Business : SC Explores Taskforce To Strengthen Company Secretaries’ Competency, Accountability

The Securities Commission (SC) is considering the establishment of a multi-stakeholder taskforce aimed at enhancing the competency and accountability of company secretaries in listed companies, according to SC chairman Datuk Mohammad Faiz Azmi. The taskforce would involve regulators and professionals to create a standardized competency framework for company secretaries, reflecting the evolving nature of their role.

Faiz made these remarks at the CGI Global Governance Summit 2026, where he noted that company secretaries are now expected to serve as trusted advisers, assist in board decision-making, and provide a critical voice within the organization.

This initiative stems from feedback gathered during the SC's consultations on the revised Malaysian Code on Corporate Governance (MCCG) 2026, which is set to be released this year. Faiz emphasized that company secretaries are no longer solely responsible for ensuring legal compliance and maintaining corporate records. Their modern role encompasses that of a facilitator for effective board decision-making and providing a constructive internal perspective.

He highlighted the importance of company secretaries in situations where the easiest course of action may not be the most appropriate, even suggesting that asking the right question can be more crucial than knowing the correct answer.

As board expectations rise, the responsibilities of governance professionals must also evolve, Faiz stated. He acknowledged that while company secretaries are subject to regulatory oversight, their competency standards are inconsistently applied. The SC is collaborating with Bursa Malaysia on the regulatory framework for company secretaries of listed companies, which includes fit and proper requirements and accountability measures.

These efforts are part of a broader strategy to strengthen Malaysia's corporate governance ecosystem in response to growing complexities arising from technological disruption, artificial intelligence, evolving sustainability expectations, geopolitical uncertainty, and increasing stakeholder demands.

Faiz stressed that good governance does not stem from a single framework, institution, or individual. Instead, it requires a collaborative ecosystem that prioritizes trust, accountability, and sustainable value creation. He concluded by emphasizing that meaningful outcomes depend on the judgment, integrity, and actions of those entrusted with the task of implementing these principles.