However, the way in which these fundamental principles are realized in practice must, by definition, vary from place to place, bearing in mind the differing economic, political, social and cultural contexts. The key role of these principles is to serve as a reference point for governments as they examine and develop their legal and regulatory frameworks for corporate governance that suits the individual needs of their economies. Within this overall framework, the theme of the Second Roundtable is disclosure. In my view, it is the most basic of corporate governance principles because potential investors and shareholders, big or small, must be given sufficient information to make informed decisions about their shareholdings and safeguard their interest in any given company. At the very least, one can say that better disclosure would have allowed both governments and companies to react to underlying economic problems in a more timely manner.
Disclosure therefore is a critically important element in the management of any modern economy.
I am particularly pleased that the co-hosts for the Second Asian Roundtable are the Hong Kong Society of Accountants, the Stock Exchange of Hong Kong and the Securities and Futures Commission. These three organizations have been at the forefront of the drive towards enhancing Hong Kong's corporate governance standards for many years. There are also other Hong Kong organizations and Government departments with vital roles to play in this area, such as the Hong Kong Institute of Company Secretaries, the Institute of Directors and the Hong Kong Monetary Authority. In particular, the Companies Registry has been, as one of its principal statutory duties, enforcing the disclosure provisions of our Companies Ordinance, thereby ensuring that corporate data on the half a million companies incorporated and registered in Hong Kong is available for public search. The timing of the Second Roundtable is very fortuitous as it will give a high profile here in Hong Kong to the subject of corporate governance at a time when we have just embarked upon a Corporate Governance Review.