Singapore Releases Shareholder Rights, Engagement Guidance

Singapore’s Corporate Governance Advisory Committee (CGAC) has issued practice guidance for listed companies on shareholder rights and engagement, as well as remuneration disclosures for senior management. The guidance is intended to help listed companies improve their shareholder communications and comply with new remuneration disclosure requirements. The shareholder rights guidance includes a detailed dividend policy, which CGAC said is necessary to ensure investors understand how the board stewards the company’s income to create value for shareholders. Companies should explain how cash generated is allocated, the objectives, risks and constraints considered, and why the allocation is appropriate. The dividend policy is a factor that investors consider when assessing the company’s expectations of future cash flows and the extent to which those can be used for reinvestment, dividends or other purposes. Singapore Exchange Regulation has already stipulated that, from the end of financial year 2024, companies should provide a detailed report that includes names, amounts and breakdown of remuneration paid to each individual director and the CEO by the issuer and its subsidiaries. In the new remuneration disclosure guidance, CGAC says companies should provide qualitative disclosures to explain their remuneration frameworks. Regarding variable remuneration, it says companies should disclose the objectives and key performance metrics that were used to determine the year’s variable or performance-related remuneration.

The practical information hub for asset owners looking to invest successfully and sustainably for the long term. As best practice evolves, we will share the news, insights and data to guide asset owners on their individual journey to ESG integration.

Copyright © 2024 ESG Investor Ltd. Company No. 12893343. ESG Investor Ltd, Fox Court, 14 Grays Inn Road, London, WC1X 8HN

To Top