...Regulatory Framework and Legal Aspects of Corporate Governance The objective of these two sessions is to give students the opportunity to explore the concept of corporate governance. In particular, we will look at the development of the concept of corporate governance in Singapore with a focus on the regulatory framework for corporate governance in Singapore and the Singapore Code of Corporate Governance 2005 and 2012. We will also examine the various legal and regulatory mechanisms which exist to facilitate good corporate governance practice as well as other perspectives of corporate governance. We also hope to introduce to students some of the more pertinent issues and trends in this field. As part of our ‘E-learning week’, there will be online lectures for students to view. Students will also be expected to do some independent study and research into the topic, which will form the base for the mid-term written assignment. At the end of the e-learning sessions, students should have a working understanding of: • What is meant by ‘corporate governance’; • Key milestones in the development of corporate governance in Singapore; • The regulatory framework for corporate governance in Singapore; • The interaction between Company Law and corporate governance; • Key regulatory mechanisms for Corporate Governance in Singapore; and • The provisions and operation of the Singapore Code of Corporate Governance 2012 Readings Many articles have been...
Words: 398 - Pages: 2
...This paper examines the association of corporate governance variables and IPO pricing. Results show that managerial ownership is positively related to both offer price and market price premium, which is consistent with a high level of managerial ownership reducing agency costs leading to a closer alignment of interests between managers and shareholders. High blockholder ownership is positively related to offer price premium but not market price premium which implies that underwriters, but not investors, perceive that the quality of the IPO is associated with blockholder ownership. Board size is negatively associated with both measures of IPO pricing, suggesting that smaller boards are better. The other conventional corporate governance variables are not significant. Family ownership and family management are negatively related to both offer price and market price premium, which is consistent with the suggestion that the lack of separation of ownership and management causes family-controlled firms to suffer from cloudy financial vision, resulting in a negative relationship with pricing. However, family chairman is positively associated with offer price premium which implies that underwriters view family leadership on the board as beneficial. The other family governance variables are not significant. None of the board expertise variables examined are significantly related to IPO pricing. I. Introduction The launching of an initial public offering (IPO) is a pivotal event...
Words: 4139 - Pages: 17
...Introduction Singapore- officially the Republic of Singapore, is a Southeast Asian island city. Singapore was founded as a British trading colony in 1819. It joined the Malaysian Federation in 1963 but separated two years later and became independent. Though physically small, Singapore is an economic giant. Singapore has been Southeast Asia's most modern city for over a century. Singapore has a highly developed and successful free-market economy. Since independence, Singapore is the world's fourth leading financial centre, and its port is one of the five big ports in the world. The economy depends on exports and refining imported goods, especially in consumer electronics, information technology products, pharmaceuticals, and on a growing financial services. Real GDP growth averaged 8.6% between 2004 and 2007. In the global financial crisis, Singapore rebounded quickly 14.8% in 2010, with per capital GDP equal to that of the leading nations of Western Europe and the third highest per capital income in the world. Singapore has attracted foreign investments in technology production and will continue efforts to establish Singapore as Southeast Asia's high-tech hub. Entrepreneurship Independent of the stage of economic development, entrepreneurship plays a significant role for the expansion, job creation and overall economic health within a country. Entrepreneurship is relatively common in Singapore, with the country taking pride in a sense that the country was built on entrepreneurial...
Words: 1063 - Pages: 5
...National Kidney Foundation (NKF) of Singapore INTRODUCTION “Power tends to corrupt and absolute power corrupts absolutely.” Lord Acton National Kidney Foundation (NKF) was established way back 1969 as part of the cell under the Singapore General Hospital due to the arising numbers of kidney related disease victims in Singapore. That cell not only responsible for treating the kidney patients but also taking up the challenges on research as well as educating the community on kidney disease. NKF has officially opened their first dialysis centre at the Kwong Wai Shiu Hospital in 1982 and throughout they have gone ups and down before emerge as a premier charity organisation in Singapore. By July 2005, Singaporean were shocked when the news of NKF scandal broke following the collapse of defamation trial. It is unexpected due to the fact the NKF has already recognise as a lead charity organisation with the revenue of $116 million. Lots of allegation were slandering around and the spot light goes to the then NKF CEO, Mr Thambirajah Tharmudurai or better known as T.T. Durai. The news not only rock the nation but also has attracting interest of global parties. The scandal has cause the CEO and his board of Directors to resign. Therefore, this case study is significant for the group to analyse the organizational leadership issues and challenges. AIM The aim of this study is to analyse the case of National Kidney Foundation scandal in the context...
Words: 3713 - Pages: 15
...12 buSineSS review insight into each of our business units SuSTainabiliTy and governance information on our organisation structure, management team, corporate governance, risk management and sustainability efforts 16 24 30 36 Board of Directors Organisation Structure Management Committee Senior Management Sustainability and Governance Philosophy Corporate Governance Investor Relations Risk Management Philosophy and Approach Sustainability 39 44 45 48 49 50 70 72 80 Group Consumer Group Enterprise Group Digital L!fe Key Awards and Accolades performance our performance at a glance financialS audited financial statements for the year ended 31 march 2014 89 91 92 Directors’ Report Statement of Directors Independent Auditors’ Report Consolidated Income Statement Consolidated Statement of Comprehensive Income Statements of Financial Position Statements of Changes in Equity Consolidated Statement of Cash Flows Notes to the Financial Statements 102 110 111 112 113 114 116 120 123 addiTional informaTion Shareholder and corporate information, as well as contact points for our offices worldwide Interested Person Transactions Shareholder Information Corporate Information Contact Points 205 206 208 209 Group Five-year Financial Summary Group Value Added Statements Management Discussion and Analysis ovERviEw ANNUAL REPORT 2014 BUSiNESS REviEw SUSTAiNABiLiTy AND govERNANCE PERFoRmANCE FiNANCiALS ADDiTioNAL iNFoRmATioN 1 our vision To be Asia...
Words: 84138 - Pages: 337
...Limited has adopted GRI Global 4 Sustainability Reporting Guidelines in their sixth Sustainability Report and is an audited by an independent third party, Ere-S Pte. Ltd. specializing in business sustainability and provide independence assurance for this report. The report is based on GRI Global 4 Sustainability Reporting Guidelines, in accordance with the Core level requirements outlined in the G4’s reporting standards. This Report has successfully completed the GRI Materiality Disclosures service which verifies that the General Standard Disclosures G4-17 to G4-27 were correctly located in both the GRI Content Index and in the text of this Report. Introduction CapitaLand is one of Asia’s largest real estate companies and listed in Singapore. It has integrated developments including shopping malls, service residences, offices and...
Words: 2029 - Pages: 9
...Key is another important guiding principle of governance that Singapore practices. Singapore takes care to select leaders that have outstanding personal qualities such as honesty, moral courage and integrity, in addition to having talent. Potential leaders are specially selected and groomed. Singapore needs good leadership not only in government but also in every segment of the society. They must be able to make good decision that is the best for Singapore, even when the public is not in favour of them. For example, Ong Teng Cheong, who recommended the pro-MRT campaign which were objected by the others as they felt that the bus system should be prioritized over MRT. However, he argued that an efficient MRT system could help in enhancing image of Singapore and increase overall living conditions of the people which was proven after it was built. It became the most commonly used transport with more than 2.5 million people riding it everyday on average. This was attributed to Ong Teng Cheong’s moral courage to stand up and ive his point strongly even when faced with strong objections. Good leaders are able to make choices and plans to improve the lives of people, the nation and the latter grows to new heights. Good leaders will also inspire the people and thus be able to carry the people with them when decisions (even tough and less popular ones) are made for the good of the country. Thus, leadership is important if Singapore is to continue to prosper and face up to the challenges...
Words: 2097 - Pages: 9
...The statement ‘everything depends on the psychology of investors’ is useful in explaining the AFC. It started with Thailand, where the overvalued baht was pegged to the US dollar. An appreciation of the USD put strain on the Thai government’s position to maintain the peg, and coupled with Thailand’s current account deficit, investors and currency speculators suspected an imminent devaluation. The loss of investor confidence and speculation led them to dispose of their baht for the USD, and the baht further depressed in value. By this time, the Thai government was no longer able to maintain the overvalued baht, and international capital flew out of the country, compounding the decline of stock and property market indices. The government was forced to release the peg, which triggered off the AFC. The loss of investor confidence was like a contagion that spread over the region- many investors did not just invest in one country, but in multiple countries in SEA, and the situation in Thailand had them pulling out of investments in the other countries as well when they re-assessed the risk factors in Thailand’s neighbouring countries and saw similar symptoms afflicting them. Indonesia was the next to be hit by speculative runs after Thailand. Thailand suffered from a -54.6% rate of change in the value of its baht against the USD, but Indonesia suffered the wildest fluctuation in the value of the rupiah, with a -83.6% rate of change. This contagious loss of confidence and panic effect...
Words: 1405 - Pages: 6
...This essay seeks to explore the national rhetoric of resilience central to the counter-terrorism efforts in Singapore. The case of SG-Secure will be illustrated as a national campaign that seeks to rally communal effort in the fight against terrorism. The shift from a risk-centric language to a resilience framework can be understood in two ways. First, it is an avoidance of the fundamental issues of terrorism. Second, resilience rhetoric can produce positive outcomes for both the community and against terrorism. Finally, the paper argues that resilience should be inspected in a cautious lens as over-reliance on the resilience framework can lead to unwanted social exclusion. Terrorism: A Shift from Risk Based Language to Resilience 9/11 was...
Words: 1666 - Pages: 7
...ended Sept 30, as expenses outpaced revenue growth. | SMRT fined $200,000 for security breach Straits Times, 19 October 2011, 703 words, Royston Sim, (English) THE Land Transport Authority (LTA) has fined rail operator SMRT $200,000 for the Bishan depot security breach which left a train vandalised in August. SMRT Q2 profit plunges 25.6% Business Times Singapore, 29 October 2011, 469 words, Michelle Tan, (English) Operating expenses rise 15.5% as electricity and diesel costs surge 44% RISING energy prices continued to take their toll on SMRT Corp, with its net profit falling 25.6 per cent year on year to $34.1 million for the second quarter ended Sept ... companies; SMRT tops in corporate governance study SMRT Corp has come out tops in a study of the corporate governance practices of Singapore-listed firms. The study was done by United States-based business consultancy Resources Global Professionals (RGP), which scrutinised the public records of the 30 companies that make up the Straits Times Index. The companies were scored based on several factors, such as their compliance with the Code of Corporate Governance, structure of their boards, what directors are paid in comparison to employees, and how much information the company discloses about itself and its involvement in community projects and events. | WHAT WENT WRONG: COMMUNICATION; We could have done better: SMRTStraits Times, 17 December 2011, 740 words, Royston Sim, (English)Communication and training of...
Words: 324 - Pages: 2
...State-Owned-Enterprise Governance in China: the Role of the State LL.M. Long Paper Harvard Law School Supervised by Prof. Reinier Kraakman and Mark Roe April 2012 Oversea Listing and State-Owned-Enterprise Governance in China: the Role of the State Yinzhi Miao Abstract: There are both considerate horizontal and vertical governance problems in the Chinese state-owned-enterprises (SOEs). Due to their privileged positions in the political economy, traditional institutions of corporate governance are far from perfect. Thus the value of oversea listing as a governance mechanism is highlighted, and that could be better revealed by a deeper analysis of the benefit-and-cost balance by the government which controls the SOEs. However, effective as it is, oversea listing could not be a marvelous antidote to all governance ills. Further, as the two major governance disasters of oversea listed SOEs shows, if the government lacks a proper self-positioning, nontrivial negative implications will be brought to SOEs governance via oversea listing. The ultimate function of corporate governance in SOEs thus relies heavily on public governance. Key words: state-owned-enterprises, oversea listing, corporate China governance, 2 Table of contents I. Introduction ....................................................................................................................4 II. The Governance problems of Chinese SOEs and the limitations of traditional governance problems ..........
Words: 30398 - Pages: 122
...26.91 In the others category – Private corporate bodies, Non-resident Indians and overseas corporate bodies etc. comprises 20.30 % stake. It would be interesting to analyse the shareholding pattern in light of the fact that role of any large shareholder in corporate governance is to the extent which outsiders block holders can mitigate agency costs arising from insider control. So in case of APL it would be of interest to measure the extent of control exerted by particularly institutional investors relative to that exercised by insiders. As FIIs, insurance companies hold a major chunk of institutional investors and also as constituents of this group of investors are considered to have similar interests and objectives, they are likely to coordinate their decision and actions while the investors under Non-institutional are primarily dispersed shareholders making coordinated decisions costly. The potential for institutional activism therefore in APL, is limited to some extent where through their block holding they can act as countervailing force against promoter. But when we see the ownership structure in contrast to its primary competitor BPL, Asian paints presents a much better picture in terms of any governance issues which may arise. Major Stock Events: 1. May 2010 – Robust volume growth with substantial improvement in operating margins ~ 19% (best in last 6 years...
Words: 505 - Pages: 3
...development experiences of Southeast Asia that have been considered high-growth economies, as well as East Asia countries. The Southeast Asia economies have been rather successful in applying public policies to realize their chosen developmental objectives, from the viewpoint of better advancing the course of human development, will be identified. II. East and Southeast Asia (ESA) economies • Human Development (HD): As well as being substantially different in the starting level of human development achieved, and although all have made substantial progress over the two decades, these economies show marked differences in the pace of this progress. Being already high-achieving, Japan recorded a modest rate growth of 0.26%, Singapore 0.61% and South Korea 0.92%. This pattern appears to exactly mirror the pattern of difference in their initial. Improvements in other less developed ESA economies are mixed. While China was behind Indonesia and the Philippines in 1990, it overtook them in 2007. Vietnam was behind China at the starting year, while its rate of growth is actually below that of China over the period. Malaysia was ahead of...
Words: 1616 - Pages: 7
...reduce poverty within the country. Singapore joins both IMF and World Bank under the Bretton Woods Agreements Acts in 1966, 3 August. Before we join to become IMF as a member, during the Singapore-Malaya separation, we had sought for their technical assistance and to act as a broker in the negotiation with Malaysia for a common currency and banking system. In order to so, IMF first conducted a preliminary study to identify the concerns of Singapore and Malaysia regarding the common currency issue. IMF then acts as a broker in the final round of negotiations between 10 June 1966 and 5 July 1966. Before joining World Bank as a member, Singapore had sought for 2 loans where the first loan of US$15 million was used for the construction of the first phase of the Pasir Panjang ‘B’ Power Station and the second loan of US$6.8 million was used to construct Johor River Water Project. As a pre-requisite for the loan, the World Bank then requested our government to set up statutory authority (Public Utilities Board [PUB]) to manage the utilization and repayment of the loan. The advantages of Singapore joining as a member are being able to buy gold or other currencies from IMF instead of going for drastic monetary policies domestically when we face with imbalance of payments, being a member will enhance confidence in our monetary policies as it indicates that our government had agreed and will follow the fund’s practices on the face value of the Singapore currency and exchange...
Words: 1951 - Pages: 8
...been carried out by various researchers in different countries. So far majorities of the researchers shows that the extent of corporate disclosure is negatively associated with a higher management of ownership structure and the extent of corporate voluntary disclosures is positively related with a higher institutional ownership structure. But findings also show that the negative relationship is weaker if the firm has a higher proportion of independent non- executive directors. Introduction Ownership Structure is a mechanism that aligns the interest of Shareholders and Managers. Corporate governace is the capstone of the activities that can reduce agency costs. Corporate mangers disclosure policies are influenced by firm’s ownership and governance on the level of various types of information disclosure. This is a summary of literature review on ownership structure and corporate disclosure. Studies have shown that ownership structure can be state, legal, managerial and block holder depending on the countries and cultural environment. Blockholder ownership is the percentage of shares held by substancial shareholders( that is shareholdings of 5% or more). Jensen and Meckling (1976) argue that substancial shareholders are expected to have both greater power and incentives to monitor management, as their wealth is tied to the form’s financial performance. Managerial ownership is the proportion of ordinary shares held by senior managers, including directors and supervisors. The extent...
Words: 1450 - Pages: 6