Annual Report 2012, PDF - Axiata Group Berhad - Investor Relations

Statement onCorporate GovernanceAxiata Group Berhad (Axiata) intends to create long term value,both through its traditional business and innovative adjacencies ofnew businesses and market focused solutions. In pursuing thesecorporate objectives, Axiata is committed to the highest standardof corporate governance and it is the Board’s view that goodgovernance is pivotal in helping the business to deliver its strategieswhilst generating sustainable shareholder value and meeting itsobligations towards shareholders and other stakeholders.Axiata posted stellar results for the financial year ended31 December 2012, exceeding all targets through effectiveexecution of its strategies. Axiata’s share price grew by28% with Total Shareholders’ Return growing at 33%,outperforming the Kuala Lumpur Composite Index for thethird consecutive year. Axiata’s total subscriber basealso expanded to more than 215 million, making Axiataone of the largest telecommunications companies in theregion. All of these are testament to Axiata’s delivery ofits commitment to its shareholders and other stakeholders.The Board is pleased to outline how Axiata has compliedwith the principles and recommendations of the MalaysianCode on Corporate Governance 2012 (MCCG2012)throughout the financial year ended 31 December 2012(FY12). This statement has been made in accordancewith the resolution and authority of the Board dated 20February 2013.THE BOARD OF DIRECTORS• Role and Responsibilities of the BoardThe Board is responsible for the overall governanceand conduct of the Group’s strategic plan, includingits implementation, and is accountable for theperformance of the Company and the Group.In setting the Company’s governance and strategicdirection, the Board takes into account the interestsof all stakeholders in its decision making andendeavours to promote sustainability. In dischargingits duties, the Board is guided by its Charter and theLimits of Authority (LoA) which outlines high levelduties and responsibilities of the Board, matters thatare specifically reserved for the Board and thedelegated day-to-day management of the Companyto the President & Group Chief Executive Officer(GCEO). This formal structure of delegation is furthercascaded by the President & GCEO to the SeniorManagement team within the Company’s CorporateCentre. However, the President & GCEO and theSenior Management team remain accountable to theBoard for the authority that is delegated, and for theperformance of the Company and the Group as theBoard continues to monitor the same. On this aspect,the President & GCEO is required to regularly reporton the progress being made by the business. Opendialogue between individual members of the Boardand the President & GCEO and Senior Managementteam within the Group is encouraged to enable theDirectors to gain better understanding of the Group’sbusiness and the Management’s proposals.72