22
FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT 2014
Principle 1 – Establish clear roles and responsibilities (Cont’d)
1.2 Board should establish clear roles and responsibilities in discharging its fiduciary and leadership functions
(cont’d)
Succession planning
The Board views succession planning as important for business continuity. Key positions which are vacated due
to retirement and/or resignation are filled quickly to avoid business interruption. The issue of succession planning
is deliberated at Board meetings such that pertinent actions are taken to provide for the orderly succession of
senior management.
Overseeing the development and implementation of a shareholder communications policy for the Company
The Company has, on its interactive website, a dedicated Investor Relations section where shareholders can
communicate with the Board through the designated Investor Relations officer. The Board has also identified a Senior
Independent Director, namely Mr. Aaron Sim Kwee Lein to whom the concerns of stakeholders and shareholders
pertaining to the Company may be conveyed.
Reviewing the adequacy and integrity of the management information and internal controls system
of the Company
The Board acknowledges the importance of the adequacy and integrity of the information and internal controls
system of the Company. Details of the Group’s internal control system, including how the Board reviews its adequacy
and operating effectiveness, are set out in the Internal Control Statement in this Annual Report.
1.3 The Board should formalise ethical standards through a code of conduct and ensure its compliance
The Company has in place a Code of Conduct for its Directors and employees and it is available on the Company’s
website.
The Board also has in place Whistle Blowing Policies and Procedures for employees to raise genuine concerns,
without fear of reprisal, about possible improprieties on matters pertaining to financial reporting, compliance,
malpractices and unethical business conduct within the Group.
1.4 The Board should ensure that the company’s strategies promote sustainability
The Board considers sustainability in its business operations. As such, it recognises the need for the Company to
address sustainability in its business strategy, taking into consideration the governance, social and environmental
aspects. The Corporate Sustainability Statement in this Annual Report provides further details on how efforts on
sustainability are taken by the Board and Management.
1.5 The Board should have procedures to allow its members access to information and advice
The Board Charter provides a procedure for Directors to access information and independent advice in the discharge
of their stewardship role, for example Directors may seek independent legal, financial or other advice as they
consider necessary at the expense of the Company as a full Board or in their individual capacity, in the furtherance
of their duties. Management is required to supply the Board and Committees with information in a form, timeframe
and quality that enables the Directors to effectively discharge their duties. The Directors are provided with Board
papers prior to each meeting to evaluate the proposals and, if necessary, to request for additional information.
1.6 The Board should ensure it is supported by a suitably qualified and competent company secretary
The Company Secretaries of the Company are suitably qualified and competent to support the Board. The Board
is regularly updated by the Company Secretaries on the latest regulatory updates. During the financial year, the
Board was briefed by the Company Secretaries on the amendments to the Listing Requirements in respect of the
shortening of the time frame for the periodic reporting to Bursa Securities. The Directors were briefed on the public
consultation paper on the various changes to the Listing Requirements.
The Board has access to the advice and services of the Company Secretaries who are responsible for ensuring
that the established procedures and relevant statutes and regulations are complied with.
CORPORATE GOVERNANCE
STATEMENT
(cont’d)
