The corporate Governance Index (CGI) was launched on Tuesday by both the Minority Shareholder Watchdog Group (MSWG) and Bursa Malaysia. The objective is to provide some reliable gauge for investors to rate local public listed companies based on their level of adherence to globally accepted corporate governance standards. Companies will be rated based on conformance, performance and engagement in regards the various level of compliance to the exchange’s listing requirements including disclosure standards and fairness as well as transparent to their shareholders, and Malaysian code on Corporate Governance standards.
With this CGI launch, it should make the work of the professional liability underwriters easier in identifying the firm’s liability exposures and so on. This is definitely good news as Product liability, Professional Indemnity, Errors & Ommissions and Directors & Officers’ Liability can be much more efficiently underwritten. However the set back is that MSWG have yet to have a proper and tested methodology of working out those indices, and may therefore takes sometimes to materialise at an effective level.