FY 2011 Annual Report - Sheng Siong

INTRODUCTION
Sheng Siong Annual Report 2011
Corporate Governance
The Board of Directors (the “Board”) is committed to ensuring that the highest standards of corporate governance are
practised throughout Sheng Siong Group Ltd. (the “Company”) and its subsidiaries (the “Group”), as a fundamental
part of its responsibilities to protect and enhance shareholder value and the financial performance of the Company.
In this respect, the Company adopts the practices based on the principles and guidelines as set out in the Code of
Corporate Governance 2005 (the “Code”).
This report describes the Group’s corporate governance practices and structures that were in place during the financial
year ended 31 December 2011 (“FY2011”).
(A) BOARD MATTERS
Board’s Conduct of its Affairs
Principle 1: Every company should be headed by an effective Board to lead and control the company. The Board
is collectively responsible for the success of the company. The Board works with Management to achieve this
and the Management remains accountable to the Board.
The Board is primarily responsible for overseeing and supervising the management of the business affairs of
the Group and Board members are expected to act in good faith and exercise independent and objective
judgement in the best interests of the Group.
The functions of the Board include:
(i) providing entrepreneurial leadership, setting the corporate strategy and directions, and ensuring that
the necessary financial and human resources are in place for the Group to achieve its objectives;
(ii) establishing a framework of prudent and effective controls which enable risks to be assessed and
managed;
(iii) reviewing the performance of Management; and
(iv) setting the Group’s values and standards, and ensuring that obligations to shareholders and others are
met.
Matters requiring the Board’s decision and approval include:
(i) the financial plans of the Group;
(ii) major funding proposals, investments, acquisitions and divestments including the Group’s commitment
in terms of capital and other resources; and
(iii) the appointment and the remuneration packages of the Directors and Management.
The Group has in place financial authorisation limits for matters such as operating and capital expenditure,
credit lines and acquisition and disposal of assets and investments, which require the approval of the Board.
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