On 19 December 2024, The Stock Exchange of Hong Kong Limited (the HKEX) published the Consultation Conclusions on the Review of the Corporate Governance Code and related Listing Rules (the HKEX Corporate Governance Consultation Conclusions). For a summary of the Consultation Paper, please see Charltons’ July 2024 newsletter.
From 1 July 2025, the proposed amendments will come into effect except for certain rules in relation to independent non-executive directors (INEDs). Rules concerning “overboarding” INEDs will be effective by the first annual general meeting held on or after 1 July 2028 except for new listing applicants, while a two-phased implementation over a six-year transition period will apply to the nine-year cap on tenures of INEDs. The HKEX will publish updated guidance on the HKEX’s Corporate Governance Practice Portal in the first half of 2025 to assist listed companies in complying with the new requirements.