Listing requirements amended to enhance board effectiveness and diversity
25 February 2022
On 19 January 2022, Bursa Malaysia announced that it has enhanced the Main and ACE Market listing requirements to further strengthen board independence, quality and diversity.
Key enhancements include the following:
- The tenure of an independent director is now limited to not more than a cumulative tenure of 12 years in a listed issuer and its group of companies. All independent directors impacted by this enhancement must resign or be re-designated as non-independent directors by 1 June 2023.
- Listed issuers with a market cap of RM2 billion as at 31 December 2021 are required to appoint at least one woman director on their boards by 1 September 2022. All other listed issuers must comply with this requirement by 1 June 2023.
- Listed issuers are required to have in place a fit and proper policy that addresses board quality and integrity for the appointment and re-election of directors across its group of companies, which must be published on the listed issuers’ websites from 1 July 2022.