Presentation to the APEC Finance and Central Bank Deputies Meeting Prof. Stephen Y. L. Cheung PECC Taskforce on Peer Assistance and Review Network PARNET Washington, USA 1 May 2001

Objectives Mechanisms for promoting corporate governance reforms Mechanisms for promoting corporate governance reforms Cooperation and coordination between economies Cooperation and coordination between economies Key initiatives for promoting corporate governance Key initiatives for promoting corporate governance

IDEA.net Institute of Directors of East Asia Institute of Directors of East Asia 1. Chinese Taipei 2. Hong Kong, PRC 3. Indonesia 4. Korea 5. Malaysia 6. PRC 7. Singapore 8. Thailand 9. The Philippines

Consultation Process Market Participants Market Participants –Analysts –Funds managers Corporate Directors Corporate Directors Regulators Regulators

Actions 1.A joint distance learning (video conference) with the World Bank Institute, February 2001 Beijing Beijing Bangkok Bangkok Singapore Singapore Manila Manila Washington Washington

Action learning approach Action learning approach Interaction with different economies in Asia Interaction with different economies in Asia Local case studies Local case studies Participants Participants –Regulators –Corporate Directors –Academics Actions

Actions 2.Joint distance learning session at least every two months –The next one will be held on May 30

Actions 3.Training the trainer program in Singapore in June

Actions 4.Three documents for consultation: A. Guidelines for Boards of Directors – On the role and responsibility of Boards of Directors

B. Elements of a Code of Corporate Governance a. Board Issues b. Board Remuneration: c. Financial Reporting Transparency and Audit d. Stakeholders Actions

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

Actions 5.Corporate governance scoreboard –Measurement method on the soundness of corporate governance

Summary Results for Bank/Publicly-Listed Corporation: ______________________ Date: ______________________ SCORECARD FOR CORPORATE GOVERNANCE Stockholder Rights Weight: 20% Score: Transparency Weight: 20% Score: Total Score 100% Auditing Weight: 15% Score: Commitment to CG Weight: 15% Score: Board Governance Weight: 30% Score:

6.Assist China PECC in holding a consultative meeting on corporate governance 7.Reaching out to the private sector to invite high profile, top representative to be in the East Asia subcommittee of PSAG (WB- OECD Private Sector Advisory Group) Actions

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