Hong Kong lags at the rear of on the share of woman administrators on the boards of shown firms

HKICS difficulties a ‘Call to Action’ for regulatory imposition of a 30% concentrate on to be accomplished more than a six-calendar year period for Hong Kong

HONG KONG, Feb. 9, 2021 /PRNewswire/ — The Hong Kong Institute of Chartered Secretaries (HKICS) has currently revealed a evaluation report (Review) entitled, ‘Missing Chances – a Assessment of Gender Range on Hong Kong Boards’ supported by the contributors and organisations indicated under. The Assessment calls for the imposition of a 30% focus on for gals on boards (WOBs) about a six-yr period of time.

Evaluation Findings

The Overview finds:

• That the level of representation of WOBs of Hong Kong stated businesses is very poor. Only one particular in seven of the administrators of the fifty Hang Seng Index corporations is a girl. Throughout all Hong Kong detailed businesses, women comprise only 14.2% of all directors. One particular 3rd of all those businesses have no women at all on their boards.

• That the level of WOBs is also weak by comparison to other jurisdictions, such as the British isles (34%), and in just APEC, Australia (32%), Malaysia (27%), India (18%), and Singapore (17%).

• Development in increasing the representation of woman directors has been glacial. Around the previous 10 yrs, the proportion of gals directors has risen only from 10.5% to 14.2% – an maximize of fewer than half a proportion place for every 12 months. At this price, gender parity on Hong Kong boards will not be attained until finally about 2091, if at all.

Ms Gillian Meller FCG(CS, CGP) FCS(CS, CGP), President of HKICS said in relation to gender diversity that: ‘This matters. It issues for the reason that gender board variety is well recognised as contributing to more productive boards and better company functionality. It matters due to the fact the less than-illustration of women of all ages on our boards fails to meet up with the criteria of an worldwide economical centre. It matters as an difficulty of fairness and equality. It matters mainly because Hong Kong companies are lacking the prospect to make entire use of the talent offered to serve on their boards and Hong Kong females are missing the chance to acquire their careers and serve the Hong Kong corporate group. And it matters to our Institute as a promoter of excellence in governance and as a varied organisation ourselves – two-thirds of our users are women of all ages.‘

Tale continues

A Phone to Motion

The Institute recognises that significant and meaningful variations to the regulation of the gender composition of the boards of mentioned corporations would ideal arrive from a constructive discussion and broad-primarily based help. On the other hand, Hong Kong’s functionality in this spot is so lousy and progress so gradual that regulatory change is now necessary to reach change.

The Institute therefore proposes that the Hong Kong Corporate Governance Code is amended to incorporate a goal of a minimum 30% female illustration on boards. To give shareholders and boards time to change to this focus on, a six-yr changeover period of time would be set. The goal would be voluntary, but only in the sense that it will be subject matter to a ‘comply or explain’ routine. Both of those for the duration of and immediately after the changeover time period, businesses who do not comply will be needed to disclose the precise factors for this, the particular techniques they intend to consider to reach compliance and the timeframe.

In its Critique, the Institute expresses its self esteem that prepared-capable and able female candidates are accessible to consider up far more board seats in Hong Kong. Ms Meller states that “It is inconceivable that, somehow, Hong Kong women of all ages are considerably less equipped than all those somewhere else. Female board talent is there – shareholders just will need to glance for it.”

Supporting Contributors and Organisations

The Critique has benefited from the assist of some of Hong Kong’s leading company governance experts and practitioners, as listed underneath. The views of each individual of these, generally in forceful phrases, are expressed in the Critique.

As Ms Meller observes, there is a common concept throughout all these contributions: “The latest standing of board gender diversity in Hong Kong is unacceptable and unsustainable. Motion is desired that motion should be meaningful and the time for action is now“.

About The Hong Kong Institute of Chartered Secretaries

(Included in Hong Kong with restricted liability by warranty)

The Hong Kong Institute of Chartered Secretaries (HKICS) is an impartial specialist human body devoted to the marketing of its members’ position in the formulation and powerful implementation of good governance policies, as properly as the growth of the career of Chartered Secretary and Chartered Governance Professional in Hong Kong and in the course of the mainland of China (the Mainland).

HKICS was to start with founded in 1949 as an affiliation of Hong Kong customers of The Chartered Governance Institute (CGI), formerly acknowledged as The Institute of Chartered Secretaries and Administrators (ICSA) of London. It was a branch of CGI in 1990 ahead of attaining neighborhood status in 1994 and has also been CGI’s China Division due to the fact 2005.

HKICS is a founder member of Corporate Secretaries International Affiliation (CSIA), which was founded in March 2010 in Geneva, Switzerland. In 2017, CSIA was relocated to Hong Kong in which it operates as a enterprise constrained by promise. CSIA aims to give a world-wide voice to company secretaries and governance experts.

HKICS has additional than 6,000 customers and 3,200 learners.

For a lot more info, make sure you go to www.hkics.org.hk.

Authors of the Overview

Peter Greenwood FCG(CS, CGP) FCS(CS,CGP) (Fellow, HKICS)
Mohan Datwani FCG(CS, CGP) FCS(CS,CGP)(PE) (Deputy Main Executive, HKICS)

Supply The Hong Kong Institute of Chartered Secretaries