KUALA LUMPUR (Aug 24): Contract manufacturer of automated industrial equipment Genetec Technology Bhd has secured approval from the Securities Commission Malaysia to transfer its listing to the Main Market, provided the group enhances its corporate governance by raising the number of independent directors on its board to over 50% and women directors to 30%.

The group, whose clientele include suppliers to electric vehicle behemoth Tesla, announced to Bursa Malaysia that the approval is subject to Genetec implementing “appropriate actions to remedy the non-adoption with Practices 5.2 and 5.9 of the Malaysian Code on Corporate Governance (MCCG)”.

“Genetec to proceed with the Proposed Transfer upon providing confirmation to the SC on the adoption with Practices 5.2 and 5.9 of the MCCG,” the filing read.

Practice 5.2 of MCCG requires at least half of a company’s board to comprise independent directors.

“For large companies, the board comprises a majority independent directors,” the code read, and large companies are defined as companies on FBM Bursa Malaysia Top 100 Index or with market capitalisation of RM2 billion and above.

Practice 5.9, meanwhile, requires boardrooms to comprise at least 30% women directors.

Genetec’s current boardroom consists of seven members, three of them are independent, with only one female on the board.

Shares of Genetec gained seven sen or 3.1% to RM2.36 on Thursday, giving it a market capitalisation of RM1.78 billion.