Page 161 - SC SCAR 2023 ENGLISH Flipbook

STATEMENT ON GOVERNANCE
The SC is a statutory body established under the Securities Commission Malaysia Act 1993 (SCMA) to regulate and develop the Malaysian capital market. The SC’s mission is to promote and maintain fair, efficient and transparent securities and derivatives markets and to facilitate the orderly development of an innovative and competitive capital market. It is committed to ensure investor protection, fair and orderly markets, and monitor, mitigate and manage systemic risks arising from the capital market. The SC’s responsibilities, powers and authorities are clearly defined and transparently set out in securities laws, namely the SCMA, Capital Markets and Services Act 2007 (CMSA) and Securities Industry (Central Depositories) Act 1991 (SICDA).
ABOUT THE COMMISSION Board Members
The Board is responsible for the overall governance of the Commission. The Minister of Finance appoints Board members. The Board comprises a Chairman, a Deputy Chief Executive and seven other members who may include persons representing the government and private sector. The Chairman is entrusted with the day- to-day administration of the SC as provided by section 4B(1) of the SCMA.
Dato’ Seri Dr. Awang Adek Hussin assumed the position of Chairman on 1 June 2022. A profile of Board members is featured on pages 150 to 153 and their involvement in the various committees established by the Board is provided on page 161.
The Chairman is appointed for a term of three years, and is eligible for reappointment upon completion of his or her term. Other Board members are appointed for a term of two years, and are eligible for reappointment upon completion of the term.
A person is disqualified from holding the office of a Board member if he or she holds full time office in any public-listed company, becomes a member of either Houses of Parliament, or becomes an officer or director of an entity that is regulated by the Commission.
Similarly, a Board member shall not hold office if he or she–
• is convicted of a criminal offence involving fraud, dishonesty, corruption or violence;
• is declared a bankrupt;
• is not capable of discharging his or her duties;
• fails to attend three consecutive meetings of the Board without leave;
• conducts himself in such a way as to bring disrepute to the Commission;
• fails to disclose his or her interests; or
• becomes involved in any activity which may interfere with his or her independence in discharging his or her functions.
The SCMA requires a Board member to manage conflicts of interest by disclosing his or her interest in any matter under discussion by the Board or any of its committees. Once a disclosure is made, he or she–
• shall neither take part nor be present in any deliberation or decision of the Board or its committees; and
• shall be disregarded for the purposes of constituting quorum of the Board or its committees, relating to the matter.
Functions of the Commission
The functions of the Commission are the following–
• advise the Minister on all matters relating to the capital market;
• regulate all matters relating to the capital market;
• ensure that the provisions of the securities laws are complied with;
PART 5 ORGANISATION INFORMATION
SECURITIES COMMISSION MALAYSIA ANNUAL REPORT 2023 159