What the new Malaysian corporate governance code will mean for companies

Multiple-choice questions: In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again

  1. The Malaysian Code on Corporate Governance (MCCG) 2017 is the fourth installation of the corporate governance code in Malaysia. When were the previous versions of the Code issued?

  2. Which of the following describes the applicability and scope of the MCCG 2017?

  3. The MCCG 2017 takes on a new approach to promote greater internalisation of corporate governance culture and encompasses which of the following new features?

  4. Which of the following is NOT the Principle of the Malaysian Code on Corporate Governance (MCCG) 2017?

  5. Certain areas of the MCCG 2017 have also incorporated Step-up practices. Why have these Step-ups been incorporated into the New Code?

  6. The MCCG 2017 acknowledges that all listed companies are not the same and therefore the new code provides flexibility and proportionality in the application of certain best practices. Certain practices are applicable only to Large Companies. Section 2.6 of MCCG 2017 defines Large Companies as -

  7. A distinct feature of the New Code is the CARE approach, where companies have to set out the processes involved in practising good corporate governance; including providing fair and meaningful explanation of how the company has applied the practices laid out in the code. What does the Comprehend element of CARE entail?

  8. To facilitate the Report element of the CARE approach within the New Code, companies must provide meaningful explanation on how it has applied each Practice. Where there is a departure from a Practice, companies are required to explain or report on the following, EXCEPT -

  9. Which of the following is TRUE about the Structure of the Malaysian Code on Corporate Governance (MCCG) 2017?

  10. Which of the following best describes a Step-up practice related to Effective Audit and Risk Management - Risk Management and Internal Control Framework