KUB Malaysia Berhad Annual Report 2021

Corporate Governance Overview Statement External Auditors Assessment The BAC has a transparent relationship with the External Auditors and meets them without the presence of the Management at least twice a year. The BAC undertakes an annual assessment of the performance, suitability, objectivity, professionalism and independence of the External Auditors in order to recommend their re-appointment. The assessment considers the openness in communication with the lead audit engagement partner and engagement team. The performance and independence checklist for the External Auditors is provided in the Charter. Continuous Professional Development The BAC acknowledges the need for continuing education and training. Particulars of the training programmes attended by Directors are included in the CG Report. Risk Management and Internal Control Framework The Board Risk Management Committee (‘BRMC’) oversees the risk management activities of KUB Group. All three (3) members of the BRMC are an Independent Non-Executive Director. The BRMC periodically reviews the Enterprise Risk Management Framework (‘Framework’) and processes based on the Statement on Risk Management and Internal Control Guidelines for Directors of Listed Issuers to ensure their continued relevance. The establishment of the Framework are guided by the principles and processes outlined in MS ISO 31000: Risk Management - Principles and Guidelines. Internal Audit Function Internal audit is independent from the Management and the activities under its review. KUB Group Risk and Audit Division assists the BAC in discharging its duties and responsibilities. The Terms of Reference of the internal audit function is spelt out in the Internal Audit Charter. The principal role of internal audit is to undertake independent, regular and systematic reviews of the internal control systems in order to provide a reasonable assurance on the adequacy, integrity and effectiveness of the system of internal control, risk management and governance processes. PRINCIPLE C: INTEGRITY IN CORPORATE REPORTING AND MEANINGFUL RELATIONSHIP WITH STAKEHOLDERS Engagement with Shareholders and Stakeholders The Board recognises the importance of transparency and accountability to its shareholders and stakeholders. The shareholders and stakeholders are informed on the performance and major corporate activities through timely dissemination of quarterly financial results, circulars, annual reports, corporate announcements and press releases. The Management also meets the institutional shareholders, analysts and media to clarify information on KUB Group’s performance and strategic direction. The Annual Report provides the shareholders and stakeholders with a comprehensive overview of the financial and non-financial information. Components such as Management Discussion Analysis, Corporate Governance Overview Statement, Sustainability Statement and Statement of Risk Management and Internal Control form integral parts of the non-financial information. Annual General Meeting (‘AGM’) The General Meeting allows the shareholders to engage with the Board. The Board provides the shareholders with adequate time to discuss the resolutions to be tabled at the AGM. The Notice of the AGM is issued twenty-eight (28) days before the AGM as recommended by the Code, instead of twenty-one (21) days under the Companies Act, 2016 and MMLR. The Notice outlines the resolutions to be tabled, accompanied by explanatory notes and background information, where applicable. Under the MMLR, all resolutions will be voted by poll in accordance to the procedures set out in the Constitution. A shareholder may vote through proxies, provided the proxy form is deposited at least forty-eight (48) hours before the AGM. The AGM have always been convened in the Klang Valley at locations accessible by public transport. This Statement is made in accordance with the resolution of the Board of Directors dated on 23 September 2021. 34 KUB MALAYSIA BERHAD