Financial Reporting and Ethics - The Institute of Chartered ...

FINANCIAL REPORTING AND ETHICS11.9.8 Reporting and Control(a)It is the duty of the board to present a balanced, reasonable andtransparent assessment of the company’s position;(b)(c)(d)(e)(f)(g)(h)In financial and non-financial reporting, there is an overridingneed to promote transparency;It is the primary responsibility of the board to ensure efficientand effective internal control system;The board should ensure that objective and professionalrelationship is maintained with the external auditors;External auditors should not be involved in business relationshipwith the company;There should be an audit committee of at least three nonexecutivedirectors who have written terms of reference whichdeal clearly with its authority and duties;A report on the effectiveness of the company’s system of internalcontrol should be presented by the directors in the annual report;In compliance with the Companies and Allied Matters Act, thedirectors should report that the business is a going concern orotherwise, with supporting assumptions or qualifications asnecessary, with the written terms of reference.11.9.9 The Role of ShareholdersShareholders’ Rights and Privileges(a)The company, through the directors, should ensure thatshareholders’ statutory and general rights are protected everytime;(b)(c)(d)It should be the responsibility of the shareholders to electdirectors and approve the terms and conditions of theirdirectorship positions;The venue of the annual general meeting should be carefullychosen such that the shareholders could attend and vote and notbe disenfranchised as a result of distance and cost;Before the annual general meeting, notices should be dispatchedat least 21 working days, with such details and annual reports,audited financial statements and other information that wouldenable the shareholders to vote properly on any issue.230