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Frontken Corporation Berhad (651020-T)
ANNUAL REPORT
2016
Corporate Governance
Statement
(cont’d)
Principle 1 – Establish clear roles and responsibilities (cont’d)
1.2 Board should establish clear roles and responsibilities in discharging its fiduciary and leadership functions (cont’d)
Succession planning
The Board views succession planning as important for business continuity. Key positions which are vacated due to
retirement and/or resignation are filled quickly to avoid business interruption. The issue of succession planning is
deliberated at Board meetings such that pertinent actions are taken to provide for the orderly succession of senior
management.
Overseeing the development and implementation of a shareholder communications policy for the Company
The Company has, on its interactive website, a dedicated Investor Relations section where shareholders can
communicate with the Board through the designated Investor Relations officer. The Board has also identified a Senior
Independent Director, namely Mr Aaron Sim Kwee Lein to whom the concerns of stakeholders and shareholders
pertaining to the Company may be conveyed.
Reviewing the adequacy and integrity of the management information and internal controls system of the Company
The Board acknowledges the importance of the adequacy and integrity of the management information and internal
control systems of the Company. Details of the Group’s internal control system, including how the Board reviews its
adequacy and operating effectiveness, are set out in the Statement on Risk Management and Internal Control in this
Annual Report.
1.3 The Board should formalise ethical standards through a code of conduct and ensure its compliance
The Company has in place a Code of Conduct for its Directors and employees and it is available on the Company’s
website.
The Board also has formalised in writing its Whistle Blowing Policies and Procedures, including reporting templates,
for employees to raise genuine concerns, without fear of reprisal, about possible improprieties on matters pertaining to
financial reporting, compliance, malpractices and unethical business conduct within the Group. The Whistle Blowing
Policies and Procedures document has been uploaded on the Company’s website at
www.frontken.com.
1.4 The Board should ensure that the Company’s strategies promote sustainability
The Board considers sustainability in its business operations. As such, it recognises the need for the Company to
address sustainability in its business strategy, taking into consideration the governance, social and environmental
aspects. In view of the forthcoming mandatory Sustainability Reporting required of listed issuers, the Board has,
on 23 February 2017, deliberated on the need to formalise in writing a Corporate Sustainability Policy covering the
environmental, social and economic aspects of the Group’s operations, and has entrusted this role to an Executive
Director to helm. Nonetheless, the Corporate Sustainability Statement in this Annual Report provides details on how
sustainability initiatives have been taken by the Board and Management for the financial year under review.
1.5 The Board should have procedures to allow its members access to information and advice
The Board Charter provides a procedure for Directors to access information and independent advice in the discharge
of their stewardship role, for example Directors may seek independent legal, financial or other advice as they consider
necessary at the expense of the Company as a full Board or in their individual capacity, in the furtherance of their duties.
Management is required to supply the Board and Committees with information in a form, timeframe and quality that
enables the Directors to effectively discharge their duties. The Directors are provided with Board papers prior to each
meeting to evaluate the proposals and, if necessary, to request for additional information.