CEO
Securities Investors Association (Singapore)