Please enable JavaScript.
Coggle requires JavaScript to display documents.
Corporate governance in the Asia-Pacific (Malaysia) (Key characteristics…
Corporate governance in
the Asia-Pacific (Malaysia)
Key characteristics influencing Malaysian corporate governance
Legal system - Common law
Board structure - Unitary
Predominant ownership structure - Controlling shareholder (family, corporation, or trust nominee)
Important aspect - Influence of Bumiputera shareholders
Main business form - Public limited company
Directors
Responsibilities :
reviewing the overall effectiveness of the internal control systems of company
succession planning and training of directors
identifying risks and ensuring an appropriate risk management system
ensuring proper management of company
the investor relations programme
the strategic direction of company
Directors' remuneration
reflect levels of both corporate and individual performance
non executive directors - decided by the board as a whole & should reflect each non-executive's experience and responsibilities of the company
remuneration committee - to recommend remuneration levels for executive directors
Accountability and audit
Audit committee's role:
considering the appointment of external auditor, his/her fee, and the nature and scope of the audit
reviewing the scope, programme, & results of internal audit
reviewing the year-end & quarterly financial statements of the company
Shareholders
The Corporate
Governance Blueprint
Malaysia needs to embed corporate governance culture in listed companies
6 chapters :
Role of Institutional Investors exhorts institutional investors to take a leadership role on governance by exercising responsible ownership
Board's Role in Governance amplifies the role of boards as active & responsible fiduciaries
Shareholder Rights advocates the empowerment of shareholders through a fair, efficient & transparent voting process
Disclosure and Transparency emphasizes the enhancement of disclosure standards & practices to promote informed decision-making by shareholders
Role of Gatekeepers and Influences gives recognition to their critical role in fortifying self & market discipline
Public and Private Enforcement reinforces the critical & complementary roles of public & private enforcement in maintaining market confidence