Resilience in Governance was the theme of the Institute’s 75th Anniversary Celebration, held on 31 January. CGj reviews the insights shared at the event about the Institute’s 75-year journey and its contribution to building resilience in governance in Hong Kong and the Mainland.

The first informal association of Chartered Secretaries in Hong Kong was set up back in 1949 and had 20 members. Fast forward three quarters of a century and today’s Hong Kong Chartered Governance Institute (HKCGI), the successor to that association, has over 7,000 members, and over 3,000 graduates and students. It has grown in reputation and stature as the qualifying body for members of the governance profession in Hong Kong and the Mainland, as well as a thought leader in all matters relating to good corporate governance and corporate secretaryship. 

The Institute’s longevity stands in contrast to the shrinking lifespan of companies in recent times, as attested by studies by both McKinsey and Credit Suisse. Over the period of the Institute’s evolution to its current form, companies have had to adapt to many disruptions and challenges, and there has been an increasing recognition that good governance is essential for long-term resilience. Resilience in Governance was therefore a highly apt theme for the Institute’s 75th birthday celebrations.

Resilience in Governance: the Institute’s theme for 2024 

2024 in fact marks a double anniversary for the Institute. In addition to celebrating 75 years since that first association of Chartered Secretaries was established in Hong Kong, it is also celebrating 30 years since the incorporation of The Hong Kong Institute of Chartered Secretaries (HKICS), the precursor of today’s HKCGI.

Launching the anniversary celebration, Institute Chief Executive, Ellie Pang FCG HKFCG(PE), introduced the theme of the evening. She pointed out that the Institute and its members have risen to many challenges over the last three-quarters of a century. Most recently, the Covid pandemic required the Secretariat team to reinvent the Institute’s CPD services as online and hybrid events to comply with the restrictions on large gatherings. She commended the Secretariat team for keeping the Institute’s operations going during the pandemic, ensuring business as usual in very unusual circumstances.

‘Looking back at the challenges the Institute has faced in its 75-year journey, I think it is most appropriate to describe the Institute and its members as resilient,’ she said.

The Institute’s newly elected President, David Simmonds FCG HKFCG, who followed Ms Pang to the podium, also addressed the resilience theme. He spoke about the pivotal role played by good governance in increasing the likelihood that organisations, commercial and otherwise, can survive in the long term. For this reason, he expressed confidence that, despite the substantial risks facing organisations globally, there will be continued opportunities for the Institute and its members to thrive in the years ahead.

‘Good governance, which our members support and implement as governance professionals, has become a central concern for most organisations in Hong Kong, the Mainland and internationally. As an institute, we must continue to seize these opportunities for our members and improve our efforts in the face of an uncertain economic outlook. For this reason, Resilience in Governance is our theme for 2024,’ he said.

He also made the point that the Institute does not work alone. He thanked both those within and outside the Institute, many of whom were attendees at the anniversary celebration, for supporting the Institute in its work. The fruits of this partnership are particularly evident, he pointed out, in the Institute’s thought leadership and advocacy work. ‘At HKCGI we take pride in our thought leadership and the contribution we make to supporting reforms that help improve the market in Hong Kong,’ Mr Simmonds said.

Most recently, the Institute was instrumental in the implementation of Hong Kong’s revised re-domiciliation regime for non–Hong Kong incorporated companies and the recent Companies Ordinance amendments that allow Hong Kong companies to adopt virtual meeting technology. Both of these legislative reforms were championed by the Institute.

Similarly, Mr Simmonds mentioned the way that the Institute worked jointly with Hong Kong Exchanges and Clearing Ltd (HKEX) to organise a series of seminars on directors’ training at the HKEX Connect Hall in 2023.

The Institute has also partnered with many other individuals and organisations in its research work. This has resulted in an archive of highly useful and well-respected research publications, available in the Research Papers page of the Thought Leadership section of the Institute’s website. Upcoming research is already underway or planned on supply chain management, retirement age and sustainability governance, with leading organisations as collaborators, he added.

Looking ahead, Mr Simmonds said the Institute remains fully committed to supporting the ongoing development of capability in the market through its work in training and thought leadership. A new development here has been the launch of the Institute’s certification courses in key areas of governance practice. This includes the launch of the Institute’s ESG Reporting Certification Course last year, which has already produced over 1,300 graduates, thereby helping to improve ESG reporting capacity and competency in the market. This year will see the launch of a new AML/CFT Certification Course designed along similar lines.

Partners in governance 

Mr Simmonds’ comments about the value of partnership in the Institute’s work was backed up by the Guest of Honour at the anniversary celebration. In his keynote speech, The Honourable Paul Chan Mo-po, GBM GBS MH JP, Financial Secretary of the HKSAR Government, and Fellow of the Institute, spoke about the joint efforts of the Institute and government to boost governance standards in Hong Kong and thereby improve its standing as an international financial centre.

‘The Institute has done a lot of good work over the years. It establishes its thought leadership through thematic research and studies, and provides valuable professional training and support to its members. Most importantly, it is a staunch partner of the government. From corporate governance to ESG and anti–money laundering, the Institute has been providing sound advice and contributing to the government’s policy formulation and implementation,’ he said.

He also addressed the resilience theme, pointing out that this theme is equally relevant to the way Hong Kong has weathered many crises in its past. ‘We are firmly in the post-pandemic economy now. That said, we have a new and equally complex set of challenges to overcome. An enduring high-interest-rate environment is affecting asset prices and investment appetite. Geopolitical tensions have led to greater protectionism and geoeconomic fragmentation,’ he said.

Nevertheless, he added that Hong Kong has good reason to be optimistic about the future. It emerged stronger and more resilient from past setbacks, such as the Asian financial crisis of 1998 and the global financial crisis in 2008, demonstrating its ability to rise to challenges and strengthen its defences when tested.

In conclusion, he welcomed the Institute’s contributions to the many areas of legislative and regulatory reform that the government will be working on in the years ahead. ‘For 75 years now, the government and the financial services industry have looked to the Institute for insight and invaluable support. My congratulations to you and we look forward to continuing our close collaboration in the decades to come. May I also wish you all the best of health, business and good governance in the promising new Year of the Dragon. Let’s make this dragon fly,’ Mr Chan said.

HKCGI Prize 2023

The Institute’s recent anniversary celebration was the ideal opportunity to announce the latest awardee of the HKCGI Prize – the highest honour and peer recognition in the governance profession. Edith Shih FCG(CS, CGP) HKFCG(CS, CGP)(PE), Honorary Adviser to Council, Past International President and Institute Past President, introduced this year’s awardee at the event – Dr Anthony Neoh QC SC JP FCG HKFCG.

‘Our awardee is a renowned and revered scholar, legal practitioner, arbitrator and capital markets expert who has made a most significant impact, not only in the legal arena, but also in the capital markets and regulatory regime of both the Mainland and Hong Kong. This awardee is a staunch supporter of our Institute, providing invaluable advice and guidance, as well as opening doors for the Institute here and in the Mainland throughout the past many years, and helping to steer the Institute’s outreach in the Mainland,’ she said.

She was followed to the podium by Dr Neoh. He set out two reasons for accepting the award. ‘Firstly, the award is an occasion to renew our belief and our faith in the community of Hong Kong that has nurtured us and given us all the opportunities that have enabled each of us to become what we are today,’ he said.

He added that he himself was one of the many beneficiaries of these opportunities. Dr Neoh started his working life at a time when Hong Kong was growing rapidly to become an international commercial and financial centre. He spent 13 years working in the Civil Service, eventually becoming Assistant Director of the Independent Commission Against Corruption. 

He left the Civil Service in 1980 and has been a barrister ever since. During that time he was also very active in public service. His many public appointments included stints as Chairman of the Hong Kong Securities and Futures Commission and Chief Advisor of the China Securities and Regulatory Commission.

The second reason for his acceptance of the award is highly relevant to members of the governance profession. ‘This award brings us together to renew our belief in the common enterprise that we have been engaged in, which is the pursuit of excellence in corporate governance,’ he said.

He added that, while practitioners of governance need of course to concern themselves with ‘the myriad technicalities of the endeavour’, they should not lose sight of the fact that the central idea of corporate governance is leadership – and leadership is a collaborative endeavour.

‘In all my work to date, in fact from my first day at work, I have either had to lead, or be part of a team whose members were far more experienced or accomplished than I was. I learned that it is always the best policy to learn from others to respect the views of others and that it is always better to be a good listener than a good giver of orders,’ he said.

Good leadership is about enabling team members to make the best contribution they can. Leaders who think they know everything, or more than others, do not deserve their positions in leadership, he said. Ultimately, practitioners of governance should bear in mind that governance is a human enterprise and works best where every team member receives due respect and dignity.

‘Let us therefore renew our belief in the dignity of every human soul and rededicate ourselves to our common enterprise in the pursuit of excellence in corporate governance. In so doing, we also rededicate ourselves to a common effort to serve the community that has sustained us in the past. The present gloom will undoubtedly pass as a new page in history opens up, as it surely will, before our eyes. This is China’s century and we are all lucky to be living in it,’ he concluded.