Malaysia Code on Corporate Governance

The Malaysian Code on Corporate Governance was developed by the Working Group on Best Practices in Corporate Governance. The code provide an initiative to the private sector that there is a standards that employer and employees can review on it. The code presents regulation that initiate employees the duties that must follow in the company. According to Securities Commissions(2007), self regulation was preferable and the standards developed will be more acceptable and thus more enduring.

The code set up the principles and practices for the entire employees in a company about the structures and performances of a company that may help a company to operate its function towards achieving optimal governance framework. Based on the Securities Commissions(2007), the code issues include composition of board, procedures for recruiting new directors, remuneration of directors, the use of board committees and their activities.

According to Securities Commissions(2007), the important of the code that serve as one of the standards review for employees is that it provide more constructive and flexible working conditions response to raise standards in corporate governance when it is compared to black and white paper by statute or regulation.

This is good to practices in a company that people can follow the code and work with more discipline under the code. Moreover, it provides more efficiency in the working performance and people are well managed under a big company by following the code.