CACG Released The Revised Code of Corporate Governance for Listed Companies
The 9th International Symposium on Corporate Governance was held in July 22nd and 23rd, 2017. In July 23rd, Professor Li Wei’an, who is the president of Tianjin University of Finance and Economics and the Dean of China Academy of Corporate Governance in Nankai University, released the amendment on the Code of Corporate Governance for Listed Companies in China. Current Code of Corporate Governance for Listed Companies in China was released in the year of 2002, which had a significant influence on the development of the corporate governance framework in China. However, with the revision of the current Companies Act and Securities Act and the fast development of corporate governance practices, the Code of Corporate Governance has become out of line and failed to guide the current corporate governance practices well, even obstructed the “going out” strategy of Chinese companies.
Recent years, frequent occurrence of typical corporate governance events, while arousing the public's heated discussion about governance issues, also reflects the urgent needs of the society to revise the Code of Corporate Governance for Listed Companies. In order to achieve the goals of corporate governance of China from “details” to “general”, from “irregular” to “regular”, from “China” to “world”, it is necessary to meet the needs of the society that corporate governance of China keep up with the times to reflect the trends of international corporate governance. According to the existing rules of the legal system, Professor Li Wei’an led the research team with the research achievements in the field of governance for a long time to modify current code involving all sections of shareholders, controlling shareholders, board of directors, board of supervisors, performance appraisal, stakeholder and information disclosure, and also added guidelines for green governance, institutional investors, hostile takeovers, diversity of directors, cross-listing, etc. The amendment proposed to revise 18 articles, adding 43 articles, totaling 61 articles. The amendment summarizes the experience of corporate governance practice in China, identifies the new direction of corporate governance reform, and perfects the new stage of China's corporate governance from "event driven" to "rule guidance".
Li Wei’an expressed the hope that through the revision of Code of Corporate Governance for Listed Companies, implementing the Code to correspond with international and domestic laws, and guiding China’s corporate governance practices.