On 14 June 2024, the Stock Exchange of Hong Kong Limited (“Exchange“) published a consultation paper proposing amendments to the Corporate Governance Code (“CG Code“) and related Rules governing the listing of securities on the Exchange (“Listing Rules“) (“Consultation Paper“).

The proposals set out in the Consultation Paper aim to strengthen the corporate governance (“CG“) of listed companies, with a focus on board effectiveness and independence, diversity, risk management and capital management.

If the proposals below are adopted, it is expected that they will come into effect on 1 January 2025, and apply to CG reports and annual reports published from the year 2026 onwards. A three-year transition period is expected to be put in place for certain proposals as stated below.

The key proposals are summarised as follows:-