Malaysia Corporate Governance Analysis

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2.2 Malaysian Code on Corporate Governance 2012 Malaysian Code on Corporate Governance(MCCG) 2012 which been released by Securities Commission(SG) on 29 March 2012, has sets out specific recommendations on structures, broad principles and processes which companies should adopt in making good corporate governance an integral part of their business dealings and culture. An excellent achievement towards corporate governance by promoting good compliance and corporate governance culture as well as strengthening self and market discipline is one of the objectives of MCCG. There are about eight principles which followed by 26 corresponding recommendations had being set out by the MCCG 2012. The principles that had being set out by the MCCG 2012…show more content…
So that, directors code of ethics take center stage as a major concern of the modern era as most of the business are dealing with an international business. The earlier opinion stated that a business cannot be ethical, but this opinion is not used anymore in the modern business. Today business has belief that they must be responsible for social since they live and operate within a social…show more content…
Basically, the formulation of code of ethics of directors is in order to enhance the standard of corporate behavior as well as corporate governance. Based on the Companies Act 1965 in Section 132 (1), directors must act bona fide in the interest of the company which means they must have good faith in everything that they does within their company or use their power for a proper purpose for the sake of their company. Act bona fide in the interest of the company means that the interest of a group of company, employees, shareholders as well as the creditors. Thus, Companies Act 1965 in Section 132 (1) requires the director to at all times act honestly and use reasonable diligence in the discharge of the duties of his office. So it shows that the values of trustworthiness and honesty are the values that include in the establishment of The Director's Code of Ethics which held or upheld by any one person. The implementation of the code of ethics will make the company to recognize the vital importance of the company in conducting their business. It is subjected to the highest ethical standards as well as in full compliance with all applicable
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