KUALA LUMPUR (July 3): The Securities Commission Malaysia (SC) has launched a public consultation on wide-ranging proposals to strengthen corporate governance, with feedback open from July 3 to July 31.

The proposals include tighter oversight and a potential formal registration framework for company secretaries of public listed companies (PLCs), a shareholder litigation fund to support legal action over corporate misconduct, and enhanced governance guidance for family-controlled listed firms.

To strengthen oversight of company secretaries, the SC is considering minimum qualification and training requirements, a standardised professional accreditation system, and a formal registration regime with ongoing regulatory oversight and possible disciplinary action.

For family-controlled PLCs, the SC is seeking feedback on additional governance guidance to encourage clearer separation between ownership and management, stronger succession planning, greater board independence, improved oversight of related-party decisions and stronger protection for minority shareholders.

The consultation paper also proposes clearer expectations on technology governance, particularly board oversight of artificial intelligence and cybersecurity. Listed companies would be required to disclose how they use and manage technology, including its role in business strategy, board oversight structures, risk management processes and how human oversight is maintained over AI-driven decisions.

The SC further proposed establishing a shareholder litigation fund, using resources from the Capital Market Development Fund (CMDF) to help shareholders pursue legal action against companies or directors for misconduct causing losses. The fund is intended to complement, not replace, regulatory enforcement.

The SC said the overall proposals aim to strengthen accountability, transparency and governance among listed companies in line with the Capital Market Master Plan 4.