Eng - IOI Group

Corporate GovernanceINTRODUCTIONThe Board of Directors of the Company recognises the paramount importance of good corporate governance to the success of the Group.It strives to ensure that a high standard of corporate governance is being practised throughout the Group in ensuring continuous andsustainable growth for the interests of all its stakeholders.The Group’s corporate governance practices are guided by its “Vision IOI” framework whereby responsible and balanced commercialsuccess is to be achieved by addressing the interests of all stakeholders. A set of core values and guiding principles guides our people atall levels in the conduct and management of the business and affairs of the Group. We believe that good corporate governance resultsin quantifiable and sustainable long term success and creation of shareholders’ value as well as benefits for all other stakeholders, all ofwhich are reflected by our performance track record over the years.We are pleased to report that IOI was named the Best Large-Cap Corporate of the Year 2006 in the Asiamoney’s Best ManagedCompanies Award 2006 whereby it has maintained its status since 2004 for its sound management and good corporate vision, wasawarded Asia Pacific’s Best Brand in the plantation category in the recent Brand Laureate 2006-2007 and also voted among the top 10companies in Malaysia under The Wall Street Journal Asia’s 200 most admired companies in 2006. Besides that, IOI has once againwon the Finance Asia’s annual Regional Best Managed Companies Award, for four (4) consecutive years and also secured third placingunder the categories of “Most Committed to Corporate Governance” and has been recognised for being most committed to consistentgood dividends (ninth placing) and with best investor relations (eighth placing). In addition, IOI has also been named as one of the bestcompanies in Malaysia in terms of Corporate Governance in The Asset Magazines’ Annual Corporate Governance Ranking 2007.In relation to the principles and recommendations of the Malaysian Code on Corporate Governance (“the Code”), the Board is pleasedto provide the following statement, which outlines how the Group has applied the principles laid down in the Code. Except for mattersspecifically identified, the Board of Directors has complied with the best practices set out in the Code.THE BOARD OF DIRECTORSRoles and Principal DutiesThe Board takes full responsibility for the overall performance of the Company and of the Group.The Board establishes the vision and strategic objectives of the Group, directing policies, strategic action plans and stewardship ofthe Group’s resources towards realising “Vision IOI”. It focuses mainly on strategies, financial performance, critical and materialbusiness issues and specific areas such as principal risks and their management, internal control system, succession planning for seniormanagement, investor relations programme and shareholders’ communication policy.The executive directors take on primary responsibility for managing the Group’s business and resources. Their intimate knowledge of thebusiness and their “hands-on” management practices have enabled the Group to have leadership positions in its chosen industries.71ANNUAL REPORT 2007IOI Corporation Berhad