Chemical Company of Malaysia Berhad Annual Report 2019

The Group has established an in-house internal audit function (“Group Assurance”) which resides within the Group Risk, Integrity and Assurance Department. The Group Internal Auditor reports and make recommendations directly to the ACC. The Group Internal Auditor is accorded with appropriate standing and authority to enable the discharge of its duties with independence and without undue influence. The Group Internal Auditor has unfettered access to the relevant personnel, properties and records within the Group so as to discharge its functions in an unbridled manner. Communication with stakeholders As stewards of the Company, the Board strives to foster a candid and transparent relationship with the stakeholders of the Company. Accordingly, the Board seeks to ensure that there is continuous communication and dissemination of information to stakeholders through a plethora of platforms including the Company’s website, announcements to Bursa Malaysia Securities Berhad as well as social media sites. The Company’s website contains recent announcements, past and current reports to shareholders, including annual reports, sustainability reports, summaries of key financial data, operational briefing presentations as well as copies of recent notices and minutes of general meetings. During the year in review, the Group Managing Director has also supplemented these efforts by engaging potential institutional investors and internal stakeholders through regular briefing sessions and engagements. The Board has adopted a Communication Policy and Corporate Disclosure Policy that governs communication methods between the Group and its stakeholders. Conduct of general meeting The Annual General Meeting (“AGM”) serves as an invaluable platform for shareholders to engage the Board and Senior Management in a productive dialogue and provide constructive feedback that contributes to the overall betterment of the Group. During the previous AGM, all Directors were present to provide clear and meaningful response to shareholders’ questions. The Lead Partner or representative from the external audit firm would also be present to answer questions from shareholders relating to the external audit process and outcome. Where required the Company’s solicitors would also be present to provide clarification on matters involving the Company’s legal matters. In order to encourage shareholders’ participation, the Board ensures the location of the general meetings is easy to reach or conveniently accessible to shareholders. In addition, shareholders have been provided with at least 21 days’ notice for the upcoming AGM to accord them with adequate time to prepare and ultimately make informed decisions during the AGM. The notice for AGM outlines the resolutions to be tabled during the said meeting and is accompanied with explanatory notes and background information where applicable. The turnout of shareholders at the Company’s AGM has always been encouraging. A total of 493 shareholders and 668 proxies attended the AGM in 2019. The Chairman of the Board chaired the meeting and had provided fair opportunity and time to the shareholders to exercise their rights to raise questions and recommendations. Shareholders present at the AGM were able to cast their vote electronically although this facility has yet to be offered to remote shareholders who were not able to attend the said AGM physically. Focus areas during the year The Company continued to focus on its value creation plan in growing the chemicals and polymers business of the Group. The Board played a crucial role in providing the direction on the growth strategy of the Group in order to successfully attain the long-term vision for the Group. As the Company is also under the close scrutiny of institutional investors, there is no room for neglect in its corporate governance practices. During the year in review, the Board’s focus on corporate governance revolved around the following areas: | Corporate Governance Overview Statement | 78 CHEMICAL COMPANY OF MALAYSIA BERHAD