The Hong Kong Institute of Directors Archives

HKIoD Organises Directors’ Conference 2022 – “From Resilience to Sustainability”

The Hong Kong Institute of Directors (HKIoD) hosted Directors Conference 2022 yesterday at the Hong Kong Convention and Exhibition Centre. With the HKSAR and also HKIoD both celebrating their 25th anniversary, the conference this year extended to a full day, featured 11 sessions including power talks and in-depth panel discussions held physically and online with 430 attendees in all.

Directors’ Conference 2022 held physically and online with 430 attendees in all.

Opening address by The Honourable Michael Wong, GBS, JP, Deputy Financial Secretary

In his closing speech, Mr Christopher Hui, GBS, JP, Secretary for Financial Services and the Treasury thanked the HKIoD for organizing this meaningful conference.

Welcoming participants to the event, Dr Christopher To, Chairman of HKIoD, said, “In the last five years, Hong Kong has continued to rank high in competitiveness or as a global financial centre in the world, suggesting that Hong Kong is somewhat resilient amid adversities including the pandemic. However, as there are still many looming uncertainties, we must not be complacent. We should learn the true meaning of resilience and gain skills in implementing sustainability initiatives and engaging stakeholders in developing sustainable business practices in such VUCA times.” Citing the HKIoD Corporate Governance Scorecard, Dr To noted that Hong Kong listed companies have been improving in corporate governance over the past 16 years while the demands have been increasing as per global trends.

The conference brought together 21 world-class business and community leaders, scholars and policy makers to share their insights on a spectrum of topics, including (1) Fusion of People, Ideas and Technology; (2) Roadmap of Driving for Excellence; (3) Hong Kong’s Role as an IFC in RMB Internationalisation; (4) Non-profits’ Business Purpose; (5) Driving a Top-notch Financial Market; (6) The Board to Lead in Climate Governance; (7) Leading to Survive and Thrive in Challenges; and (8) The Rule of Law in Doing Business Going on to 2047.

Dr Carlye Tsui SBS JP, Chief Executive Officer, HKIoD, said: “Crises can make an organisation stronger and more resilient when its leaders have the determination, foresight and wisdom to turn the tide and triumph over turbulence. We should all be seeking proven measures to help our organisations fend off challenges and achieve true sustainability.” Learning from COVID-19, Dr Tsui noted the global director perspective that the top items on board agenda are broader risk-set, enhanced ESG and greater stakeholder communication. She also advised that in this digital age, boards should regard technological change with a strategic perspective, continuing learning and assessment of the leadership and culture readiness for it.

About The Hong Kong Institute of Directors
The Hong Kong Institute of Directors is Hong Kong’s premier body representing directors to foster the long-term success of companies through advocacy and standards-setting in corporate governance and professional development for directors. A non-profit-distributing organisation with membership consisting of directors from listed and non-listed companies, HKIoD is committed to providing directors with educational programmes and information service and establishing an influential voice in representing directors. With international perspectives and a multi-cultural environment, HKIoD conducts business in biliteracy and trilingualism. Website: http://www.hkiod.com.

Media Enquiries:
Strategic Public Relations Group
Brenda Chan +852 2114 4396 brenda.chan@sprg.com.hk
Chak Yau +852 2114 4395 chak.yau@sprg.com.hk

The Hong Kong Institute of Directors
Odessa So +852 2889 4988 odessa.so@hkiod.com
Joanne Yam +852 2889 1414 joanne.yam@hkiod.com

Nomination Opens for “Directors Of The Year Awards 2020”

Themed “Vanguard in Challenging Times”

The Hong Kong Institute of Directors (“HKIoD”) has announced that its annual “Directors Of The Year Awards 2020” is open for nominations today. Last year, the US-China trade war and ongoing social unrest have plunged Hong Kong’s economy into a recession. This year, the coronavirus pandemic has paralysed the global economy, but at the same time accelerated the development of major business trends such as cloud online offices and e-commerce. A series of shifts have tested the adaptability and leadership skills of the Hong Kong business leaders. The Awards this year are themed “Vanguard in Challenging Times”, and honour the outstanding directors and boards who have successfully shown their leadership skills and led their companies through difficult times in an unpredictable environment.

Dr Christopher To, Chairman of HKIoD, said, “‘The HKIoD Corporate Governance Scorecard’ recently launched points out that companies with improved corporate governance standards have experienced relatively smaller declines in market valuation, demonstrating the direct relationship of corporate governance standards to the ability to survive under adversity. We always emphasise that corporate governance is a dynamic process, and good corporate governance needs to continually improve to better respond to the market situation, particularly persevering in the face of adversity. With this year’s theme, I hope the creative thinking and calm attitude of the awardees can inspire the industry and directors how to find a way through the difficulties.”

Mr Kenneth Wong, Chairman of 2020 Directors Awards Organising Committee, said “There is no performance index to accurately measure the leadership skills of business leaders. Figures in the report such as profit, cost or return on investment can be affected by different variables across specific industries as well as external factors. When the judges assess the outstanding directors, they evaluate on how the directors establish excellent corporate governance procedures, build company culture, lead the company to accomplish the goal together as well as undertake accountability to stakeholders . I hope the theme this year can recognise the most outstanding directors in Hong Kong and enhance the overall corporate governance standards in Hong Kong by sharing their stories, particularly in surviving or even thriving in such times of challenge”

Dr Carlye Tsui, CEO of HKIoD, said, “In the face of the current unsettled situation, business leaders must fully understand the latest market situation, in order to make the right decision at the crucial moment and to lead their firms to avoid crisis. HKIoD provides a platform for directors to learn and share, so that they can keep abreast of market trends and to ensure they are provided with adequate information in order to make wise decisions.”

Nomination for the Awards will close on 31 July 2020. The Panel of Judges comprises leaders, professionals and regulators in Hong Kong. Director Of The Year Awards 2020 recognises excellence in the following categories:

Company Categories
1. Listed Companies
2. Non-Listed Companies
3. Statutory/Non-Profit-Distributing Organisations*

Director Categories
1. Executive Directors
2. Non-Executive Directors
3. Boards

Notes: *A non-profit-distributing organisation is defined as an organisation in which profits are not distributed to its shareholders, members, directors, employees or any other persons, with objectives including, but not limited to, charitable welfare, social service, health and medical care, education, research, trade and industrial alliance, professional advancement, self-help support etc.

The selection criteria for winners in the Individual Director Categories include successful pursuit of strategic corporate business/non-profit functions, contribution to board effectiveness in strategic planning and monitoring of performance, implementing compliance, risk control and accountability measures, managing change and succession, leadership and other attributes and qualities, including continuing professional development for directors, business ethics and other achievements. As for the Collective Board Categories, judging criteria include board composition, effectiveness in pursuing strategic functions of corporate business/non-profit aspects, development and execution of strategic plans and monitoring of performance, implementing compliance, risk control and accountability measures, managing change and succession, development of the board, effectiveness of board committees, business ethics and other achievements.

The Awards nomination form and related information are available on The Hong Kong Institute of Directors website at www.hkiod.com.

About Directors Of The Year Awards
First launched in 2001, Directors Of The Year Awards were the first ever such Awards organised in Asia. The project has now become an annual project of impact in the community. The objectives are to recognise directors and board of directors for outstanding director practices and corporate governance, to publicise the significance of good corporate governance and to promote awareness of good corporate governance and director professionalism in Hong Kong. Nominations are open to the public. As good corporate governance is vital to all types of organisations, and professional director practices are encouraged from directors in all board roles, the Awards recognise excellence in categories by company types, including listed companies, private companies and statutory/non-profit-distributing organisations, and categories by roles, including Executive Directors, Non-Executive Directors and Boards. For more details on the previous years’ Awards, please visit http://www.hkiod.com/dya-awardees.html.

About The Hong Kong Institute of Directors
The Hong Kong Institute of Directors is Hong Kong’s premier body representing directors to foster the long-term success of companies through advocacy and standards-setting in corporate governance and professional development for directors. A non-profit-distributing organisation with membership consisting of directors from listed and non-listed companies, HKIoD is committed to providing directors with educational programmes and information service and establishing an influential voice in representing directors. With international perspectives and a multi-cultural environment, HKIoD conducts business in biliteracy and trilingualism. Website: http://www.hkiod.com.

Media Enquiries:
Strategic Public Relations Group
Eveline Wan +852 2864 4822 eveline.wan@sprg.com.hk
Brenda Chan +852 2114 4396 brenda.chan@sprg.com.hk
Chak Yau +852 2114 4395 chak.yau@sprg.com.hk
Fax: +852 2114 4948

Directors Of The Year Awards 2020 Enquiries:
The Hong Kong Institute of Directors
Odessa So +852 2889 4988 odessa.so@hkiod.com
Moni Ching +852 2889 1414 moni.ching@hkiod.com
Fax: +852 2889 9982

HKIoD Announces Corporate Governance Scorecard 2020

The Hong Kong Institute of Directors (“HKIoD”) has today announced the results of the “2020 HKIoD Corporate Governance Scorecard”. A highlight is that the mean Corporate Governance Index (CGI) score of the 2020 Scorecard has increased to 78.44 compared with 71.82, in the most recent survey announced in 2016, indicating significant improvement in Hong Kong corporate governance standards. In line with the survey results, HKIoD recommends that companies should aim to move from minimum compliance to more actively implement best practices. Besides, HKIoD advises listed companies that greater disclosure as a self-initiative drives better corporate governance.

Since 2004, the Scorecard has been compiled by HKIoD every three to four years. The report is sponsored by the Corporate Governance Development Foundation Fund, and conducted by the Centre for Corporate Governance and Financial Policy at Hong Kong Baptist University, led by Prof Aris Stouraitis, with Prof Stephen YL Cheung, President of the Education University of Hong Kong, as advisor.

The research team has surveyed 135 firms from the constituents of four major Hong Kong stock indexes, researching company data in the public domain for the financial year 2018. As with previous surveys, the evaluation criteria were based on international standards (OECD Principles of Corporate Governance) and the Hong Kong Exchanges and Clearing Limited’s Code of Corporate Governance Practices. The firms were evaluated on five aspects: (A) Rights of Shareholders; (B) Equitable Treatment of Shareholders; (C) Role of Stakeholders; (D) Disclosure and Transparency; and (E) Board Responsibilities.

Based on the benchmarks mentioned, the top-10 firms with the highest CGI scores follow in the numerical order of the stock code:
CLP Holdings (2) Hang Seng Bank (11)
MTR Corporation(66) Hang Lung Properties (101)
China Everbright International (257) HKEX (388)
Link Real Estate Investment Trust (823) Lenovo Group (992)
COSCO Shipping Ports (1199) Standard Chartered (2888)

Dr Christopher To, Chairman of HKIoD, said, “HKIoD expects to provide better access to the corporate governance standard of local listed companies through compiling and publishing the HKIoD Corporate Governance Scorecard. The results can be used to help raise awareness of companies, policy makers, investors and the public as as to whether companies in Hong Kong are maintaining international standards of corporate governance. The results of this study show that while we are raising the benchmark, it is encouraging to note that corporate governance standards of listed companies in Hong Kong continue to advance. We sincerely hope that these companies will keep up the good work, especially if directors can implement excellent corporate governance in every aspect under the unprecedented challenges that Hong Kong is currently facing. We trust that directors can achieve an even more outstanding result in the next survey results through their continued efforts.”

Professor Stephen YL Cheung, President of The Education University of Hong Kong, said, “In this survey, we have increased the number of questions to respond to the latest changes in the corporate governance requirements and our findings show that most companies have improved their basic corporate governance standards. Importantly, when the market was down, we have found that companies with improved corporate governance standards experienced smaller declines in market valuation compared to companies with no improvement in corporate governance standards. However, while corporate governance is a dynamic process, with new best practices continuously emerging, the survey results reflect that many companies are still lagging in their implementation of the latest trends.”

Dr Carlye Tsui, CEO of HKIoD, said, “Investors and regulators now expect higher standards for directors, and HKIoD compiles and reports the Corporate Governance Scorecard on a regular basis to develop clear, concrete and quantifiable standards of corporate governance for firms to follow. In addition, the quality of the board of directors is closely related to corporate governance performance. Therefore, we organise over 160 courses of director training every year, with the scope covering the latest rules and regulations and strategy development, so as to keep directors abreast of market trends. We will carefully heed the findings of specific topics and recommendations in the latest Scorecard in updating relevant educational and training programmes for directors.”

To order the full report on the Corporate Scorecard 2020: http://www.hkiod.com/scorecard.html

About Centre for Corporate Governance & Financial Policy at Hong Kong Baptist University
The mission of this cross-disciplinary research centre is to improve the quality of public debates and policies on major corporate governance and related financial policy issues, and to promote best practice in the area. It aspires to be a centre of excellence on corporate governance studies in the region. Website: ccgfp.hkbu.edu.hk

Contact
The Hong Kong Institute of Directors
Moni Ching
Tel: 2889 1414
Fax: 2889 9982
Email: moni.ching@hkiod.com

Media Enquiries
Strategic Public Relations Group
Brenda Chan/Chak Yau/Chloe Yik
Tel: 2114 4396 / 2114 4395/ 2114 4931
Fax: 2114 4948
Email: brenda.chan@sprg.com.hk
chak.yau@sprg.com.hk
chloe.yik@sprg.com.hk

Financial Reporting Amidst the Coronavirus Outbreak

The Hong Kong Institute of Directors (HKIoD) calls on listed company directors to faithfully discharge their duty as they tackle financial reporting tasks amidst the outbreak.

On 4 February, the Securities and Futures Commission and the Stock Exchange of Hong Kong issued a Joint Statement in relation to results announcements in light of travel restrictions related to the severe respiratory disease associated with a novel infectious agent.

The coronavirus outbreak will likely affect some issuers’ plan and progress in preparing financial information for their results announcements. Many of our fellow directors are facing a difficult situation.

HKIoD had the opportunity to have an in-depth joint discussion with teams from the SFC (led by Mr Brian Ho, Executive Director, Corporate Finance), the Stock Exchange (led by Ms Bonnie Y Chan, Head of Listing) and the Financial Reporting Council (led by Dr Kelvin Wong, Chairman). From the discussion, HKIoD gained some insights and has some comfort and assurance to bring to our fellow directors.

The very purpose of the Joint Statement is to keep as much as possible the orderly and continuous running of the Hong Kong financial market. A blanket delay for financial reporting can have serious detrimental effect on the credibility of the Hong Kong market.

Under the Joint Statement, an issuer’s board may have to release financial information before the auditor can perform work. Based on our understanding, however, the regulators are fully mindful that this is a difficult situation affecting many. Directors need not become too worried so long as they have faithfully performed and discharged their duties.

We have the following guidance and advice for directors.
Link: www.hkiod.com/document/7Feb2020_final.pdf

For more News Releases & Responses to Public Issues by HKIoD, please visit: https://www.hkiod.com/newsrelease.html
.
Media Enquiries
Ms Moni Ching (+852 2889 1414; moni.ching@hkiod.com)

The Hong Kong Institute of Directors Announces Winners of Directors Of the Year Awards 2019 at Its Annual Dinner

The Hong Kong Institute of Directors (“HKIoD”) announced the winners of the Directors Of the Year Awards (“DYA”) 2019 during its annual dinner last night held at the Hong Kong Convention and Exhibition Centre. This year’s main theme for HKIoD is “Embracing Innovation for Sustainable Growth”, closely related to two main topics affecting the business world in recent years. The first is how to establish effective governance procedures and corporate culture to ensure the company keeps updated about the latest information, and integrated with innovation when technologies are advancing daily. The second is how to maximise the impact of their actions while implementing sustainable development and fulfilling corporate social responsibility. To address these concerns, innovation is the driver of development and the catalyst for the sustainable advancement of a company. This year, 14 winners, including directors and boards, have demonstrated the vision and courage to lead their teams towards innovation and express care for the well-being of the community and the next generation while creating value for their company.

The event commenced with an opening speech by Dr Christopher To, Chairman of HKIoD. The Hon James Lau, Secretary for Financial Services and the Treasury Bureau, was invited again to serve as Guest of Honour and to deliver a speech.

Dr Christopher To, Chairman of HKIoD, said, “Innovation can be likened to the acceptance and open-mindedness to flexibly adopt new concepts to business, rather than just taking action. A person’s imagination is often constrained by his or her background and experience. If creativity in a company is only led by its management and passed to the teams for implementation the results may not be satisfactory. Ideally an innovative company should have a vibrant structure and corporate culture, allowing every staff member, regardless of position or tenure, to think out-of-the-box and express their opinions through an effective established channel, and may be rewarded handsomely for their contribution. This year’s winning directors and board members have shown how a creative mindset can lead to the development of a dynamic company. We hope that their experiences can serve as worthy examples for their industries, so that in addition to its status as an international financial centre and a cosmopolitan metropolis, Hong Kong will soon be recognised as the ‘City of Innovation'”.

Mr Vincent Chan, Chairman of the Organising Committee of DYA 2019, said, “The concept of sustainable development has started rather late in Hong Kong, but fortunately the pace has accelerated in recent years. While it is easy for a company to learn about sustainable development, it is truly a challenge to master. Anyone who wants can try, but how to effectively do so and benefit more people is actually a sophisticated art. In view of this, the Organising Committee has added ‘sustainable growth’ to this year’s award theme, hoping to honour those conscientious directors who are keen on giving back to the community and striking a balance between profit and fulfilling their social responsibility; inspiring more passionate players in the commercial sector”.

Dr Carlye Tsui, CEO of HKIoD, said, “While successfully conducting business in a fast-changing world, company leaders must constantly gain new knowledge in order to make wise decisions during critical moments. The training provided by HKIoD is in step with the latest business trends, providing access for directors to the most current information and knowledge, helping them maintain high corporate governance standards under all circumstances and seize new opportunities for growth. In the past 22 years since inception of HKIoD, in addition to providing training for directors with offering on the latest information, practices and guidelines, HKIoD has served as the voice of directors on related issues. We have also provided a platform for directors to benefit from collective wisdom and mutual encouragement at all times, particularly during challenging moments. Directors can then adopt appropriate strategies and draw on positive energy in order to lead the growth of their companies”.

The winners of the DYA 2019 in the various award categories are listed below.

Listed Companies Categories
Executive Directors
– Mr Lee Seng Jin
CEO, Samson Paper Holdings Limited
– Dr Ma Mingzhe
Chairman and CEO, Ping An Insurance (Group) Company of China, Ltd.
– Mr Yan Jianguo
Chairman, Executive Director and Chief Executive Officer, China Overseas Land & Investment LTD.
– Mr Yim Tsz Kit Jacky
Executive Director, S.A.S. Dragon Holdings Limited

Boards
– Board of Directors, Ping An Insurance (Group) Company of China, Ltd.

Non-listed Companies Categories
Executive Directors
– Mr Chan Kai Ho
Chairman, Storefriendly Self Storage Group Ltd.
– Ir Spencer Li
Director and General Manager, BlueOcean Pay
– Ir Tong Sidney Pui Keung
Executive Director, Lik Kai Engineering Co. Ltd. and Trustful Engineering and Construction Co. Ltd.

Boards
– Board of FSE Holdings Limited

Statutory/Non-profit-distributing Organisations Categories
Non-Executive Directors
– Mr Victor So Hing Woh SBS JP
Chairman of the URA Board, Urban Renewal Authority
– Mr Michael Wong Yick Kam MH JP FHKIoD
Member, Executive Committee & Past Chairman, Hong Kong Youth Hostel Association

Boards
– Board of Directors, The Australian International School Foundation Limited
– Board of Directors, Hong Kong Cyberport Management Company Limited
In addition: recognition of Excellence in Board Diversity
– Executive Committee of Scout Association of Hong Kong

About Directors Of The Year Awards
First launched in 2001, Directors Of The Year Awards were the first ever such Awards organised in Asia. The project has now become an annual project of impact in the community. The objectives are to recognise directors and board of directors for outstanding director practices and corporate governance, to publicise the significance of good corporate governance and to promote awareness of good corporate governance and director professionalism in Hong Kong. Nominations are open to the public. As good corporate governance is vital to all types of organisations, and professional director practices are encouraged from directors in all board roles, the Awards recognise excellence in categories by company types, including listed companies, non-listed companies and statutory/non-profit-distributing organisations, and categories by roles, including Executive Directors, Non-Executive Directors and Boards. For more details on the previous years’ Awards, please visit http://www.hkiod.com/dya-awardees.html

Media Enquiries:
Strategic Public Relations Group Limited
Eveline Wan +852 2864 4822 / eveline.wan@sprg.com.hk
Brenda Chan +852 2114 4396 / brenda.chan@sprg.com.hk
Chak Yau +852 2114 4395 / chak.yau@sprg.com.hk

Directors Of The Year Awards 2019 Enquiries:
The Hong Kong Institute of Directors
Odessa So +852 2889 4988 / odessa.so@hkiod.com
Moni Ching +852 2889 1414 / moni.ching@hkiod.com