Hong Kong Corporate Governance Code

Definition:

Contained in Appendix C1 to the Hong Kong Listing Rules and sets out the principles of good corporate governance, and two levels of recommendations: (i) code provisions; and (ii) recommended best practices.

Issuers are expected to comply with, but may choose to deviate from, the code provisions. In case of any deviation from the code provisions, however, issuers will need to provide considered reasons for the deviation and explain how good corporate governance was achieved by the alternative steps and actions taken by them. The recommended best practices are for guidance only. Issuers may also devise their own code on corporate governance on the terms they consider appropriate.

Issuers must state whether they have complied with the code provisions (as well as the considered reasons and explanations in respect of any deviation) for the relevant accounting period in their interim reports (and summary interim reports, if any) and annual reports (and summary financial reports, if any).

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