Presentation to the Presentation to the APEC Finance and Central Bank APEC Finance and Central Bank

Deputies MeetingDeputies Meeting

Prof. Stephen Y. L. CheungProf. Stephen Y. L. Cheung

PECC Taskforce on Peer Assistance PECC Taskforce on Peer Assistance and Review Networkand Review Network

PARNETPARNET

Washington, USAWashington, USA

1 May 20011 May 2001

ObjectivesObjectives

Mechanisms for promoting corporate Mechanisms for promoting corporate governance reformsgovernance reforms

Cooperation and coordination between Cooperation and coordination between economieseconomies

Key initiatives for promoting corporate Key initiatives for promoting corporate governancegovernance

IDEA.netIDEA.net

IInstitute of nstitute of DDirectors of irectors of EEast ast AAsiasia

1.1. Chinese TaipeiChinese Taipei

2.2. Hong Kong, PRCHong Kong, PRC

3.3. IndonesiaIndonesia

4.4. KoreaKorea

5.5. MalaysiaMalaysia

6.6. PRCPRC

7.7. SingaporeSingapore

8.8. ThailandThailand

9.9. The PhilippinesThe Philippines

Consultation ProcessConsultation Process

Market ParticipantsMarket Participants– AnalystsAnalysts– Funds managersFunds managers

Corporate DirectorsCorporate Directors RegulatorsRegulators

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1.1. A joint distance learning (video A joint distance learning (video conference) with the World Bank conference) with the World Bank Institute, 22-24 February 2001Institute, 22-24 February 2001

BeijingBeijing BangkokBangkok SingaporeSingapore ManilaManila WashingtonWashington

Action learning approachAction learning approach Interaction with different economies in AsiaInteraction with different economies in Asia Local case studiesLocal case studies ParticipantsParticipants

– RegulatorsRegulators– Corporate DirectorsCorporate Directors– AcademicsAcademics

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2.2. Joint distance learning session at least Joint distance learning session at least every two monthsevery two months

– The next one will be held on May 30The next one will be held on May 30

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3.3. Training the trainer program in Singapore Training the trainer program in Singapore in Junein June

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4.4. Three documents for consultation:Three documents for consultation:

A.A. Guidelines for Boards of DirectorsGuidelines for Boards of Directors

– On the role and responsibility of Boards of On the role and responsibility of Boards of DirectorsDirectors

B.B. Elements of a Code of Corporate Elements of a Code of Corporate GovernanceGovernance

a.a. Board IssuesBoard Issues

b.b. Board Remuneration:Board Remuneration:

c.c. Financial Reporting Transparency and AuditFinancial Reporting Transparency and Audit

d.d. StakeholdersStakeholders

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C.C. A Proposed Framework for a Code of A Proposed Framework for a Code of Proper Practice for DirectorsProper Practice for Directors

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5.5. Corporate governance scoreboardCorporate governance scoreboard

– Measurement method on the soundness of Measurement method on the soundness of corporate governancecorporate governance

Summary Results for Bank/Publicly-Listed Corporation: ______________________ Date: ______________________

SCORECARD FOR CORPORATE GOVERNANCE

Stockholder RightsWeight: 20%Score:

TransparencyWeight: 20%Score:

Total Score

100%

AuditingWeight: 15%Score:

Commitment to CGWeight: 15%Score:

Board GovernanceWeight: 30%Score:

6.6. Assist China PECC in holding a Assist China PECC in holding a consultative meeting on corporate consultative meeting on corporate governancegovernance

7.7. Reaching out to the private sector to invite Reaching out to the private sector to invite high profile, top representative to be in the high profile, top representative to be in the East Asia subcommittee of PSAG (WB-East Asia subcommittee of PSAG (WB-OECD Private Sector Advisory Group)OECD Private Sector Advisory Group)

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