My EG Services Berhad Annual Report 2019

ANNUAL REPORT 2019 63 INTRODUCTION The Board recognises the importance of corporate governance and is committed to ensure that the principles and best practices in corporate governance as set out in the MCCG are observed and practised throughout the Group so that the affairs of the Group are conducted with integrity and professionalism with the objective of safeguarding shareholders’ investment and ultimately enhancing shareholders’ value. This statement outlines the following principles and recommendations which the Group has comprehended and applied with the best practices outlined in the MCCG:- z Board Leadership and Effectiveness z Effective Audit and Risk Management z Integrity in Corporate Reporting and Meaningful Relationship with Stakeholders This statement is prepared in compliance with MMLR of Bursa Securities and it is meant to be read together with the Corporate Governance Statement and Corporate Governance Report. The Corporate Governance Report provides details on how the Group has applied each practices as set out in the MCCG for the FP2019, a copy of which is available on the Group’s website: www.myeg.com.my/investor_relations (under the “Reports & Persentations” tab) as well as via an announcement on Bursa Securities website. The Board will continue to take measures to improve compliance with the principles and recommended best practices in the ensuing years. PRINCIPAL A: BOARD LEADERSHIP AND EFFECTIVENESS I. BOARD RESPONSIBILITIES The Board has considered and discussed a wide range of matters during the FP2019, including strategic decisions and the reviewing of risk associated matters in the business. The Board is aware that decisions made for the business of the Group would affect a broad range of our stakeholders. While the Board sought to ensure that the decisions were taken in a way that was fair and consistent with the Group’s values, the Board also recognised the importance of balancing these with the need to support the long-term future of the business. In order to ensure orderly and effective discharge of the above functions and responsibilities of the Board, the Board has established various committees where specific powers of the Board are delegated to the relevant Board Committees as depicted below:- BOARD OF DIRECTORS Audit and Risk Management Committee Nomination Committee Remuneration Committee RESPONSIBILITIES RESPONSIBILITIES RESPONSIBILITIES r 0WFSTJHIU PO UIF (SPVQ T financial reporting r 3FWJFX RVBSUFSMZ GJOBODJBM results, unaudited and audited financial statements r .POJUPSJOH PG SJTL NBOBHFNFOU and internal control systems r /PNJOBUJPO PG OFX %JSFDUPST r "OOVBM BTTFTTNFOU PG UIF Board, the Board Committees and the contribution of each individual Director r 3FDPNNFOEJOH UP UIF #PBSE of remuneration of Executive Directors and Non-Executive Directors * The Board had on 27 February 2020 approved the separation of Audit and Risk Management Committee into two (2) committees, namely Audit Committee and Risk Management Committee in line with the recommendation under the Step-up Practice 9.3 of the MCCG. The members of the Audit Committee and Risk Management Committee will carry out their respective role starting 27 February 2020 onwards. CORPORATE GOVERNANCE OVERVIEW GOVERNANCE