Adequate and effective corporate governance (CG) can be critical for supporting boards and management to navigate through uncertainty in the international business arena.

Yet, a joint study by ACCA Singapore and KPMG in Singapore reveals a wide divergence in CG requirements across 25 markets, including; Singapore, Australia, Thailand, China and Brazil.

Titled, Balancing Rules and Flexibility, the study also calls on governments to work towards meeting global CG standards, which are based on the Organisation for Economic Co-operation and Development (OECD) principles.

Said Irving Low, Head of Risk Consulting at KPMG in Singapore which spearheaded the study: "When implemented well, corporate governance builds confidence in capital markets. This is especially important in the context of high anticipated growth rates in many emerging economies such as those in the ASEAN region.

"Given the disparity in corporate governance requirements across the markets we have studied, there is still a long journey ahead of us. We hope this study can contribute to raising the standard of corporate governance requirements globally." 

Commenting on the findings of the report, Richard Rekhy, CEO, KPMG in India said "This reflects the improving standard of corporate governance in India over the years. The results of the study are testimony that these are resonating well with key stakeholders and their perception of the governance standards in India is also improving."

Further he added, "The Indian regulators have taken significant steps to raise the bar on governance in Indian companies by bringing in a paradigm shift in corporate governance requirements, both in the Companies Act 2013 and the recently revised clause 49 of SEBI's listing agreement. In particular, the changes relating to the role and responsibilities of the audit committee, the roles of independent directors, and the codified duties of directors as a whole, are leading to a shift in boardroom dynamics.

"There is also a mindset change in how key players in the governance framework engage with other stakeholders including minority shareholders. These, when implemented, can position India even higher in the ranking. It is now time for corporate India to follow corporate governance not only in form but in spirit."
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