CODE OF CORPORATE GOVERNANCE FOR PUBLICLY LISTED COMPANIE Flashcards
The company should be headed by a
competent, working board to foster the long-term
success of the corporation, and to sustain its
competitiveness and profitability in a manner
consistent with its corporate objectives and the
longterm best interests of its shareholders and other
stakeholders.
Principle 1
The fiduciary roles, responsibilities and
accountabilities of the Board as provided under the
law, the company’s articles and by-laws, and other
legal pronouncements and guidelines should be
clearly made known to all directors as well as to
stockholders and other stakeholders.
Principle 2:
Board committees should be set up to the
extent possible to support the effective performance
of the Board’s functions, particularly with respect to
audit, risk management, related party transactions,
and other key corporate governance concerns, such as
nomination and remuneration. The composition,
functions and responsibilities of all committees
established should be contained in a publicly available
Committee Charter.
Principle 3
To show full commitment to the company,
the directors should devote the time and attention
necessary to properly and effectively perform their
duties and responsibilities, including sufficient time to
be familiar with the corporation’s business.
Principle 4
The Board should endeavor to exercise
objective and independent judgment on all corporate
affairs.
Principle 5
The best measure of the Board’s
effectiveness is through an assessment process. The
Board should regularly carry out evaluations to
appraise its performance as a body, and assess
whether it possesses the right mix of backgrounds and
competencies.
Principle 6
Members of the Board are duty-bound to
apply high ethical standards, taking into account the
interests of all stakeholders.
Principle 7
The company should establish corporate
disclosure policies and procedures that are practical
and in accordance with best practices and regulatory
expectations.
Principle 8
The company should establish standards
for the appropriate selection of an external auditor,
and exercise effective oversight of the same to
strengthen the external auditor’s independence and
enhance audit quality.
Principle 9
The company should ensure that material
and reportable non-financial and sustainability issues
are disclosed.
Principle 10
The company should maintain a
comprehensive and cost-efficient communication
channel for disseminating relevant information. This
channel is crucial for informed decision-making by
investors, stakeholders and other interested users.
Principle 11
To ensure the integrity, transparency and
proper governance in the conduct of its affairs, the
company should have a strong and effective internal
control system and enterprise risk management
framework.
Principle 12
The company should treat all
shareholders fairly and equitably, and also recognize,
protect and facilitate the exercise of their rights.
Principle 13
: The rights of stakeholders established by
law, by contractual relations and through voluntary
commitments must be respected. Where
stakeholders’ rights and/or interests are at stake,
stakeholders should have the opportunity to obtain
prompt effective redress for the violation of their
rights.
Principle 14
A mechanism for employee participation
should be developed to create a symbiotic
environment, realize the company’s goals and
participate in its corporate governance processes
Principle 15
