As COP26 ends in Glasgow, there could be growing pressure on
companies to review their objects and for joint ventures to review
their goals. Malaysian regulators such as the Securities Commission
and Bursa Malaysia are already thinking of setting higher standards
of disclosures in relation to ESG and sustainability for listed
companies.
The need for objects clause in companies' constitutional
documents has been removed in many jurisdictions around the world
(including in Malaysia with our Companies Act, 2016) but companies
are usually allowed to self-impose their own objects. The idea has
emerged1 to use this option to require directors to
undertake that their company's business and activities align
with specified climate ambitions in line with the goals of the
UNFCCC's Paris Agreement2.
