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Internal Control Review on Corporate Governance

Annual corporate governance review on internal control systems

Boards of Directors of companies listed in Hong Kong are required to prepare an annual Corporate Governance Report (“CG Report”) addressing that they have provided adequate steps:

  • To maintain sound and effective internal controls in safeguarding the shareholders’ investments and companies’ assets (Code on Corporate Governance Practices “CCGP”: C.2).
  • To conduct a review on the effectiveness of the system of internal control of the companies and their subsidiaries annually and report to shareholders what they have done in their CG Report. The review should cover all material controls, including financial, operational and compliance controls and risk management functions (Code on Corporate Governance Practices “CCGP”: C.2.1).

Listed companies should disclose in their CG Report their compliance with the Code Provision on internal control during the report period to satisfy Appendix 14 and 23 of the Main Board Listing Rules as well as Appendix 15 and 16 of the Growth Enterprise Market (‘GEM’) Listing Rules (CCGP: C.2.4).

How we can help: 

The Board of Directors can appoint us to perform an independent review to evaluate the internal control environment of the companies and their subsidiaries annually in order to comply with the above Code. For internal control deficiencies identified, we can design practical action plans and assist the management of the company to implement them in an efficient and effective way.