FY 2011 Annual Report - Sheng Siong
FY 2011 Annual Report - Sheng Siong
FY 2011 Annual Report - Sheng Siong
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INTRODUCTION<br />
<strong>Sheng</strong> <strong>Siong</strong> <strong>Annual</strong> <strong>Report</strong> <strong>2011</strong><br />
Corporate Governance<br />
The Board of Directors (the “Board”) is committed to ensuring that the highest standards of corporate governance are<br />
practised throughout <strong>Sheng</strong> <strong>Siong</strong> Group Ltd. (the “Company”) and its subsidiaries (the “Group”), as a fundamental<br />
part of its responsibilities to protect and enhance shareholder value and the financial performance of the Company.<br />
In this respect, the Company adopts the practices based on the principles and guidelines as set out in the Code of<br />
Corporate Governance 2005 (the “Code”).<br />
This report describes the Group’s corporate governance practices and structures that were in place during the financial<br />
year ended 31 December <strong>2011</strong> (“<strong>FY</strong><strong>2011</strong>”).<br />
(A) BOARD MATTERS<br />
Board’s Conduct of its Affairs<br />
Principle 1: Every company should be headed by an effective Board to lead and control the company. The Board<br />
is collectively responsible for the success of the company. The Board works with Management to achieve this<br />
and the Management remains accountable to the Board.<br />
The Board is primarily responsible for overseeing and supervising the management of the business affairs of<br />
the Group and Board members are expected to act in good faith and exercise independent and objective<br />
judgement in the best interests of the Group.<br />
The functions of the Board include:<br />
(i) providing entrepreneurial leadership, setting the corporate strategy and directions, and ensuring that<br />
the necessary financial and human resources are in place for the Group to achieve its objectives;<br />
(ii) establishing a framework of prudent and effective controls which enable risks to be assessed and<br />
managed;<br />
(iii) reviewing the performance of Management; and<br />
(iv) setting the Group’s values and standards, and ensuring that obligations to shareholders and others are<br />
met.<br />
Matters requiring the Board’s decision and approval include:<br />
(i) the financial plans of the Group;<br />
(ii) major funding proposals, investments, acquisitions and divestments including the Group’s commitment<br />
in terms of capital and other resources; and<br />
(iii) the appointment and the remuneration packages of the Directors and Management.<br />
The Group has in place financial authorisation limits for matters such as operating and capital expenditure,<br />
credit lines and acquisition and disposal of assets and investments, which require the approval of the Board.<br />
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