The Hong Kong Institute of Certified Public Accountants is inviting entries to its 2014 Best Corporate Governance Disclosure Awards, the most prestigious benchmark of Hong Kong's corporate governance standards.
The deadline for entries is 14 August 2014.
Institute president Clement Chan, says, the Institute continues to play a leading role in corporate governance advocacy in Hong Kong, as the Best Corporate Governance Disclosure Awards heads into its 15th year.
“Successful capital markets and strong corporate governance go hand in hand; and this in turn affects Hong Kong’s competitiveness, so the importance of these awards is clear,” he says.
This year, the awards will also look into how companies are implementing the new Code provision on board diversity which took effect in September last year.
Another of the Institute's initiatives is a new online guide to better corporate governance disclosure, which encourages companies to think about the underlying aims and philosophy of key sections in Corporate Governance Code, under the listing rules.
One of the main themes covered in the guide is risk management and internal control and the need to see them as parts of the same picture.
The awards has also consistently emphasized the importance of both these elements.
According to Chan, "Good risk management and effective internal control processes and disclosures are indicative of a well-managed company and help give comfort to shareholders and investors that the business is unlikely to face any sudden, unpleasant surprises."
The importance of risk management with internal controls as an integrated part of it has been picked up in the Hong Kong Stock Exchange’s latest consultation proposals on revamping the internal control requirements under the Code.
The stock exchange, citing a survey by a reputable accounting firm, indicates that more than 80 percent of institutional investors are willing to pay a premium for companies with good risk management practices and many have passed up on opportunities to invest in companies with insufficient risk management.