CORPORATE GOVERNANCE REPORT

STOCK CODE	:	Please input the Stock Code here
COMPANY NAME	:	Please input the Company Name here
FINANCIAL YEAR	:	Please choose the Date here

OUTLINE:

SECTION A – DISCLOSURE ON MALAYSIAN CODE ON CORPORATE GOVERNANCE

Disclosures in this section are pursuant to Paragraph 15.25 of Bursa Malaysia Listing Requirements.

SECTION B – DISCLOSURES ON CORPORATE GOVERNANCE PRACTICES PERSUANT CORPORATE GOVERNANCE GUIDELINES ISSUED BY BANK NEGARA MALAYSIA

Disclosures in this section are pursuant to Appendix 4 (Corporate Governance Disclosures) of the Corporate Governance Guidelines issued by Bank Negara Malaysia. This section is only applicable for financial institutions or any other institutions that are listed on the Exchange that are required to comply with the above Guidelines.

SECTION A – DISCLOSURE ON MALAYSIAN CODE ON CORPORATE GOVERNANCE

Disclosures in this section are pursuant to Paragraph 15.25 of Bursa Malaysia Listing Requirements.

Intended Outcome

Every company is headed by a board, which assumes responsibility for the company’s leadership and is collectively responsible for meeting the objectives and goals of the company.

Practice 1.1

The board should set the company’s strategic aims, ensure that the necessary resources are in place for the company to meet its objectives and review management performance. The board should set the company’s values and standards, and ensure that its obligations to its shareholders and other stakeholders are understood and met.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

Every company is headed by a board, which assumes responsibility for the company’s leadership and is collectively responsible for meeting the objectives and goals of the company.

Practice 1.2

A Chairman of the board who is responsible for instilling good corporate governance practices, leadership and effectiveness of the board is appointed.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

Every company is headed by a board, which assumes responsibility for the company’s leadership and is collectively responsible for meeting the objectives and goals of the company.

Practice 1.3

The positions of Chairman and CEO are held by different individuals.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

Every company is headed by a board, which assumes responsibility for the company’s leadership and is collectively responsible for meeting the objectives and goals of the company.

Practice 1.4

The board is supported by a suitably qualified and competent Company Secretary to provide sound governance advice, ensure adherence to rules and procedures, and advocate adoption of corporate governance best practices.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

Every company is headed by a board, which assumes responsibility for the company’s leadership and is collectively responsible for meeting the objectives and goals of the company.

Practice 1.5

Directors receive meeting materials, which are complete and accurate within a reasonable period prior to the meeting. Upon conclusion of the meeting, the minutes are circulated in a timely manner.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

There is demarcation of responsibilities between the board, board committees and management.

There is clarity in the authority of the board, its committees and individual directors.

Practice 2.1

The board has a board charter which is periodically reviewed and published on the company’s website. The board charter clearly identifies–

the respective roles and responsibilities of the board, board committees, individual directors and management; and

issues and decisions reserved for the board.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

The board is committed to promoting good business conduct and maintaining a healthy corporate culture that engenders integrity, transparency and fairness.

The board, management, employees and other stakeholders are clear on what is considered acceptable behaviour and practice in the company.

Practice 3.1

The board establishes a Code of Conduct and Ethics for the company, and together with management implements its policies and procedures, which include managing conflicts of interest, preventing the abuse of power, corruption, insider trading and money laundering.

The Code of Conduct and Ethics is published on the company’s website.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

The board is committed to promoting good business conduct and maintaining a healthy corporate culture that engenders integrity, transparency and fairness.

The board, management, employees and other stakeholders are clear on what is considered acceptable behaviour and practice in the company.

Practice 3.2

The board establishes, reviews and together with management implements policies and procedures on whistleblowing.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

Board decisions are made objectively in the best interests of the company taking into account diverse perspectives and insights.

Practice 4.1

At least half of the board comprises independent directors. For Large Companies, the board comprises a majority independent directors.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

Board decisions are made objectively in the best interests of the company taking into account diverse perspectives and insights.

Practice 4.2

The tenure of an independent director does not exceed a cumulative term limit of nine years. Upon completion of the nine years, an independent director may continue to serve on the board as a non-independent director.

If the board intends to retain an independent director beyond nine years, it should justify and seek annual shareholders’ approval. If the board continues to retain the independent director after the twelfth year, the board should seek annual shareholders’ approval through a two-tier voting process.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

Board decisions are made objectively in the best interests of the company taking into account diverse perspectives and insights.

Practice 4.3 - Step Up

The board has a policy which limits the tenure of its independent directors to nine years.

Application	:	Choose an item.
Explanation on adoption of the practice	:

Intended Outcome

Board decisions are made objectively in the best interests of the company taking into account diverse perspectives and insights.

Practice 4.4

Appointment of board and senior management are based on objective criteria, merit and with due regard for diversity in skills, experience, age, cultural background and gender.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

Board decisions are made objectively in the best interests of the company taking into account diverse perspectives and insights.

Practice 4.5

The board discloses in its annual report the company’s policies on gender diversity, its targets and measures to meet those targets. For Large Companies, the board must have at least 30% women directors.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

Board decisions are made objectively in the best interests of the company taking into account diverse perspectives and insights.

Practice 4.6

In identifying candidates for appointment of directors, the board does not solely rely on recommendations from existing board members, management or major shareholders. The board utilises independent sources to identify suitably qualified candidates.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

Board decisions are made objectively in the best interests of the company taking into account diverse perspectives and insights.

Practice 4.7

The Nominating Committee is chaired by an Independent Director or the Senior Independent Director.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

Stakeholders are able to form an opinion on the overall effectiveness of the board and individual directors.

Practice 5.1

The board should undertake a formal and objective annual evaluation to determine the effectiveness of the board, its committees and each individual director. The board should disclose how the assessment was carried out and its outcome.

For Large Companies, the board engages independent experts periodically to facilitate objective and candid board evaluations.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

The level and composition of remuneration of directors and senior management take into account the company’s desire to attract and retain the right talent in the board and senior management to drive the company’s long-term objectives.

Remuneration policies and decisions are made through a transparent and independent process.

Practice 6.1

The board has in place policies and procedures to determine the remuneration of directors and senior management, which takes into account the demands, complexities and performance of the company as well as skills and experience required. The policies and procedures are periodically reviewed and made available on the company’s website.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

The level and composition of remuneration of directors and senior management take into account the company’s desire to attract and retain the right talent in the board and senior management to drive the company’s long-term objectives.

Remuneration policies and decisions are made through a transparent and independent process.

Practice 6.2

The board has a Remuneration Committee to implement its policies and procedures on remuneration including reviewing and recommending matters relating to the remuneration of board and senior management.

The Committee has written Terms of Reference which deals with its authority and duties and these Terms are disclosed on the company’s website.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

Stakeholders are able to assess whether the remuneration of directors and senior management is commensurate with their individual performance, taking into consideration the company’s performance.

Practice 7.1

There is detailed disclosure on named basis for the remuneration of individual directors. The remuneration breakdown of individual directors includes fees, salary, bonus, benefits in-kind and other emoluments.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

Stakeholders are able to assess whether the remuneration of directors and senior management is commensurate with their individual performance, taking into consideration the company’s performance.

Practice 7.2

The board discloses on a named basis the top five senior management’s remuneration component including salary, bonus, benefits in-kind and other emoluments in bands of RM50,000.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

Stakeholders are able to assess whether the remuneration of directors and senior management is commensurate with their individual performance, taking into consideration the company’s performance.

Practice 7.3 - Step Up

Companies are encouraged to fully disclose the detailed remuneration of each member of senior management on a named basis.

Application	:	Choose an item.
Explanation on adoption of the practice	:

Intended Outcome

There is an effective and independent Audit Committee.

The board is able to objectively review the Audit Committee’s findings and recommendations. The company’s financial statement is a reliable source of information.

Practice 8.1

The Chairman of the Audit Committee is not the Chairman of the board.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

There is an effective and independent Audit Committee.

The board is able to objectively review the Audit Committee’s findings and recommendations. The company’s financial statement is a reliable source of information.

Practice 8.2

The Audit Committee has a policy that requires a former key audit partner to observe a cooling-off period of at least two years before being appointed as a member of the Audit Committee.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

There is an effective and independent Audit Committee.

The board is able to objectively review the Audit Committee’s findings and recommendations. The company’s financial statement is a reliable source of information.

Practice 8.3

The Audit Committee has policies and procedures to assess the suitability, objectivity and independence of the external auditor.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

There is an effective and independent Audit Committee.

The board is able to objectively review the Audit Committee’s findings and recommendations. The company’s financial statement is a reliable source of information.

Practice 8.4 - Step Up

The Audit Committee should comprise solely of Independent Directors.

Application	:	Choose an item.
Explanation on adoption of the practice	:

Intended Outcome

There is an effective and independent Audit Committee.

The board is able to objectively review the Audit Committee’s findings and recommendations. The company’s financial statement is a reliable source of information.

Practice 8.5

Collectively, the Audit Committee should possess a wide range of necessary skills to discharge its duties. All members should be financially literate and are able to understand matters under the purview of the Audit Committee including the financial reporting process.

All members of the Audit Committee should undertake continuous professional development to keep themselves abreast of relevant developments in accounting and auditing standards, practices and rules.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

Companies make informed decisions about the level of risk they want to take and implement necessary controls to pursue their objectives.

The board is provided with reasonable assurance that adverse impact arising from a foreseeable future event or situation on the company’s objectives is mitigated and managed.

Practice 9.1

The board should establish an effective risk management and internal control framework.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

Companies make informed decisions about the level of risk they want to take and implement necessary controls to pursue their objectives.

The board is provided with reasonable assurance that adverse impact arising from a foreseeable future event or situation on the company’s objectives is mitigated and managed.

Practice 9.2

The board should disclose the features of its risk management and internal control framework, and the adequacy and effectiveness of this framework.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

Companies make informed decisions about the level of risk they want to take and implement necessary controls to pursue their objectives.

The board is provided with reasonable assurance that adverse impact arising from a foreseeable future event or situation on the company’s objectives is mitigated and managed.

Practice 9.3 - Step Up

The board establishes a Risk Management Committee, which comprises a majority of independent directors, to oversee the company’s risk management framework and policies.

Application	:	Choose an item.
Explanation on adoption of the practice	:

Intended Outcome

Companies have an effective governance, risk management and internal control framework and stakeholders are able to assess the effectiveness of such a framework.

Practice 10.1

The Audit Committee should ensure that the internal audit function is effective and able to function independently.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

Companies have an effective governance, risk management and internal control framework and stakeholders are able to assess the effectiveness of such a framework.

Practice 10.2

The board should disclose–

whether internal audit personnel are free from any relationships or conflicts of interest, which could impair their objectivity and independence;

the number of resources in the internal audit department;

name and qualification of the person responsible for internal audit; and

whether the internal audit function is carried out in accordance with a recognised framework.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

There is continuous communication between the company and stakeholders to facilitate mutual understanding of each other’s objectives and expectations.

Stakeholders are able to make informed decisions with respect to the business of the company, its policies on governance, the environment and social responsibility.

Practice 11.1

The board ensures there is effective, transparent and regular communication with its stakeholders.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

There is continuous communication between the company and stakeholders to facilitate mutual understanding of each other’s objectives and expectations.

Stakeholders are able to make informed decisions with respect to the business of the company, its policies on governance, the environment and social responsibility.

Practice 11.2

Large companies are encouraged to adopt integrated reporting based on a globally recognised framework.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

Shareholders are able to participate, engage the board and senior management effectively and make informed voting decisions at General Meetings.

Practice 12.1

Notice for an Annual General Meeting should be given to the shareholders at least 28 days prior to the meeting.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

Shareholders are able to participate, engage the board and senior management effectively and make informed voting decisions at General Meetings.

Practice 12.2

All directors attend General Meetings. The Chair of the Audit, Nominating, Risk Management and other committees provide meaningful response to questions addressed to them.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

Intended Outcome

Shareholders are able to participate, engage the board and senior management effectively and make informed voting decisions at General Meetings.

Practice 12.3

Listed companies with a large number of shareholders or which have meetings in remote locations should leverage technology to facilitate–

including voting in absentia; and

remote shareholders’ participation at General Meetings.

Application	:	Choose an item.
Explanation on application of the practice	:
Explanation for departure	:
Large companies are required to complete the columns below. Non-large companies are encouraged to complete the columns below.
Measure	:
Timeframe	:

SECTION B – DISCLOSURES ON CORPORATE GOVERNANCE PRACTICES PERSUANT CORPORATE GOVERNANCE GUIDELINES ISSUED BY BANK NEGARA MALAYSIA

Disclosures in this section are pursuant to Appendix 4 (Corporate Governance Disclosures) of the Corporate Governance Guidelines issued by Bank Negara Malaysia. This section is only applicable for financial institutions or any other institutions that are listed on the Exchange that are required to comply with the above Guidelines.

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