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  • Monitoring and Enforcement of Module HC

    • HC-A.1.13

      Disclosure and transparency are underlying principles of Module HC. Disclosure is crucial to allow outside monitoring to function effectively. This Module looks to a combined monitoring system relying on the board, the listed company and CMSP's shareholders and the CBB.

      July 2011

    • HC-A.1.14

      The listed company and CMSP's board should support entrepreneurship but also ensure effective monitoring and control. Thus it is important that the board be composed of both Executive Directors and non-Executive Directors, including fully independent non-Executive Directors. It is the board's responsibility to see to the accuracy and completeness of the listed company and CMSP's corporate governance guidelines and compliance with Module HC. Failure to comply with this Module is subject to enforcement measures as outlined in the respective Licensing or Listing Module.

      July 2011

    • HC-A.1.15

      Given the reliance of Module HC on a flexible "comply or explain" approach in respect of guidance, shareholders, and in particular larger shareholders and institutional investors, should play an important role in evaluating a listed company or CMSP's corporate governance and should give weight to all relevant factors that come to their attention. Shareholders should carefully consider explanations given for deviations from Module HC and make reasoned judgments in each case. They should be prepared to enter into a dialogue with the board if they do not accept the listed company or CMSP's position, bearing in mind in particular the size and complexity of the listed company or CMSP and the nature of the risks and challenges it faces.

      July 2011