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Public Bank Bhd and Bursa Malaysia Bhd won the Overall Excellence Award of the Malaysian Corporate Governance Index 2009 (MCG Index) for their achievements in practising the highest level of corporate governance standard. The new MCG Index serve as a premier index for investors to gauge corporate governance levels of public-listed companies in Malaysia.

Organised by the Minority Shareholders Watchdog Group (MSWG), the award ceremony was hosted during DEC 2009 in conjunction with the unveiling of the list of 100 companies in the Malaysian Corporate Governance Index 2009 with 64.36 in total index. MCG Index is an extension of MSWG’s corporate governance survey collaboration with Nottingham University Business School.

Under a survey conducted by MSWG on 899 public-listed companies for the MCG Index, 60.7% had achieved corporate governance score of more than 50%. According to reports, this is an improvement over previous years’ performances, reflecting positive efforts and commitment to improve corporate governance best practices.

Government-linked companies led in highest corporate governance score from foreign multi-national companies and state-linked companies. The survey also found 60% or 535 companies separated the chairman and chief executive officer posts to be held by different individuals while 30% of the companies had independent directors as chairman. At the international level, there have been moves towards encouraging companies to have at least 50% independent directors on boards.

The findings revealed only 19% or 174 companies had boards comprising more than half of independent directors while slightly below half or 46.6% had identified a senior independent director to whom concerns could be conveyed.

Malaysian Corporate Governance Index 2009 Roll of Honours
Overall Excellence Award: Public Bank Bhd & Bursa Malaysia Bhd
Best AGM Conducted In 2009: Public Bank Bhd, Telekom Malaysia Bhd & Sime Darby Bhd
Distinction Award: British American Tobacco (M) Bhd, CIMB Group Holdings Bhd, LPI Capital Bhd, Malaysia Airports Holdings Bhd, Media Prima Bhd, PLUS Expressways Bhd, Sime Darby Bhd, Telekom Malaysia Bhd & Tenaga Nasional Bhd
Best Corporate Social Responsibility Practices: Digi.com Bhd
Most Timely Held AGM: LPI Capital Bhd
Best Mid-Capitalisation Company: Media Prima Bhd & Naim Holdings Bhd
Best Small-Capitalisation Company: Symphony House Bhd, Uchi Technology Bhd & Hai-O Enterprise Bhd
Merit Awards: Axiata Group Bhd, Digi.com Bhd, IJM Corporation Bhd, KNM Group Bhd, RHB Capital Bhd, Symphony House Bhd, Tanjong Public Ltd Co & UMW Holdings Bhd