BDO Hong Kong released the latest annual study – Corporate Governance Review (the Report), which is an extensive analysis of the corporate governance practices of major Hong Kong listed companies. This year we covered a total of 232 Hang Seng Composite Index (HSCI) companies in the review.
The Report found a continuous decline of companies stated that annual reviews of the effectiveness of their internal controls had been conducted. The declining trends are: Hang Seng Index (HSI) (from 100% in 2009 to 91% in 2011), HSCI (from 94% to 88%) and Hang Seng China Enterprises Index (HSCEI) (from 100% to 85% to 79%) companies. Moreover, fewer companies provided detailed explanations about their reviews of internal controls – only 15% of HSCI companies did so.
The Report also reviews the compliance with mandatory code provisions, recommended best practices of the Code on Corporate Governance Practices and particular subjects of interest.
To obtain the Corporate Governance Review report, please visit http://www.bdo.com.hk/publications_risk.php