Corporate governance codes: a comparison between Malaysia and the UK

This paper highlights several major aspects of the proposed Malaysian Code and contrasts them with UK Corporate Governance Codes. Comparisons are made on their origins, compliance, board structure and key committees. Preliminary findings suggest that UK Codes are voluntary and largely business driven whereas the proposed Malaysian Code, is regulatory driven. It suggests a more highly regulated business environment in Malaysia to ensure effective compliance and enforcement. As many Malaysian listed companies are owned by controlling and substantial shareholders who heavily influence the appointment of chief executive officers, improvements in the corporate governance standards are essential to protect minority shareholders, restore investor confidence and conform with national socio-economic objectives.