EXCEL FORCE MSC BERHAD Annual Report 2018

29 EXCEL FORCE MSC BERHAD (570777-X) ANNUAL REPORT 2018 Corporate Governance Overview Statement (cont’d) PRINCIPLE B- EFFECTIVE AUDIT AND RISK MANAGEMENT (cont’d) I Audit Committee (cont’d) 10.0 Companies have an effective governance, risk management and internal control framework and stakeholders are able to assess the effectiveness of such a framework. The Group has outsourced its internal audit function to an independent consultant firm. The internal audit function covers all material controls including financial, operational and risk management functions. The internal audit findings are reported to the Audit Committee every quarter and the corrective actions are taken by the relevant departments. The AC also decides on internal audit function amongst others; • Appointment of the internal auditors; • Scope of work of internal auditors; • Performance evaluation; and • Budget. PRINCIPLE C -INTEGRITY IN CORPORATE REPORTING AND MEANINGFUL RELATIONSHIP WITH STAKEHOLDERS I Communication with Stakeholders 11.0 There is continuous communication between the Company and shareholders to facilitate mutual understanding of each other’s objectives and expectation. Stakeholders are able to make informed decisions with respect to the business of the Company, its policies on governance, the environment and social responsibility. The Board believes the dialogue with stakeholders is a necessary and beneficial process as it enables the company to understand stakeholders’ concerns and to take these concerns into account when making decisions. The Company has established an investor relation website to keep our shareholders and investors updated on latest development of the Company. It includes announcements released to Bursa Securities, including quarterly financial results and annual reports. II Conduct of General Meeting 12.0 Shareholders are able to participate, engage the Board and senior management effectively and make informed voting decision at general meetings. The Annual General Meeting (“AGM”) remains the principal forum for dialogue with shareholders where they are encouraged to meet the Board to have greater insight into the Groups’ operations. The shareholders can participate and raise questions regarding the business operations and financial performance and position of the Company. The Board together with the external auditors and the Company Secretaries will provide feedback and responses to the shareholders’ queries. The Company sends out the Notice of AGM and Annual Report to shareholders at least twenty-eight (28) days before the meeting as required under MMLR in order to facilitate full understanding and evaluation of the issues involved. As for special business items appearing in the Notice of AGM, a full explanation is provided to the shareholders on the effect of the proposed resolution emanating from the special business item. All resolutions set out in the notice of general meetings will be carried out by poll voting. The Board will make announcement of the detail results showing the number of votes cast for and against each resolution at general meetings. To facilitate greater shareholder participation, the Board will arrange a question and answer session during the AGM in the presence of the Directors.