The Securities Commission Malaysia (SC) has introduced a new code of ethics for Malaysian company directors and company secretaries. The code outlines high standards of conduct in areas such as compliance with laws and regulations, conflicts of interest, fair dealing with shareholders, information disclosure, risk management, and sustainability. It applies to all directors and secretaries in Malaysia, regardless of their size or industry.
The code is not a binding statute or regulation, but the SC may take disciplinary action against those who do not comply. The code emphasizes transparency, integrity, and accountability, which are essential values for building a strong reputation and bridging the gap between public expectations and reality. The code is expected to lead to changes in company governance and management, such as stronger risk management systems and increased disclosure of information to shareholders. The code may also apply to subsidiaries of Malaysian companies located outside Malaysia.
The Malaysian Anti-Corruption Commission Act 2009 (MACC Act) prohibits corrupt conduct by directors and secretaries. The code of ethics, which emphasizes transparency, integrity, and accountability, helps reduce the risk of companies falling foul of this law. The code aims to bridge the gap between public expectations and reality, addressing the need for stronger corporate governance and ethical business practices in Malaysia.