Hong Kong: Code changes proposed by HKEX

The Hong Kong Stock Exchange published a consultation paper last Friday in which it set out significant changes to the Code on Corporate Governance Practices and amendments to the Rules Governing the Listing of Securities: see here (pdf). The amendments cover, amongst other things, directors' duties and time commitment, and a much greater role is proposed for non-executive directors. It is, for example, proposed that the remuneration and nomination committees should be chaired by an independent non-executive director. The paper sets out functions to be performed by a corporate governance committee (or an existing committee sharing and/or performing this function). The paper also proposes that shareholder approval at a general meeting should be required for any proposal to appoint an auditor or to remove an auditor before the end of his term of office.

Update (7 January 2010): see the consultation papers here.