Opinion: Hong Kong Companies and the Challenge of Independent Boards: How Far is HKEX from True Corporate Governance Reform?

Opinion | Is Hong Kong's corporate sector prepared for genuinely autonomous boards?

HKEX's suggestions to bolster the autonomy of corporate boards are positively received, yet further efforts are required to enhance governance.

One of their autonomous directors was an active participant, holding positions on 18 publicly traded company boards. Given the lenient criteria for independence, it's questionable whether the inadequate supervision from these boards was simply a happenstance.

The meeting encompasses suggestions for appointing a chief independent non-executive director, as well as limiting the term and roles these directors can hold. Additional suggestions focus on enhancing diversity within the board and bettering risk management strategies.

Members who are investors in the Asian Corporate Governance Association solidly endorse these suggestions. In fact, we think that HKEX has the potential to enhance board autonomy, benefiting all shareholders.