PART A - RIGHTS OF THESHAREHOLDERS
Guiding ReferenceAssessment Guidance/Notes toAssessorsSource Document/ LocationofInformationPoints
A.1Basic Shareholder RightsYN
A.1.1Does the company pay (interim andfinal/annual) dividends in an equitable and timely manner; that is, all shareholders are treated equally and paid within 30 days after being (i) declared for interim dividends and (ii) approved by annual general meeting (AGM) for final dividends?OECD Principle II: The Rights of Shareholders andKey Ownership Functions (A) Basic shareholder rights should include the right to, amongst others: (6) share in the profits of the corporation.Not Applicable(N/A)=for those that don't pay dividend. To assign 'Y', both interim and final dividends have to be paid within 30 days after being declared or approved by shareholders respectively and all shareholders within the same class of share are treated equally. Shareholders within the same class of share are treated equally when they receive the same amount of dividend per share and the dividends are paid at the same time.Dividends announcement10
A.2 Right to participate in decisions concerning fundamental corporate changes.
Do shareholders have the right toparticipatein:
A.2.1Amendments to the company'sconstitution?OECD Principle II(B)Shareholders should have the right to participate in, and to be sufficiently informed on, decisions concerning fundamental corporate changes such as: (1)amendments to the statutes, or articles of incorporation or similar governing documents of the companyAs the owners of a company, shareholders have the right to be involved in decisions concerning fundamental corporate changes specified in point A.2.1-A.2.3 to provide a check and balance and to assure that these changes are not abused. These rights need to be publicly disclosed to shareholders. If not disclosed, assign 'N'. Example of A.2.3 is the sale of a business unit/a subsidiary that accounts for a majority portion of the company's assets.Annual Report/Company website/Articles of Association.10
A.2.2The authorization of additional shares?OECD Principle II (B):(2)the authorization of additional shares10
A.2.3The transfer of all or substantially allassets, which in effect results in the sale of the company?OECD Principle II.(B):(3)extraordinarytransactions, including thetransfer ofallorsubstantiallyallassets,thatineffectresult in thesaleofthecompany10
A.3 Right toparticipate effectivelyinandvoteingeneralshareholdermeetingsandshouldbeinformedofthe rules, includingvotingproceduresthatgoverngeneral shareholder meetings.
A.3.1Do shareholders have the opportunity,OECD Principle II(C):The definition of total remuneration refers toAnnouncementof10
Evidenced by an agenda item, to approve(3) Effective shareholder participationin keyall forms of remuneration, and not just fees. IfAGM/Articlesof
Remuneration (fees, allowances, benefit-in-corporate governance decisions, suchas thenot disclosed, assign 'N'. Where shareholdersAssociation/Annual
kind and other emoluments) or anyincreases in remuneration for the non- executive directors/commissioners?
nomination and election of board members, shouldbe facilitated. Shareholders should be able to make their views known on the remuneration policy for board members and key executives. The equity component of compensation schemes for board members and employees should be subject to shareholder approval.
give the authorization to the Board to set ordetermine total remuneration then it is also"N".
Report/Companywebsite.
A.3.2 Does the company provide non-controlling shareholders a right to nominate candidates for board of directors/commissioners?
In most jurisdictions, shareholders owning at least more than a certain threshold may nominate board members. If not disclosed, assign zero.
Annual Report/Company 1 0website/ of Association.
A.3.3 Does the company allow shareholders to elect directors/commissioners individually?
A.3.4 Doesthecompanydisclosethevotingand votetabulationprocedures used, declaring bothbefore themeeting proceeds?
OECD Principle II (C): Shareholdersshouldhavethe opportunityto participateeffectively and voteingeneral shareholder meetingsand shouldbeinformed ofthe rules,includingvoting procedures,thatgovern general shareholdermeetings.
If not disclosed,assign 'N'. Minutes of AGM/ Result of 1 0AGM/ of Association/Annual Report/ website.
If not disclosed,assign 'N'. AGM Minutes/Articles of 1 0Association/Company website.
A.3.5 Do theminutes of the most recent AGM recordthattherewas anopportunity allowingforshareholderstoaskquestions or raiseissues?
OECD Principle II (C): (2)Shareholders shouldhavethe opportunitytoask questionstotheboard,includingquestionsrelating totheannualexternalaudit,toplaceitemsonthe
AGM provides the avenue for shareholders (andespeciallyfor non-controlling shareholders) to exercise their rights, includingraisingquestions/issuestomembers
AGMMinutes/Summaryof 1 0Minutes
A.3.6Do the minutes of the most recent AGMrecordquestionsand answers?agenda of general meetings, and to proposeresolutions,subjecttoreasonablelimitations.ofthe board and the executive team.Therefore,board members'attendanceatthe AGMisnecessary to facilitatethis.Sincesome shareholders maynotbe abletoattendthe AGM,itisimportantthat companiespublicly discloseboard attendanceattheAGMso shareholders willbeabletoidentifyboard members whodonotattendthemeetingand to assessboard members' commitment to theirduties. If notdisclosed,assign 'N'.Only information inEnglish canbeassessed.10
A.3.7DoesthedisclosureoftheoutcomeofthemostrecentAGMinclude resolution(s)?10
A.3.8Does the company disclose the votingresultsincluding approving,dissenting, and abstainingvotesfor each agendaitemfor the mostrecent AGM?10
A.3.9Doesthecompanydisclosethelistofboardmembers who attended the most recentAGM?OECD Principle II (C); and
ICGN 2.4.2: Alldirectorsneed tobeabletoallocatesufficient timetotheboard toperformtheirresponsibilities effectively,includingallowingsome leewayfor occasionswhen greaterthanusual time demands aremade.10
A.3.10Did the chairman of the board ofdirectors/commissioners attendthe most recentAGM?10
A.3.11Did the CEO/Managing Director/President attendthe mostrecentAGM?10
A.3.12DidthechairmanoftheAuditCommitteeattendthe mostrecentAGM?10
A.3.13Didthe company organise theirmostrecentAGMin aneasy toreach location?OECDPrincipleII (C)'Easy to reach location' means that the meeting location is where the majority ofshareholdersresideorthemeetinglocationis easilyaccessible.Notice of AGM/Company website.10
A.3.14Does the company allow for voting inOECD Principle II (C):Ifnotdisclosed,assign'N'.AGM Announcement/AGM10
absentia?(4)ShareholdersshouldbeabletovoteinpersonorMinutes/Articles of
in absentia, and equal effect should be given tovoteswhether castin person orin absentia.
For purposes of this document voting inabsentia means theopportunityto vote withoutphysicallyparticipating ata general meeting,andincludes appointinganyperson physicallypresentatthe generalmeetingto voteontheshareholder'sbehalf (e.g.voting via proxy, email,electronic,and/orpost).
Association
A.3.15 Did the companyvotebypoll(asopposed tobyshow of hands)for allresolutions at the mostrecent AGM?
OECDPrincipleII (C) If not disclosed,assign 'N'. AGM Minutes. 1 0
A.3.16 Doesthecompanydisclosethatit has appointedanindependent party (scrutineers/inspectors)tocount and/or validate the votesatthe AGM?
If not disclosed,assign 'N'. AGMMinutes.10
A.3.17DoesthecompanymakepubliclyavailableOECD Principle II (C):Self-explanatory.Company10
bythenextworkingdaytheresultofthe(1)Shareholdersshouldbefurnishedwithsufficientannouncement/Company
votes taken during themost recent AGMand timelyinformation concerning thedate,locationwebsite.
forall resolutions?andagendaofgeneralmeetings,aswellasfulland
timelyinformation regarding the issues to bedecided atthemeeting.
A.3.18 Do companiesprovide at least 21 daysnoticeforallresolutions?
Self-explanatory.Company 10announcements/Articles ofAssociation/AnnualReport/Companywebsite.
A.3.19Does the company provide the rationaleandexplanation for each agenda item whichrequireshareholdersapproval in the notice of AGM/circularsand/orthe accompanyingstatement?Self-explanatory.Companyannouncements/Articles ofAssociation/ Annual Report/ Companywebsite.10
A.4 Markets for corporate controlshouldbeallowedtofunctionin anefficientandtransparentmanner.
A.4.1In cases of mergers, acquisitions and/ortakeovers, doestheboardof directors/commissioners ofthe offeree company appointanindependent party to evaluatethefairnessof thetransaction price?OECD Principle II (E):Marketsforcorporatecontrolshould beallowed to function inan efficient and transparent manner.
(1)Therulesand proceduresgoverning the acquisition ofcorporate controlinthecapital markets,and extraordinarytransactionssuch as mergers,and sales of substantialportionsof corporateassets, should beclearlyarticulated and disclosed sothatinvestorsunderstand theirrights and recourse. Transactionsshould occurat transparentprices and under fair conditions that protecttherights ofallshareholdersaccording to their class.Mergerannouncement/CompanyReportonthemerger.10
A.5 The exerciseofownership rightsbyallshareholders,includinginstitutionalinvestors,shouldbe facilitated.
A.5.1Doesthecompanypubliclydisclosepoliciestoencourage shareholders including institutionalshareholders toattendthe AGM?OECD Principle II (F):Theexerciseof ownership rightsbyallshareholders, including institutional investors, should be facilitated.An institutional investor is an entity whichpoollarge sums of moneyandinvestthemin securities,realpropertyand otherinvestment assets. Types ofinstitutionalinvestorstypically includebanks,insurance companies, mutual funds,pension funds,hedgefunds,investment advisors.
An example ofthepolicyishavingcontinuous dialogue withinstitutional investors. ThereAnnual Report/Companywebsite.10
shouldbeanexplicitstatementofpolicy to score a "Y"
Emphasishereis onthecompany'sactiveand positive stance towards encouraging participation ofshareholders,including institutional investorsatAGMs.
A.5.2 Isthe shareownership byinstitutional investors, otherthancontrolling shareholders,greater than5%?
If thecontrolling shareholder isan institutional investor,then onlyownershipshareofother institutionalinvestors arecountedin determiningiftheirownershipisgreaterthan5%.
For the purposes of this document a controlling shareholder means any person whois oragroupofpersonswhotogetherare entitledtoexerciseorcontroltheexerciseof atleast 33%of thevotingsharesinacompany (or such other percentage as may be prescribed in therespectivehomecountry's CodeOnTake-Overs and Mergers as beingthe levelfortriggeringa mandatorygeneral offer) orwhois orarein aposition tocontrolthe composition ofa majorityof theboard of directors ofsuch companyorhas/have dominationor controlof thecompany.
Annual Report/Company 10website.
PART B - EQUITABLE TREATMENT OF SHAREHOLDERS
GuidingReferenceAssessment Guidance/Notes toAssessorsSource Document/LocationofInformationPoints
B.1Shares andvotingrightsYN
B.1.1Do the company's ordinary or commonshareshaveone vote for one share?OECD Principle III(A)Allshareholders of thesameseries of a class should be treated equally. (1)Withinanyseries of aclass,allshares should carrythesamerights. All investors should beable to obtain information about therightsattached toallseriesand classesof sharesbeforetheypurchase.Anychanges in voting rightsshould besubjecttoapprovalby thoseclassesof shareswhicharenegatively affected.
ICGN 8.3.1 Unequal voting rights Companiesordinary orcommonsharesshould feature one vote for one share.Divergence froma'one-share, one-vote'standard which givescertain shareholderspowerwhich is disproportionatetotheir equityownership should beboth disclosed and justified.Self-explanatoryAnnual ReportCompanywebsite/announcement10
B.1.2Where the company has more than oneclassof shares, does the companypublicise the votingrights attached toeachclass of shares(e.g.throughthecompanywebsite/ reports/ the stock exchange/ theregulator'swebsite)?The voting rights attached to a class ofshares(e.g. onevoteper ordinaryshare)is deemedtohavebeenpublicisedwhen such informationis explicitlydisclosedin any mediumofcommunication - including, corporateannual report, corporatewebsite, andwebsites oftheexchangesand/or regulators.
N/Awhencompanyhas onlyonce class of shares.Annual Report/Companywebsiteannouncement10
B.2Noticeof AGM
B.2.1Does each resolution in the most recentAGM dealwithonlyone item,i.e.,there is nobundling ofseveral itemsintothesame resolution?OECD Principle III(C)Shareholdersshould havethe opportunity toparticipateeffectivelyand votein general shareholder meetingsandshouldbeinformed oftherules,includingvotingprocedures,thatSelf-explanatoryNoticeofAGM10
B.2.2Are the company's notice of the mostrecent AGM/circulars fully translated into Englishandpublishedonthesame dateas thelocal-language version?govern shareholder meetings:(1)Shareholdersshould befurnishedwith sufficientandtimely informationconcerning thedate, location and agenda of general meetings, aswell as full and timely information regarding theissuestobedecided at the meeting. (3)Effectiveshareholder participationinkey corporategovernancedecisions,suchas the nomination and election ofboard members, should be facilitated.
OECD Principle III (A)Allshareholders of thesameseries of a class should be treat equally. (4)Impediments tocross border voting should be eliminated.
ICGN8.3.2Shareholder participationin governanceShareholders shouldhavetherightto participatein keycorporategovernance decisions, suchas therighttonominate, appointand removedirectors in an individual basis andalso the right to appointexternal auditor.
ICGN 8.4.1 Shareholder ownership rightsThe exercise of ownership rights by allThe English-language version of thesedocuments MUSTbeavailableon thesame daywhen thecompanypublished or made publiclyavailable thelocal-languageversion of such documentsNoticeofAGM10
DoesthenoticeofAGM/circularshavethefollowingdetails:
B.2.3Are the profiles of directors/commissioners ( at least age,qualification,date offirstappointment, experience, and directorships in other listedcompanies) inseekingelection/re- electionincluded?Profile refers to age, qualifications, experiences,andpositionsordirectorshipsin otherlistedcompaniesNoticeofAGM/Annual Report10
B.2.4Aretheauditorsseekingappointment/re-appointmentclearly identified?Thenameof theauditfirmmustbe explicitlystatedeither in the resolution or explanatorynotes.NoticeofAGM/Annual Report10
B.2.5Hasanexplanationofthedividendpolicybeenprovided?Merely disclosing the dividend rate oramountisnotsufficient.NoticeofAGM10
B.2.6Istheamountpayableforfinaldividendsdisclosed?NotApplicable(N/A)=ifnofinaldividendsarepaid outNoticeofAGM10
B.2.7Documents requiredtobeproxy/Were theproxydocumentsmade easilyavailable?shareholders should be facilitated, includinggiving shareholders timely and adequate notice of allmattersproposedfor shareholder vote.Companiesmustclearlyspecifythenatureortypeofdocumentsrequiredtobeproxy, if relevant.NoticeofAGM10
B.3 Insider trading andabusive self-dealingshould be prohibited.
B.3.1Does the company have policies and/orrules prohibiting directors/commissioners andemployeesto benefit fromknowledge whichis not generally availabletothe market?OECD Principle III(B)Insider trading and abusivedealing should be prohibited
ICGN 3.5 Employee share dealing Companiesshouldhaveclearrules regarding anytradingbydirectors andemployees inthe company's own securities. Among other issues,thesemustseektoensureindividuals donotbenefitfromknowledgewhich isnot generally available to the market.
ICGN 8.5 Shareholder rights of action... Minorityshareholdersshould beafforded protectionandremedies againstabusiveor oppressiveconduct.This policy/rule must be explicitly stated.Otherwise,'N'.Annual Report/Companywebsite/announcement10
B.3.2Are the directors and commissionersrequiredto report their dealings in company shareswithin3 business days?Y'onlyifitisexplicitlystatedthatdirectorsarerequiredtoinform orreporttothe company whentransactingincompany shares regardless whether dealings are withinor outsideblackout/closedperiods. Otherwise,'N'.Annual Report/Companywebsite/announcement10
B.4 Relatedparty transactionsbydirectors andkeyexecutives.
B.4.1Aredirectorsandcommissionersrequiredto disclosetheir interest in transactions andanyother conflictsofinterest?OECD Principle III(C)Members oftheboard andkeyexecutives shouldberequiredtodisclose totheboard whetherthey,directly,indirectly oronbehalf ofthird parties,havea materialinterestin any transaction or matterdirectlyaffectingthe corporation.
ICGN2.11.1Related partytransactions Companies shouldhave a process for reviewing and monitoring anyrelated party transaction.Acommitteeof independent directors should review significant related partytransactions todeterminewhether they areinthebestinterests of thecompanyandif so to determine what terms are fair.
ICGN2.11.2Directorconflictsof interest Companies should havea process for identifyingand managing conflicts of interest directors mayhave. If a director has an interest in a matter under consideration by the board, then the director should notThepresenceofthispolicymustbeevident.Annual Report/Companywebsite/announcement10
B.4.2Doesthecompanyhaveapolicyrequiringacommittee of independent directors/commissioners toreview material/significant RPTsto determine whethertheyareinthebestinterestsof the company?Thetasktoreviewmaterial/significantRPT(i.e.,RPTs thatmeetthethresholdlevel stipulated bytherespectivejurisdictions' rules/regulations/requirements onRPT) normallyvests withthe AuditCommittee (AC).Hence,tocheck theAC'stermsof reference.Note:Anycases of non- compliancewith prevailing rules/regulations/requirements pertaining tomaterial/significantRPTistobehandled asa penaltyasper itemB.2.1(P).Annual Report/Companywebsite/announcement10
B.4.3Doesthecompanyhaveapolicyrequiringboardmembers (directors/commissioners) toabstainfrom participatingintheboard discussion onaparticular agendawhen theyare conflicted?participateinthosediscussionsandtheboardshould followanyfurther appropriate processes. Individual directors should be conscious ofshareholderandpublic perceptions and seek to avoid situations where there mightbe anappearance ofa conflictof interest.Thispolicymustbeclearlystated.Annual Report/Companywebsite/announcement10
B.4.4Doesthecompanyhavepoliciesonloanstodirectors andcommissioners either forbidding this practiceorensuringthat theyare beingconductedatarm'slength basis andatmarketrates.Thispolicymustbeclearlystated.Annual Report/Companywebsite/announcement10
B.5 Protectingminority shareholders fromabusiveactions
B.5.1WerethereanyRPTsthatcanbeclassifiedas financialassistance to entities other than wholly-ownedsubsidiary companies?OECD Principle III(A)Allshareholders of thesameseries of a class should be treated equally. (2) Minorityshareholdersshould beprotected fromabusiveactionsby, orintheinterest of, controlling shareholders acting either directly orindirectly,andshouldhave effective means of redress.
ICGN2.11.1Related partytransactions Companies shouldhave a process for reviewing and monitoring anyrelated party transaction.Acommitteeof independent directors should review significant related partytransactions todeterminewhether they areinthebestinterests of thecompanyandif so to determine what terms are fair.
ICGN 2.11.2 Director conflicts of interestThe detailsof RPT need to be examined.Particularfocuspertains totransactions betweenthePLCand otherthanwholly owned subsidiary.Financialassistanceneed not bein cash form only. An exampleof non-cash form offinancial assistanceis forgiving a debt.
A companycan beconsidered asgiving financialassistanceif thetermsand conditions arenot innormalcommercial terms.
Wherethereareloanstorelated parties, thereshould bean explicitstatementthat those loans are provided at prevailing marketinterestrate.Intheabsenceofsuch astatement, financialassistance wouldbe presumed.Annual Report/Companywebsite/announcement/Media10
B.5.2DoesthecompanydisclosethatRPTsareconducted insuch a wayto ensure that theyare fair andatarms' length?Companies should have a process foridentifyingand managing conflicts of interest directors may have. If a director has an interest in a matter under consideration by theboard,then thedirector should not participatein thosediscussionsand theboard should followanyfurther appropriate processes. Individual directors should be conscious ofshareholderandpublic perceptions and seek to avoid situations where there mightbe anappearance ofa conflict of interest.
ICGN 8.5Shareholder rights ofaction Shareholdersshouldbeaffordedrights of actionandremedies whicharereadily accessiblein ordertoredressconduct of companywhichtreats theminequitably. Minorityshareholdersshould beafforded protectionandremedies againstabusiveor oppressiveconduct.ItmustbeclearlystatedanyRPTconductedisfairand atarms' length transactions,or "fair or normal commercial terms. Otherwise, 'N'.
The termfair and at arms'lengthfor the purposes ofthisdocumentrefers to transactions in an openand unrestricted marketand between awilling buyerand a willingseller whoareknowledgeable, informed,and acting independentlyof each other. Normal commercial terms are stronger than normal business terms.Annual Report/Companywebsite/announcement10
PART C - ROLE OF STAKEHOLDERS
GuidingReferenceAssessment Guidance/Notes toAssessorsSource Document/ Location ofInformationPoints
C.1 The rights ofstakeholders thatare established by lawor throughmutual agreementsare tobe respected.YN
Does the companydiscloseapolicy that:
C.1.1Stipulatestheexistenceandscopeofthecompany'seffortstoaddresscustomers' healthandsafety?OECD Principle IV (A):The rightsof stakeholders that are establishedbylawor throughmutual agreements aretoberespected. In all OECD countries,therights of stakeholdersare establishedbylaw(e.g. labour,business, commercialandinsolvencylaws) orby contractualrelations. Eveninareas where stakeholderinterestsare notlegislated, many firms makeadditionalcommitments to stakeholders,and concernovercorporate reputationandcorporate performance often requirestherecognitionofbroaderinterests.
GlobalReporting Initiative: Sustainability Report (C1.1 - C.15) InternationalAccounting Standards 1: Presentation of Financial StatementsCustomers expect products and services toperform their intended functions satisfactorily,andnotposearisktohealth and safety. Theterm'health and safety (including security)' includes both physical as wellasnon-physicalaspects. Examples of suchpolicies:apolicy on productrecall,a policy on customer refund for failure to deliver service as promised, a policy on healthandsafetyinthe premisesofthe company,apolicy onanti-harassmentto stakeholders.Toassign'Y', thereshouldbeat leastoneparagraph explaining thepolicy relatedtothisissue.Annual Report/Companywebsite/Sustainability or CorporateResponsibility Report (CSR)10
C.1.2Explains supplier/contractor selectionpractice?Disclosure of supplier/contractor selectionpractices mayreveal ifacompany's considerationsincludeboth economicand non-economicfactors,such as environment, social,orhuman rights. Toassign 'Y',there shouldbeatleastoneparagraph explaining thepolicyrelatedtothisissue.10
C.1.3Describesthecompany'seffortstoensurethatitsvaluechain isenvironmentally friendly or isconsistent withpromoting sustainabledevelopment?Value chain consists of inputs to theproductionprocess, the productionprocess itselfand theresulting output. Environmentally friendly/sustainable developmentmeansthat thecompanynot onlycomplies withexistingenvironmental regulationbut also voluntarilyemploys value chainprocesses thatreduce waste/pollution/damage tothe environment. Toassign'Y',thereshould beatleastone paragraph explainingthe policy related to thisissue.10
C.1.4Elaborates the company's efforts tointeract withthe communities in which theyoperate?To assign 'Y', there should be at least oneparagraph explaining the company's efforts tointeractwith therelevantcommunities. There mustbeclear andstatedgoal(s) of the company'scommunityprogrammesand thus, itsinteractionisnotadhoc orarbitrary.An exampleis acompany's programmethat focuses onthreepillars:buildinghuman capital communityoutreach and strengthening economicvalue.10
C.1.5Directs the company's anti-corruptionprogrammesandprocedures?Corrupt practices include bribery, fraud,extortion, collusion, conflict of interest, and moneylaundering.Inthiscontext, these includeanoffer orreceiptofanygift,loan, fee,reward,orotheradvantagetoorfrom any person as an inducement to do somethingthatisdishonest,illegal, ora breachof trustintheconduct of the enterprisesbusiness (Transparency Internationalin GRI).Thus,an anti-corruption policy should address programmesto10
mitigatecorruptpractices.Examplesofanti-corruptionprogrammesareconductingrisk analysis on business unittoassess the potential for incidents of corruption within theunit,conducting trainingtoemployees on thecompany'spolicyand procedures on anti- corruption.Toassign 'Y',thereshould beat leastoneparagraphexplaining thepolicy relatedtothisissue.
C.1.6Describes how creditors' rights aresafeguarded?To assign 'Y', there should be at least oneparagraph explainingthe company's policy forsafeguardingcreditorsrights.Policies on safeguardingcreditors'rightsamong others includea)policy oncollaterals ofthe company'sassets,guarantees,and sub- ordinateddebt,b)policyondebtcovenants, c)protection inthecaseofdefault/distress, and d) disclosing information that enables external parties toevaluatethe entity's objectives,policies,and processesfor managingcapital,suchaselaboratedinIAS1:134-136.Annual Report/Companywebsite/financial statements10
Doesthecompanydisclosetheactivitiesthatithasundertakentoimplementthe above mentionedpolicies?
C.1.7CustomerhealthandsafetyOECD Principle IV (A) &Global ReportingInitiativeIntheAnnualReport/Companywebsiteandfor each stakeholder,to assign 'Y',there shouldbeatleastoneparagraph explaining activitiesthatthecompanyhasundertaken toimplementthepolicies.Annual Report/companywebsite/Sustainability or CR Report10
C.1.8Supplier/Contractor selection andcriteria10
C.1.9Environmentally-friendly value chain10
C.1.10Interactionwiththe communities11
C.1.11Anti-corruption programmes andProcedures10
C.1.12Creditors' rightsIn the Annual Report/Companywebsite/financialstatements, toassign 'Y', thereshould beatleast oneparagraph explaining activitiesthatthe companyhas undertaken toimplementsuch policies.Annual Report/Companywebsite/financial statements10
C.1.13Does the company have a separatecorporateresponsibility(CR) report/sectionor sustainability report/section?OECD Principle V (A):Disclosureshouldinclude, butnotbelimited to, material information on: (7)Issuesregarding employeesand other stakeholders.
Companiesare encouraged toprovide information on keyissuesrelevantto employeesand otherstakeholdersthat may materiallyaffectthelongtermsustainability of thecompany.CRReport/SustainabilityReportisaseparatereportfromtheAnnual Report. CR Section/Sustainability Sectionisasection withintheAnnualReport thatintegratesall stakeholdersissues in one section.
Corporateresponsibilityincludes social and environmental issues. If acompanypractices integratedreporting,this wouldsatisfythe requirementfor a"Y".Annual Report/Companywebsite/Sustainabilityor CR Report.10
C.2 Where stakeholder interests are protectedby law,stakeholders should have theopportunity toobtaineffectiveredress for violationof their rights.
C.2.1Does the company providecontactdetailsviathe company'swebsite orAnnual Report which stakeholders (e.g. customers,suppliers, general public etc.) canuse tovoice their concerns and/or complaintsforpossible violationoftheir rights?OECD Principle IV (B):Wherestakeholderinterestsareprotected by law, stakeholders should have the opportunitytoobtain effectiveredress for violation of their rights.
Thegovernanceframeworkand processes shouldbe transparent andnot impede the abilityofstakeholderstocommunicateand to obtain redress for the violation of rights.To receive a score of one, contact detailsmustincludeadedicated phonenumberor e-mail address.Companywebsite/AnnualReport.10
C.3 Performance-enhancingmechanisms for employee participationshouldbepermittedtodevelop.
C.3.1Doesthecompanyexplicitlydisclosethehealth,safety,andwelfarepolicyforits employees?OECD Principle IV (C):Performance-enhancing mechanismsfor employeeparticipationshouldbepermitted todevelop.In thecontext of corporate governance, performance enhancing mechanisms for participation maybenefit companiesdirectlyas wellasindirectly through thereadinessbyemployeestoinvest in firm specific skills.
Firmspecificskills arethose skills/competenciesthat arerelatedto production technologyand/or organizational aspects that are unique to a firm.
Examplesof mechanismsforemployee participation include: employeeToassign'Y',thereshouldbeatleastoneortwoparagraphsdescribing thecompany's policyregardingthehealth,safety, and welfare policyof its employees.AnnualReport/Companywebsite/separateCRorESGreportasthe casemay be10
C.3.2Doesthecompanypublishdatarelatingtohealth, safety and welfare of its employees?To assign 'Y', the company should publishratesof injury/occupational diseases, lost days/absenteeism,andbenefitsprovided to full-timeemployees.AnnualReport/Companywebsite/separateCRorESGreportasthe casemay be10
C.3.3Does the company have training anddevelopmentprogrammesfor its employees?To assign 'Y', there should be at least oneparagraphdescribingthe company'straining and developmentprogrammesfor its employees.AnnualReport/Companywebsite/separateCRorESGreportasthe casemay be10
C.3.4Does the company publish data ontraining anddevelopment programmes for itsemployees?representation on boards; and governanceprocessessuch as workscouncilsthat consider employeeviewpointsincertain key decisions. Withrespect toperformance enhancingmechanisms, employeestock ownershipplansor otherprofit sharing mechanismsaretobe foundin many countries.To assign 'Y', the company should publishaveragehours of training per year per employeebyemployeecategory.AnnualReport/Companywebsite/separateCRorESGreportasthe casemay be10
C.3.5Does the company have areward/compensation policy that accountsfortheperformance ofthe company beyondshort-termfinancial measures?ThisreferstoemployeesotherthandirectorsandCEO. Anexample ofshort-termfinancial measureislast yearprofit/EPS/Return on Investment.Examplesof measuresbeyond short-termfinancial measuresare:Balanced Scorecard,Employee StockOwnership Plan with exercisepricesignificantlyhigher than thecurrentstock price.AnnualReport/Companywebsite/separateCRorESGreportasthe casemay be10
C.4 Stakeholdersincludingindividualemployeeandtheirrepresentativebodies,shouldbeabletofreelycommunicatetheirconcernsaboutillegalorunethicalpracticestotheboardandtheir rights shouldnot be compromisedfor doingthis.
C.4.1Does the company have procedures forcomplaintsbyemployeesconcerning illegal (including corruption) and unethicalbehaviour?OECD Principle IV (E):Stakeholders,including individual employees andtheirrepresentative bodies, shouldbe abletofreelycommunicatetheir concerns aboutillegal or unethical practicestothe boardandtheir rights shouldnotbe compromisedfordoing this.Toassign'Y',thecompanyshouldexplicitlydisclosetheprocedures.Annual Report/Companywebsite10
C.4.2Does the company have a policy orprocedures toprotect an employee/person who reveals illegal/unethical behaviorfrom retaliation?Toassign'Y',thecompanyshouldexplicitlydisclosetheprocedures.Annual Report/Companywebsite10
PART D - DISCLOSURE AND TRANSPARENCY
GuidingReferenceAssessment Guidance/Notes toAssessorsSource Document/ Location ofInformationPoints
D.1 TransparentownershipstructureYN
D.1.1Doestheinformationonshareholdingsreveal theidentityofbeneficialowners,holding5%shareholdingor more?OECD Principle V: Disclosure andTransparency(A) Disclosure should include, but not limited to, material information on: (3) Major share ownership and voting rights,including group structures,intra- grouprelations, ownershipdata,and beneficial ownership.
ICGN 7.6 Disclosure of ownership... the disclosure should include adescriptionoftherelationshipofthe companyto othercompaniesin the corporategroup,dataon major shareholdersand anyother information necessary for a proper understanding of thecompany'srelationship with itspublic shareholders.Assign'Y'onlyif theidentity ofall beneficial owners holding more than 5% of issuedsharesisrevealed. If theshareholderis deemed tobean institutional investor,the end beneficialownersneed notbe disclosed.Annual Report(1)
D.1.2Does the company disclose the direct andindirect(deemed) shareholdings of major and/or substantialshareholders?Assign "Y" only if the company explicitlydisclosesbothdirect andindirect shareholdings.Ifthesubstantialshareholder isacompany,theultimate owner of the companymust bedisclosed.Annual Report1
D.1.3Does the company disclose the direct andindirect (deemed) shareholdings of directors(commissioners)?Assign "Y" only if the company explicitlydisclosedboth direct and indirect shareholdings.Annual Report1
D.1.4Does the company disclose the direct andindirect(deemed) shareholdings of senior management?Seniormanagementreferstothelevelbelowtheboard ofdirectors,which typicallyrefers totheC-level officers. Assign "Y" onlyif the companyexplicitlydisclosesboth directand indirectshareholdings.Annual Report1
D.1.5Does the company disclose details of thesubsidiaries,associates, jointventures and specialpurposeenterprises/vehicles (SPEs)/ (SPVs)?Apart from identifying the subsidiary,associates,JV/SPE,theshareholding interest (%) mustalsobedisclosed.Ifthecompany does nothave any of these, then assign "N/A".Annual Report1
D.2 QualityofAnnualReport
Does the company's annual report disclosethe followingitems:"OECD Principle V (A):(1) The financial and operating results of the company; (2)Companyobjectives, includingethics, environment,and other publicpolicy commitments;(3) Major share ownership and voting rights,including group structures,intra- grouprelations, ownership data,beneficial ownership;(4) Remuneration policy for members of the board and key executives, including their qualifications, the selectionprocess, other companydirectorshipsandwhether theyareregardedas independentbythe board;(6)Foreseeableriskfactors,including risk management system; (7)Issuesregarding employeesand other stakeholders;(8) Governance structure and policies, in
D.2.1Key risksTherisksmustbethosebeyondthefinancialrisk.Forexample,productrisk,countryrisk etc.Annual Report1
D.2.2CorporateobjectivesSome explanation/details of the corporateobjectiveisexpected. Performancetarget or long-termgoals aretobecountedas objectives.Annual Report1
D.2.3FinancialperformanceindicatorsAtleastonefinancialperformanceindicatoris expected. Examples include, ROI, ROE, ROS,and EPS.Annual Report1
D.2.4Non-financialperformanceindicatorsAt least one quantifiable non- financialperformanceindicatoris expected. Examples include,customersatisfaction index,and marketshare.Annual Report1
D.2.5Dividend policyparticular, the content of any corporategovernancecodeorpolicy andtheprocess by which it is implemented.
OECD Principle V (E): Channels for disseminating information shouldprovidefor equal, timelyand cost- efficientaccess torelevantinformationby users.
ICGN2.4Compositionandstructureof the boardICGN 2.4.1 Skills and experienceICGN 2.4.3 Independence
ICGN 5.0 RemunerationICGN 5.4 Transparency
UK Corporate Governance Code (2010) A.1.2 -the number of meetings of the boardandthose committeesandindividual attendance by directors.
CLSA-ACGA (2010)CG Watch 2010- Appendix 2 (I) CG rules and practices (19) Disclosetheexactremuneration of individual directors. "To assign'Y',the companymustdiscloseaquantifiabledividend policy,forexamplea targetdividend payoutratio/dividend per share.Annual Report1
D.2.6Detailsofwhistle-blowingpolicyDetails on how the policy is implementedand/ormonitoring processis expected.Annual Report0
D.2.7Biographical details (at least age,qualifications, dateof firstappointment, relevantexperience, andany other directorships oflisted companies) of directors/commissionersTo assign "Y" only if all the specifiedbiographicaldetailsaredisclosed.Annual Report1
D.2.8Training and/or continuing educationprogrammeattended by each director/commissionerThe training and/or continuing educationmustbefor eachdirectorforthemostrecent financial year.Annual Report1
D.2.9Numberofboardofdirectors/commissionersmeetingsheld duringtheyearSelf-explanatoryAnnual Report1
D.2.10Attendance details of eachdirector/commissionerinrespectofmeetings heldSelf-explanatoryAnnual Report1
D.2.11DetailsofremunerationoftheCEOandeachmember of the board of directors/commissionersThetotal remunerationpaid/payabletoEACHdirector/commissionermustberevealed.Annual Report1
CorporateGovernance ConfirmationStatement
D.2.12DoestheAnnualReportcontainastatementconfirmingthe company's full compliance with thecodeof corporate governanceand wherethereisnon-compliance,identify and explainreasonsfor eachsuchissue?OECD PRINCIPLE V (A) (8)
UK CODE (JUNE 2010): Listing Rules9.8.6 R (for UK incorporated companies) and9.8.7R (for overseasincorporated companies)statethatinthecase ofa companythathasa Premiumlisting of equityshares,thefollowingitems mustbe includedinitsAnnualReportandaccounts: astatement ofhowthelisted companyhas appliedtheMainPrinciplessetoutinthe UKCG Code,ina manner thatwould enable shareholderstoevaluatehowtheprinciples havebeen applied;astatementasto whether thelisted companyhascomplied throughouttheaccounting period with all relevantprovisionsset outintheUK CG Code;ornotcomplied throughoutthe accountingperiod withallrelevant provisionsset outinthe UKCGCode,andif so, setting out: (i)thoseprovisions,if any,ithasnot complied with; (ii)in thecaseofprovisionswhose requirements are of a continuing nature, theperiodwithin which,ifany,itdidnot comply with some or all of those provisions; and (iii) the companys reasons for non- compliance.
ASX CODE: UnderASXListingRule4.10.3,companiesThe company has to specifically state thattheyhavecomplied withalltheguidelinesin thecodeand identifyspecificdeviations. Using termssuch as"generallycomplied", "complied whereapplicable" or"complied withbestpractices"shouldnotbetakenas fullcompliance. Thecompany mayhave one statementinthe AnnualReportconfirming complianceoritmayhavetheinformationin atabularformindicating eachprincipleand guidelineand commenting on if theyhave complied or not. For thosenot complied with,an explanation should begiven. Either methodof disclosurecan assign a 'Y'.Annual Report1
arerequiredtoprovideastatementintheirAnnual Report disclosing the extentto whichtheyhave followedthe Recommendationsin thereportingperiod. Wherecompanies havenotfollowedallthe Recommendations, they mustidentifythe Recommendationsthat havenotbeen followedandgive reasons fornotfollowing them. AnnualReportingdoes notdiminish thecompanys obligation toprovide disclosureunderASXListing Rule 3.1.
D.3. Disclosureof relatedpartytransactions(RPT)
D.3.1Doesthecompanydiscloseitspolicycoveringthereview and approval of material/significantRPTs?OECD Principle V: Disclosure andTransparency(A) Disclosure should include, but not limited to, material information on: (5) Related party transactions
ICGN 2.11.1 Related party transactions Thecompanyshoulddisclose details of all materialrelated partytransactionsin its Annual Report.RPTsdisclosedinAnnualReportaredeemedtobe material/significantRPTas these transactions have satisfied the threshold level stipulated by the respective jurisdictions' rules/regulations/requirements on RPT. Thetasktoreviewand/orapprove these material/significant RPTs normally vestswith theAuditCommittee. Hence,to checktheAC'sterms ofreference.Other details, includingthe process and procedures,areacceptable.Note:Any cases ofnon-compliancewith prevailing rules/regulations/requirementspertaining to material/significant RPT is tobe dealt as penaltyasper itemB.2.1(P).Annual Report1
D.3.2Doesthecompanydisclosethenameoftherelatedparty and relationship for each material/significantRPT?Self-explanatoryAnnual Report0
D.3.3Does the company disclose the nature andvaluefor eachmaterial/significantRPT?Self-explanatoryAnnual Report0
D.4 Directorsandcommissioners dealingsin sharesof the company
D.4.1Does the company disclose trading in thecompany'sshares byinsiders?OECD Principle V (A):(3)Major shareownershipand voting rights
ICGN 3.5 Employee share dealing Companies should have clear rules regarding anytrading bydirectorsand employees in the company's own securities.
ICGN 5.5 Share ownership Everycompanyshouldhaveanddisclose a policy concerning ownership of shares of thecompanybysenior managersand executivedirectorswith theobjectiveof aligning the interests of these key executiveswith thoseof shareholders.The disclosure should preferably bepresentedintabularform showingthelevels ofholdingatthebeginningandattheend of the year,and alsotheaggregatechanges (boughtandsold)during theyear.Other forms ofdisclosurearealsoaccepted. Where thereis notradingbyinsiders,companies should makea statement to that effect.
Insidersrefertodirectors, members of managementor keyofficers(seniormembers ofmanagementonelevel belowtheboard), major shareholdersorconnected persons.Annual Report1
D.5 ExternalauditorandAuditor Report
D.5.1Are auditfeesdisclosed?OECD Principle V (C):Self-explanatoryAnnual Report1
Where the same audit firm is engaged forboth auditand non-auditservices,Anannualauditshouldbeconductedbyanindependent,competent andqualified, auditorin ordertoprovide an externaland objectiveassuranceto theboardand shareholders that the financial
statements fairlyrepresentthefinancial positionandperformanceofthecompany in all material respects.
OECD Principle V (D): External auditors shouldbeaccountableto theshareholdersand oweadutytothe companytoexercisedueprofessionalcare in the conduct of the audit.
ICGN 6.5 Ethical standards (Audit) Theauditors should observehigh-quality auditingandethicalstandards.Tolimit the possible riskof possible conflicts of interest,non-auditservicesand feespaid to auditorsfornon-auditservices shouldbe both approved in advancebytheaudit committeeanddisclosed intheAnnual Report.
D.5.2Are thenon-auditfeesdisclosed?Assign"Y"ifthecompanydisclosesnonauditfeesorwhenthecompanydisclosesthatthe auditor doesnotprovidenon-auditservices.Annual Report1
D.5.3Does the non-audit fees exceed the auditfees?If non-audit fees are more than the auditfees, then assign 'Y'.
If there is no disclosureof non-audit fees, assign "N/A"Annual Report1
D.6 Mediumof communications
Doesthecompanyusethefollowingmodesofcommunication?OECD Principle V (E):Channels for disseminating information shouldprovideforequal,timelyandcost-
D.6.1Quarterly reportingefficientaccesstorelevantinformationbyusers.
ICGN 7.1 Transparentand open communicationEvery companyshould aspire to transparent and open communication aboutitsaims,its challenges,its achievements and its failures.
ICGN 7.2 Timely disclosure Companies should discloserelevantand material information concerning themselves ona timelybasis,inparticular meeting market guidelines where they exist,soastoallowinvestorsto make informeddecisionsabout theacquisition, ownershipobligationsand rights,andsales of shares.Not necessarily in the form of publishedreports.Announcement /Companywebsite1
D.6.2CompanywebsiteSelf-explanatoryCompanywebsite1
D.6.3Analyst'sbriefingSelf-explanatoryAnnualReport/Announcement/Companywebsite1
D.6.4Mediabriefings/press conferencesMedia releases, per se, are not mediabriefings/pressconferences. There mustbe evidence ofactual conductof media briefings/pressconferenceduring theyear under review.AnnualReport/Announcement/Companywebsite1
D.7 Timely filing/releaseofannual/financialreports
D.7.1Isthe auditedannualfinancialreportreleasedwithin120 days fromthefinancialyear end?OECD Principle V (C)
OECD Principle V (E) ICGN 7.2 Timely disclosureThe number of days refers to the daysbetween thecompany's financial year end and thedateofannouncement.Announcement1
D.7.2Isthe auditedannualfinancialreportreleasedwithin90days fromthe financialyear end?ICGN 7.3 Affirmation of financialstatementsTheboard ofdirectorsand thecorporate officers ofthecompany shouldaffirmat least annuallythe accuracy of the company'sfinancialstatements orfinancial accounts.The number of days refers to the daysbetween thecompany's financial year end and thedateofannouncement.Announcement1
D.7.3Is the audited annual/financial reportreleased within60 days from the financial year end?The number of days refers to the daysbetween the company's financial year end and thedateofreleaseAnnouncement1
D.7.4Isthetrueandfairness/fairrepresentationoftheannualfinancial statement/reports affirmedbythe boardof directors/commissioners and/ortherelevant officersof thecompany?Assign"Y"onlyifthereisanopinionabouttrueand fairness/fairrepresentation.Annual Report1
D.8 Companywebsite
Doesthecompanyhaveawebsitedisclosingup-to-dateinformation onthe following:OECD Principle V (A)OECD Principle V (E) ICGN 7.1 Transparent and opencommunication
ICGN 7.2Timely disclosure
D.8.1BusinessoperationsDetails pertaining to the company's major productlinesorbusiness,includingthetypes(local/export) and locations of major plants/operations.Companywebsite1
D.8.2Financial statements/reports (current andprior years)The Annual Report/financial statements ofthecurrentandatleast theimmediate prior year mustbeavailable onthecompany's website.Otherwise,'N'.Companywebsite1
D.8.3Materials provided in briefings to analystsandmediaThesaidmaterialscanincludepresentationslides/notes,and/ormedia/newsreleases.Companywebsite1
D.8.4Shareholding structureThis refers to details in terms of majorclassificationsofthecompany'sshareholders and their shareholdings.Companywebsite1
D.8.5Groupcorporate structureApart from identifying the subsidiary,associates,JV/SPE,theshareholdinginterest(%)mustalso bedisclosed.Companywebsite1
D.8.6DownloadableannualreportThe Annual Report, in whole or in parts,shouldbe ina downloadable format. The formatisnormallypdf.Companywebsite1
D.8.7Noticeof AGM and/or EGMThiscanbeinHTMLformatordownloadabledocuments(.e.g. PDF,MS-Wordetc.).Companywebsite1
D.8.8Company's constitution (company's by-laws,memorandumandarticlesofassociation)ThiscanbeinHTMLformatordownloadabledocuments(.e.g. pdf,ms-word etc.).Companywebsite1
D.8.9Alloftheabove(D.8.1toD.8.8)areavailablein EnglishApartfromthecompanywebsiteitself,theitemsD.8.1toD.8.8shouldalsobeavailable in theEnglish language.Companywebsite1
D.9 Investor relations
D.9.1Doesthecompanydisclosethecontactdetails(e.g.telephone,fax,andemail)oftheofficer responsible for investor relations?ICGN 7.1 Transparent and opencommunicationDedicated contact details of a person ordepartmentresponsibleforinvestorrelations would besufficient.Annual Report/Companywebsite1
PART E - BOARD RESPONSIBILITIES
GuidingReference
Assessment Guidance/Notes toAssessorsSource Document/LocationofInformation
Points
E.1 Clearlydefined board responsibilities andcorporategovernancepolicyYN
E.1.1Aretherolesandresponsibilitiesoftheboardofdirectors/commissioners clearly stated?OECDPRINCIPLEVI:TheResponsibilitiesofthe Board (D)Theboard should fulfill certain key functions, including:1. Reviewing and guiding corporatestrategy, major plans of action,riskpolicy,annual budgetsand businessplans;setting performance objectives;monitoring implementation and corporate performance;and overseeingmajorcapital expenditures,acquisitionsanddivestitures.2.Monitoringthe effectiveness ofthe companysgovernancepracticesand making changes as needed.3.Selecting,compensating,monitoring and, when necessary, replacing key executives and overseeing succession planning.4. Aligning keyexecutiveand board remuneration with thelongerterminterests of the company and its shareholders.5. Ensuring a formal and transparentboard nomination and election process.6. Monitoring and managing potential conflicts ofinterest ofmanagement,board members and shareholders, includingTheAnnualReportshouldclearlylistouttheduties oftheboard such as overseeing the businessaffairsofthecompany, overseeing theprocessesforevaluating theadequacyof internalcontrolsand risk management systems,approving broad policies,strategies and objectivesof thecompany,etc.Annual Report/website1
misuse of corporate assets and abuse inrelatedparty transactions.7.Ensuringtheintegrityof thecorporations accountingandfinancial reportingsystems, including theindependentaudit,and that appropriatesystemsofcontrolareinplace, in particular,systemsforrisk management, financial and operational control,and compliancewith thelawand relevant standards.8.Overseeingtheprocess ofdisclosureand communications.
E.1.2Are thetypesofdecisionsrequiringboardofdirectors/commissioners' approval disclosed?OECDPRINCIPLEVI (D)This refers to the issues for which boardapproval isspecificallyrequired,such as acquisitionsand disposals,shareissuances, financial restructuring, etc. Watch for key words suchas "approval","reserved", "determines".Annual Report/website1
E.1.3Does the company disclose its corporategovernancepolicy /boardcharter?OECD PRINCIPLE V: Disclosure andTransparency(A) Disclosureshould include,butnotbe limited to, material information on:8.Governancestructures andpolicies,in particular,thecontent ofanycorporate governancecodeorpolicyandtheprocess bywhich itisimplemented.The company should disclose its owncorporategovernancepolicy or board charter forthistobeY. Thecompletepolicyora summaryofthepolicyshouldbe made available inthe annual report or website.
Stating thatthecompany hasadopted the code ofgovernancesetby theregulatorsand providing alinktothiscodeshould notbe considered ashaving thecompany's own corporate governance policy.Annual Report/website1
E.2 Codeof ethicsor conduct
E.2.1Doesthecompanyhaveacodeofethicsorconduct?OECD PRINCIPLE VI(C)Theboard should applyhigh ethical standards.Itshouldtake intoaccountthe interests of stakeholders. The boardhas a key role in setting the ethicaltone of acompany,not onlybyits ownactions,butalsoin appointingand overseeingkey executives andconsequently the managementin general. High ethical standardsareinthelongterminterestsof thecompanyasa meanstomakeit credible andtrustworthy,not onlyinday-to-day operationsbutalsowith respecttolonger termcommitments.Tomakethe objectives oftheboardclearand operational, many companieshavefoundit usefultodevelop companycodes ofconductbased on,inter alia,professional standardsandsometimes broader codes of behaviour. The latter might include a voluntary commitment by thecompany(including itssubsidiaries)to complywith theOECD Guidelinesfor MultinationalEnterprises whichreflectall four principles contained in theILO Declaration on FundamentalLabourRights. Company-wide codesserve asastandardfor conductbyboththe boardandkey executives, setting theframeworkfor the exercise of judgement in dealing with varying and often conflicting constituencies. Ata minimum,the ethical codeshould set clear limits on the pursuit of privateSelf-explanatoryAnnual Report/website1
E.2.2Are the details of the code of ethics orconduct disclosed?Thedetailsofthecodeshouldbeprovidedsuch aswhoitcovers,whataretheitems being covered, how are breaches handled, etc.Justhavingafewsentencesonthecode ofethicsin theAnnualReport orwebsite should not begiven aY.Annual Report/website1
E.2.3Does the company disclose that alldirectors/commissioners, senior management andemployeesarerequiredto complywiththe code?The company should disclose that all thethree partiesindicated should comply with thecode.If it onlyappliestoemployees,this should be'N'. Companycan scoreYif ithas separatecodeof ethicsfordirectors.Annual Report/website1
E.2.4Does the company discloses how itimplements andmonitors compliance with the codeof ethicsor conduct?interests,includingdealingsinthesharesofthecompany.An overallframeworkfor ethical conductgoes beyond compliance withthelaw,which shouldalwaysbea fundamental requirement.This could involve items such as:-communicatingthe code toall existingand new employees and directors- making thecodeavailableonthecompany intranet for ease of access- requiring all parties todeclareannuallythat theyhavecompliedwiththecode of ethicsor conductAnnual Report/website1
E.3 Corporate Vision/Mission
E.3.1Does the board of directors/commissionersperiodically reviewand approve the vision andmission?Whilenotexplicitlystatedinmostcodesofcorporategovernance,thisisconsistentwith mostcodesspecifyingtheroles oftheboard asincluding setting thedirection and providing strategicleadership.The company should specifically state thattheboard hasreviewed and approved the visionandmissionatleastonceduringthe last5years.Disclosing onlythecompany's visionand mission should notbe given a 'Y'.Annual Report/website1
E.4 BoardStructure &Composition
E.4.1Doestheboardofdirectors/commissionerscompriseatleastfivemembersand no more than 12 members? (i.e.,between5- 12members)UK Code B.1 Supporting Principle states:Theboardshouldbeofsufficientsizethat therequirementsof thebusinesscan bemet and changestotheboard'scomposition and thatof its committees canbe managed withoutunduedisruption,and should notbe solargeas tobeunwieldy.Mostcodes of corporate governance specify that the board should be ofappropriatesizebutshould not betoolarge.Therangeof5to12isbasedoncompaniesneedingenoughboard memberstoensure adequate range of competencies and diversityontheonehand, andnotbeingtoo large as to become cumbersome on the other. Empirically,theaverageboardsize of largecompaniesindeveloped marketsis between10to 11, andthereissubstantial research thatoverlylargeboards are associated withlower value. Some companies willhave board changes during thefinancialyear.The numberofboard membersasatthedatetheAnnualReport hasbeen published should betaken into accountwhen answering thisquestion. However, directorsproposed for appointmentbased on shareholder approval attheAGMshouldnot beincluded.In addition, allquestions which uses information onnumberof directors(suchas board sizeand percentage of independent directors)should excludealternate directors.Annual Report1
E.4.2Do independent, non-executivedirectors/commissionersnumber at least three andmake upmore than50% of the boardofdirectors/commissioners?OECD PRINCIPLE VI (E)Inordertoexerciseitsdutiesof monitoring managerial performance, preventing conflictsof interest and balancing competing demands on thecorporation,itis essential thattheboard is abletoexercise objective judgement. In thefirst instance thiswill mean independenceand objectivity withrespect to managementwithimportant implicationsfor thecompositionand structure of theboard. Boardindependence inthesecircumstancesusuallyrequiresthat asufficientnumber ofboardmembers will need tobe independent of management. The ASX Code recommends at least a majority ofindependent directors,whilethe UK Coderecommends atleast halfofthe board,excludingthe Chairman,be independent directors. The minimumof three independentdirectors is to ensure thatcompanies withsmallboardshave enoughindependentdirectors (notethat stock exchangerules often requireatleast twoindependentdirectors).The percentage of independent directorsshouldbecomputedbydividingthenumber of independentdirectors bythetotal number ofdirectors.Toscorea Y,thispercentage shouldbegreaterthan50%andthenumber of independentdirectors must also be at least3.Annual Report1
E.4.3Does the company provide a definition ofindependenceinits AnnualReport?OECD PRINCIPLE VI:(E)The boardshouldbe abletoexercise objectiveindependent judgementon corporate affairs.
Indefiningindependentmembers ofthe board,someprinciples of corporate governancehavespecified quitedetailed presumptionsfornonindependence which arefrequentlyreflected in listing requirements. Whileestablishingnecessary conditions,such negativecriteriadefining when an individualisnotregarded as independentcanusefully becomplemented bypositiveexamplesof qualitiesthatwill increasetheprobability of effective independence.
Independentboard memberscan contribute significantlytothedecision-making ofthe board.Theycanbringan objective viewto theevaluation oftheperformanceofthe board andmanagement.IfthecompanyonlystatesthattheyfollowthedefinitionofindependencegivenintheCode/ Listing Requirements, this should be'N'. The company should give a definition suchas:independentfrommanagement or fromsubstantial shareholders or has no relationshipwith thecompany,etc.Annual Report1
E.4.4Aretheindependent directors/commissionersindependent of management and major/substantial shareholders?OECD PRINCIPLE VI (E)Inordertoexerciseitsdutiesof monitoring managerial performance, preventing conflictsof interest and balancing competing demands on thecorporation,itis essential thattheboard is abletoexercise objective judgement. In thefirst instance thiswill mean independenceand objectivity withrespect to managementwithimportant implicationsfor thecompositionand structureoftheboard.BoardindependenceIftheyare,thecompanyshouldclearlystatethisintheAnnualReportthatALL the independentdirectorsareindependent of managementand major/substantial shareholders. In addition, It is a 'N' where oneor moreof theindependentdirectorsare closelylinked toa major/substantial shareholder (e.g.,business associates)evenif thecompanyassertsindependence.Annual Report1
inthesecircumstancesusuallyrequiresthatasufficientnumber ofboardmembers will need to be independent of management.
The variety ofboard structures, ownership patternsandpracticesin differentcountries willthusrequiredifferent approachestothe issue of board objectivity. In manyinstances objectivityrequires that a sufficient number ofboardmembersnotbe employedby the company oritsaffiliatesandnotbeclosely related tothecompanyorits management through significant economic, family or other ties.Thisdoesnotprevent shareholdersfrombeing board members. In others, independencefromcontrolling shareholders oranother controlling body willneedtobe emphasised,inparticularif the exanterightsofminorityshareholders are weak and opportunities to obtain redressarelimited.This hasledtoboth codes, and thelawin somejurisdictions, to callfor someboard members tobe independent of dominantshareholders, independence extending tonotbeing their representativeorhaving closebusinessties with them.
E.4.5Doesthecompanyhaveatermlimitofnineyearsor less for its independent directors/commissioners?Previous GN:ICGN: 2.4.3 Independence Notallnon-executivedirectors willbefully independentoftheexecutives orfrom dominantshareholders.Among thefactors whichcanimpactthe independence ofnon- executivedirectorsare thefollowing:(a) former employmentwiththecompany, unless there is an appropriate period of yearsbetweentheend oftheexecutiverole andjoiningtheboard;(b) personal,business or financial relationshipsbetween the directors and the company, its key executives or large shareholders;(c) length oftenure;and(d)thereceiptofincentive paywhich alignsthedirectorsinterestswith those oftheexecutives ratherthanthe shareholders. Whiletheseareimportant factors,independenceis more thananything astate ofmind,requiringadisciplinedand challengingapproachtotherole. Every companyshould makesubstantive disclosuresastoitsdefinition of independenceanditsdeterminationas to whethereach member ofitsboard is independent. Anydeviation fromlocal best practice onindependenceshould be disclosed andexplained. Notwithstanding anyperceivedlack ofindependence,all directorsarefiduciariesandsoareobliged toexerciseobjectivejudgmentin thebest interestsofthecompany.Allareexpected tobringindependenceofmind toboard decisions.Toscorea'Y',termlimitshouldbenomorethannineyears.Annual Report/website0
UKCGCode(June2010): B.1.1Theboard shouldstateitsreasonsifitdeterminesthat a director is independent notwithstanding theexistence ofrelationships or circumstances which mayappear relevantto its determination, including if the director hasserved ontheboard for morethannine years fromthedate of theirfirst election.B.2.3 Non-executive directors shouldbeappointedfor specifiedterms subjecttore-election and tostatutory provisionsrelatingtotheremoval ofa director. Any termbeyond six years for a non-executivedirectorshould besubjectto particularlyrigorous review,and should take intoaccounttheneed forprogressive refreshing of the board.
Current:UKCODE(JUNE2010):Non-executivedirectorsshouldbeappointedforspecifiedtermssubjecttore-electionandtostatutoryprovisionsrelatingtotheremovalofadirector.Anytermbeyondsixyearsforanon-executivedirectorshouldbesubjecttoparticularlyrigorousreview,andshouldtakeintoaccounttheneedforprogressiverefreshingoftheboardandtosuccessionforappointmentstotheboardandtoseniormanagement,soastomaintainanappropriatebalanceofskillsandexperiencewithinthecompanyandontheboard.
E.4.6Has the company set a limit of five boardseatsinpublicly-listedcompanies thatan individualdirector/commissioner mayhold simultaneously?OECD PRINCIPLE VI (E)(3) Board members should be able to committhemselves effectivelytotheir responsibilities.Service ontoo manyboardscaninterfere withtheperformance of boardmembers. Companiesmaywishto considerwhether multipleboard membershipsbythesame personarecompatible with effective board performanceanddisclosetheinformation to shareholders.This refers to directorships in listedcompanies and notprivatecompanies. The limit of 5isconsidered reasonablein light of regulators,institutional investors,and shareholderanddirector bodiesspecifying around fiveor sixasthemaximumnumber.Annual Report0
E.4.7Does the company have any independentdirectors/commissionerswhoserveonmore thanfiveboardsofpublicly-listedcompanies?Annual Report1
E.4.8Does the company have any executivedirectorswhoserveonmorethantwoboards of listedcompaniesoutside of thegroup?This refers to directorships in listedcompaniesand notprivatecompanies. Executive directorsare expected to focus their attention on thecompany/group in which theyareemployed.Annual Report0
E.5 SkillsandCompetencies
E.5.1Does at least one non-executivedirector/commissionerhave prior workingexperience inthemajor industry the company is operating in?ICGN: 2.4.3 IndependenceAlongsideappropriate skill,competenceand experience, andthe appropriate context to encourage effectivebehaviours, one oftheprincipal features of a well-governed corporation is the exercisebyitsboard of directors ofindependent judgement, meaningjudgementinthebestinterests ofthe corporation,free of anyexternalinfluence on anyindividualdirector, or theboardasawhole.In order toprovidethis independentjudgement, andto generate confidence that independent judgement is beingapplied,aboard shouldincludea strong presence of independent non-executive directors withappropriate competenciesincludingkeyindustry sector knowledgeand experience. Thereshould beat leasta majority of independentdirectors on each board.If a person has only held a non-executivedirectorpositionin acompanyinthesame industry,thatwouldnot beconsideredas having industryexperience.Annual ReportCorporate website or the Exchangewebsite mayneedtobe used toidentifythemajor industry thecompanyisin1
E.5.2Doesthecompanydiscloseaboardofdirectors/commissionersdiversity policy?ASX CodeRecommendation 3.2Companies should establish a policy concerningdiversityanddisclosethepolicy or asummary of that policy. Thepolicyshould includerequirementsforthe board toestablish measurable objectives for achievinggender diversityandfortheboardtoassess annually both the objectives and progress in achieving them.
Regulationsand codesofcorporategovernancein manydeveloped markets nowincorporateboard diversityasa considerationin board compositionThe company has to clearly disclose thepolicyfora'Y' tobegiven. Juststating that theyhave aboarddiversitypolicyshouldnot be taken as 'Y'.
Diversity canrefer to diversity in ethnicity, age orgender.Annual Report/website0
E.6 BoardChairman
E.6.1Do different persons assume the roles ofchairman andCEO?OECD PRINCIPLE VI(E)The boardshouldbe abletoexercise objectiveindependent judgementon corporate affairs. Inanumber ofcountries withsingle tier boardsystems, the objectivity of theboard and its independence from management maybestrengthenedbytheseparationof theroleofchiefexecutive andchairman,or, iftheserolesarecombined,bydesignating a leadnon-executive directortoconvene or chairsessions of theoutsidedirectors. Separation of the two posts may be regardedasgoodpractice, asitcanhelpto achievean appropriatebalance of power, increaseaccountabilityandimprove the boardscapacityfordecision making independent of management.
UK Code (June 2010) A.3.1Thechairman should on appointment meettheindependence criteriasetoutin B.1.1below.A chief executiveshouldnotgo ontobechairmanof thesamecompany.If, exceptionally,aboard decidesthatachief executive shouldbecomechairman, the boardshouldconsult majorshareholdersin advanceandshould setoutitsreasonsto shareholdersatthetime of theappointment and in the next Annual Report.
ASX CodeRecommendation 3.2ThechiefexecutiveofficershouldnotgoonIf the chairman is an executive chairman,assign a "N"Annual Report/website10
E.6.2Is the chairman a non-executivedirector/commissioner?Self-explanatoryAnnual Report/website10
E.6.3Is the chairman an independentdirector/commissioner?Please note that while all independentdirectors arenon-executive, notall non- executivedirectors areindependent.If the AnnualReport/website onlystatesthat the chairman isnon-executiveand noother information isgiven,thisshould be'N'.Annual Report/website10
E.6.4Is the chairman the current or immediatepastCEO?Self-explanatoryAnnual Report/website01
NOTES: D.1.1. to E.5.2., (DISCLOSURE & TRANSPARENCY and BOARD RESPONSBILITIES) ALI scored 54 out of 66 or 82% PERFORMANCE.
to becomechairof the samecompany.Aformer chiefexecutive officer will notqualify as an independent director unless there has been a period of atleast three years between ceasing employmentwith the companyand servingon theboard.
E.6.5Are the role and responsibilities of thechairman disclosed?ICGN: 2.5 Role of the ChairThechair has thecrucial function of setting therightcontextinterms ofboardagenda, the provisionof information to directors, andopenboardroomdiscussions, to enable thedirectors togeneratethe effectiveboard debateand discussion and toprovidethe constructivechallengewhich thecompany needs.Thechairshould worktocreateand maintaintheculture of opennessand constructivechallenge whichallowsa diversity of viewstobe expressed...Thechair should beavailableto shareholdersfor dialogueonkey matters ofthecompanys governanceand whereshareholdershave particular concerns.The company should give detailedinformationregarding theroleand responsibilities of the chairman instead of one or twostatements. For example, stating thatthechairman isresponsibleforboard proceedingswithoutdisclosing any other informationshould notbetaken as'Y'.Annual Report/website10
E.7 Boardmeetingsand attendance
E.7.1Are the board of directors/commissionersmeetingsscheduled before or at the beginningof the year?Schedulingboardmeetingsbeforeoratthebeginning ofthe year wouldallowdirectors toplan aheadtoattend such meetings, therebyhelpingtomaximiseparticipation, especiallyas non-executive directorsoften haveothercommitments. Additionaladhoc meetingscanalwaysbe scheduledifand whennecessary. Itiscommonpracticefor boards in developed markets to scheduleCompanieswhichmerelystatethattheyheldacertainnumber ofscheduledmeetings shouldbescoredas'N',asthey maynotbe scheduled well in advance.Annual Report10
meetingsin thisway.
E.7.2Does the board of directors/commissionersmeetat leastsix timesperyear?WORLDBANK PRINCIPLE 6(VI.I.24)Doestheboard meetatleastsix times per year?
New GN: INDOSCORECARDE.10.Howmanymeetingswereheldinthepastyear?Iftheboardmetmorethansixtimes,thefirmearnsa'Y'score.Iffourtosixmeetings,thefirmwasscoredasfair,whilelessthanfourtimeswasscoredasNThis refers to meetings held during thefinancialyear. Anymeetingsheldafterthe financial year should notbetaken into account. For example, if the financial year endis31December 2010andthecompany heldameetinginJanuary2011,themeeting in Januaryshould notbeincluded in thetotal. Acompanywhichmerelydisclosesapolicy of meeting six or moretimesa year should be scoreda "N"unlessitis clearthattheboard did meetatleast6times.Annual Report10
E.7.3Has each of the directors/commissionersattendedat least 75% of all the board meetingsheld duringtheyear?OECD PRINCIPLE VI (E)(3) Board members should be able to committhemselves effectivelytotheir responsibilities.
Specificlimitations maybeless important than ensuring thatmembers ofthe board enjoylegitimacy andconfidenceintheeyes ofshareholders.Achieving legitimacywould alsobefacilitated bythepublication of attendancerecords for individual board members(e.g.whethertheyhavemissed a significantnumberof meetings)andany otherworkundertaken onbehalfofthe board and theassociated remuneration.Attendancebyalternatedirectorsshouldbedisregarded.Annual Report10
E.7.4Does the company require a minimumquorumof at least2/3forboarddecisions?WORLDBANK PRINCIPLE 6(VI.I.28)Isthereaminimumquorumofat least2/3for board decisionstobevalid?Self-explanatoryAnnual Report/website (In boardcharter/articles)10
E.7.5Did the non-executivedirectors/commissioners ofthe company meetseparately at leastonceduringtheyear withoutany executives present?WORLDBANK PRINCIPLE 6(VI.E.1.6) Does the corporate governance frameworkrequire orencourageboards to conductexecutivesessions?Thecompanyhastospecificallystatethatthenon-executive directors/commissioners met atleast onceduring the year withoutthe presence of executivedirectors.Statements containing "expected to meet"should notbe taken as Y. Companies whichhave a totally non- executive boardshould bescoreda "Y".Annual Report10
E.8 OrientationProgramme for NewDirectors
E.8.1Does the company have orientationprogrammesfor new directors/commissioners?This item is in most codes of corporategovernance.Just disclosing that the company has anorientationprogramme isnotsufficient. Details onwhattheprogrammecontains should bedisclosed.Annual Report10
E.9 DirectorTraining
E.9.1Does the company have a policy thatencourages directors/commissioners to attend on-going orcontinuous professional educationprogrammes?OECD PRINCIPLE VI (E)(3) Board members should be able to committhemselves effectivelytotheir responsibilities.
Inordertoimproveboard practicesandthe performance ofits members,anincreasing number of jurisdictionsare now encouraging companiesto engagein board training and voluntaryself-evaluation thatmeetsthe needsof theindividual company.This might includethatboard membersacquire appropriateskillsupon appointment,and thereafterremainabreast ofrelevantnew laws,regulations,and changing commercial risksthroughin-housetraining and external courses.Stating that the company has a trainingbudgetshould beaccordeda 'Y'.Annual Report10
E.10 Access toinformation
E.10.1Are boardpapers for board ofdirectors/commissioners meetings provided to the board atleast five business days in advanceof theboardmeeting?OECD PRINCIPLE VI(F)In ordertofulfiltheirresponsibilities, boardmembersshouldhaveaccess to accurate, relevantand timely information.
Board membersrequire relevant information on a timelybasisin order to supporttheirdecision-making. Non- executive boardmembersdo not typically havethesameaccesstoinformation askey managers withinthecompany.The contributions ofnon-executive board members tothecompanycan be enhanced byproviding accesstocertain keymanagers within thecompany suchas, forexample, thecompany secretary and theinternal auditor,andrecourse to independent external adviceattheexpenseof the company.Inorder tofulfilltheir responsibilities,board membersshould ensurethat they obtainaccurate,relevant and timely information.
WORLDBANK PRINCIPLE 6 (VI.F.2)Doessuch information need tobe provided totheboardatleastfivebusiness daysin advanceoftheboard meeting?The company should clearly disclose thatboardpapersareprovided toboardmembers atleastfivebusinessdays beforetheboard meeting. Ifthecompanystates"on average" or only5days, without specifyingitis 5 business or clear days,thisshould beN.Annual Report10
E.10.2Does the company secretary play asignificant rolein supporting the board in dischargingits responsibilities?OECD PRINCIPLE VI (F)
ICSA Guidance on theCorporateGovernanceRoleoftheCompanySecretaryThe company should clearly disclose thedutiesofthecompany secretarysuchas assisting theChairman in setting theboard agenda,facilitating training of directors, keeping directorsupdated regarding any relevant statutory and regulatory changes, etc.Annual Report10
E.10.3Is the company secretary trained in legal, accountancy or company secretarialpractices?WORLDBANK PRINCIPLE 6 (VI.D.2.12) Do company boards have aprofessionaland qualified company secretary?Thecompanyhas todisclose the educational/professional qualifications andworkexperienceofthe companysecretary forthistobe Y.The qualificationsand experienceneednotbe relatedtosecretarial duties. Company Secretary must have either: i. degree/professional qualification in legal or accountancy;ii. chartered secretary qualification; or iii.basicdegree coupledwithcorporate secretarial training.Annual Report10
E.11 NominatingCommittee
E.11.1Does the company have a NominatingCommittee (NC)?OECD PRINCIPLE II (C)(3)Effectiveshareholderparticipationin key corporategovernance decisions,suchasthe nominationand election ofboard members, should befacilitated. Shareholders shouldbeabletomaketheir viewsknown onthe remunerationpolicyforboardmembers and key executives.Theequitycomponentof compensationschemesforboard members andemployeesshould besubjectto shareholder approval.Some companies may not have a separatecommitteehandlingnomination matters.For suchcompanies, QE.11.2- 11.7shouldbe taken asN/A =NotApplicable. However, pointsshould stillbegiven fornomination matterssuchas election orre-election of directors,performanceassessment ofboard, directorsandcommittees,etc.regardless of whether a committee or the board is handling them.
Note:SomecompaniesmayhaveacombinedAnnual Report10
Withrespecttonominationofcandidates,boardsin manycompanieshave established Nominating Committeestoensureproper compliancewith established nomination procedures and tofacilitateand coordinate the search for a balanced and qualified board. Itisincreasinglyregarded asgood practicein manycountries forindependent boardmemberstohavea keyrole onthis committee. Tofurther improvetheselection process,the Principles alsocallforfull disclosureof the experienceand background ofcandidatesforthe boardandthe nomination process,which willallowan informedassessmentof theabilitiesand suitability of each candidate.
OECD PRINCIPLE VI (E) (1)Boardsshould considerassigning a sufficient number of non-executive board memberscapable ofexercising independent judgementto tasks where there is a potentialforconflictofinterest.Examples of suchkeyresponsibilities areensuringthe integrityoffinancialand non-financial reporting,thereview ofrelatedparty transactions,nomination ofboard members and keyexecutives, and board remuneration.nominatingandgovernancecommitteeoracombinednominating and Remuneration Committee. If theduties of thecommitteein handlingnomination matterssuchasboard appointments,re-election and evaluation are disclosed, thequestions shouldbeanswered asif therearetwoseparatenominating and Remuneration Committees.
Inthisinstance,Q E.11.2-11.7shouldbe answered using the composition and meetingsof thecombinedcommittee.
E.11.2Does the Nominating Committee compriseofa majority of independent directors/commissioners?TheAnnualReportshouldidentifywhothemembersof theNominatingCommitteeare and ofthese,whothe independentdirectors are.Ifmorethan50% ofthecommittee comprisesof independent directors,thisisY.Annual Report10
E.11.3Is the chairman of the NominatingCommittee an independent director/commissioner?This item is in most codes of corporategovernance.The Annual Report should clearly indicatethat the chairman of the NominatingCommitteeisindependent.Annual Report10
E.11.4Does the company disclose the terms ofreference/governancestructure/charterof the NominatingCommittee?OECD PRINCIPLE VI (E)(2)When committeesoftheboard are established,their mandate,compositionand workingproceduresshouldbewell defined and disclosed by the board.
Whiletheuseofcommittees mayimprove thework oftheboardthey may alsoraise questions about the collective responsibility oftheboard and ofindividualboard members.In order toevaluatethemerits of boardcommitteesit isthereforeimportant thatthemarketreceives afullandclear picture of their purpose,duties and composition.Such information isparticularly importantin an increasing number of jurisdictionswhere boardsareestablishing independentAuditCommittees with powers tooverseetherelationship withtheexternal auditorand toactinmanycases independently. Other such committees includethosedealing with nomination and compensation. Theaccountability of therest of theboard and the board as a whole should be clear. Disclosure should not extendtocommitteessetuptodealwith, forexample, confidentialcommercial transactionsThis refers to the responsibilities of theNominatingCommittee.Thecompanyshould clearlylisttheseout.Annual Report/website10
E.11.5DoestheAnnualReportdisclosethenumberofNominatingCommitteemeetingsheld?This refers to meetings held during thefinancialyear. Anymeetingsheldafterthe financial year should notbetaken into account. For example, if the financial year endis31December 2010andthecompany heldameetinginJanuary2011,themeeting in Januaryshould notbeincluded in thetotal.Annual Report10
E.11.6Did the Nominating Committee meet atleasttwiceduringthe year?This refers to meetings held during thefinancialyear. Anymeetingsheldafterthe financial year should notbetaken into account. For example, if the financial year endis31December 2010andthecompany heldameetinginJanuary2011,themeeting in Januaryshould notbeincluded in thetotal.Annual Report10
E.11.7Is the attendance of members atNominatingCommittee meetingsdisclosed?Given theresponsibilitiesoftheNCspeltout incodes ofcorporategovernance,theNCis unlikelytobefulfilling theseresponsibilities effectivelyif itis onlymeeting oncea year. Globally,theNCoflarge companieswould meetseveral timesayear.This would normally be in tabular formshowingtheattendance byeachNominating Committee member. However, if the companystatestherewas 100%attendance, thiscan stillbetaken asY.Annual Report10
E.12 BoardAppointmentsandRe-Election
E.12.1(switchwithE.12.2)Doesthecompanydisclosethecriteriausedinselectingnewdirectors/commissioners?OECD PRINCIPLE II (C) (3)To further improve the selection process, thePrinciplesalsocallfor fulldisclosure of the experience and background of candidates for the board and the nomination process,which willallowan informedassessmentof theabilitiesand suitability of each candidate.
OECD Principle VI (D) (5)Ensuringaformaland transparentboard nomination and election process. These Principlespromoteanactiverolefor shareholdersinthenominationand election ofboard members. Theboardhasan essentialrole toplayinensuringthatthis andotheraspectsof thenominationsand electionprocessarerespected.First, while actualproceduresfornomination maydiffer among countries,theboard oranomination committeehasaspecial responsibilityto makesurethat established procedures are transparent and respected. Second, the boardhasa keyroleinidentifyingpotential membersfortheboard with theappropriate knowledge,competenciesandexpertisetoThe company should clearly list out thecriteria being used toselectnewdirectors suchasintegrity,corecompetencies,ability tocommit timetothecompany,pasttrack record,etc.Annual Report/website10
E.12.2(switchwithE.12.1)Does the company disclose the processfollowedin appointing new directors/commissioners?This refers to how the search for newdirectorsandassessment ofsuitabili
