Quality - UAC Berhad

Corporate Governance StatementSTRATEGIC PLANNING COMMITTEEThe Strategic Planning Committee advises the Board on the strategic direction of the various businesses within theGroup. The members of the committee are as follows:Dato' (Dr.) Megat Abdul Rahman bin Megat AhmadTan Sri Dato' Lodin bin Wok KamaruddinDatuk Alladin HashimKoo Hock Fee (Appointed on 1 July 2005)Li Heng Tiong @ Lee Heng Tiong (Resigned on 30 June 2005)DIALOGUE BETWEEN COMPANIES AND INVESTORSThe Board acknowledges the need for shareholders to be informed of all material business matters affecting theCompany. Announcements and release of financial results on a quarterly basis provide the shareholders and theinvesting public with an overview of the Group's performance and operations. Summaries of the Group's financialresults are advertised in a major newspaper and copies of the full announcement are supplied on request.THE ANNUAL GENERAL MEETINGThe Annual General Meeting provides a means of communication with shareholders. At each Annual GeneralMeeting, the Board presents the progress and performance of the business, and encourages shareholders to participatein the question and answer session.The Board has identified Datuk Alladin Hashim, a senior independent Director to whom any queries or concernsregarding UAC BERHAD group may be conveyed.FINANCIAL REPORTINGIn presenting the annual financial statements and quarterly announcement of results to shareholders, the Directorsaim to present a balanced and understandable assessment of the Group's position and prospects.INTERNAL CONTROLThe Directors acknowledge the responsibility of maintaining a good system of internal control, including riskassessments, and the need to review its effectiveness regularly in order to safeguard the Group's assets and thereforeshareholders' investments in the Group. This system, by its nature, can only provide reasonable but not absoluteassurance against misstatement or loss. A Risk Management Committee is in place to assist the Board in identifyingand assessing risks and the control measures within the Group. The Group's Statement on Internal Control for the yearended 31 December 2005 is set out on pages 36 to 39 of this annual report.RELATIONSHIP WITH THE AUDITORSThe role of the Audit Committee in relation to the auditors is described on pages 32 to 35.This statement is made in accordance with a resolution by the Board dated 15 February 2006.31