Singapore proposes shake-up of corporate governance code

SINGAPORE, June 14 (Reuters) - Singapore proposed a shake-up of its corporate governance code on Tuesday, calling for company boards to take a more active role in checking financial statements and forcing more disclosure of management pay.

The city-state's Corporate Governance Council has set out 15 proposals following an 18-month review, including a new provision that the board must comment on whether it has received assurances from a company's CEO and chief financial officer on the accuracy of the financial statements.

The move comes at a time when accounting standards, particularly of some foreign-listed Chinese firms, are under close scrutiny after some scandals involving financial irregularities.

"This effort is critical to maintaining investor confidence, and to enhance Singapore's reputation as a leading and trusted international financial centre," the Council said in a statement.

The revision to the code includes proposals stating that the pay of all directors and the chief executive should be disclosed on a named basis. The aggregate pay handed out to the top five management staff aside from the CEO should also be disclosed.

On board independence, the Council proposed that if the chairman and CEO roles are filled by the same person, if they are immediate family members or if they are both part of the management team, then at least half of the directors should be independent.

The proposed new code is open for comment until July 31, when it will then be sent to the Monetary Authority of Singapore who will decide how to implement it. (Reporting by Rachel Armstrong; Editing by Muralikumar Anantharaman)