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Frontken Corporation Berhad (651020-T)
ANNUAL REPORT
2016
Principle 2 – Strengthen composition (cont’d)
2.3 The Board should establish formal and transparent remuneration policies and procedures to attract and retain directors (cont’d)
The aggregate remuneration of the Directors of the Group and the Company for the financial year ended 31 December
2016 is as follows:-
Executive Directors
Non-Executive Directors
The Group
RM’000
The Company
RM’000
The Group
RM’000
The Company
RM’000
Salaries
2,905
70
-
-
Fees
48
12
137
137
Bonuses
2,116
754
-
-
Other emoluments
241
159
-
-
5,310
995
137
137
The number of Directors whose remuneration falls within the respective bands is as follows:
Executive Directors
Non-Executive Directors
The Group The Company
The Group The Company
Below RM50,000
-
1
2
2
RM50,001 to RM100,000
-
-
1
1
RM950,000 to RM1,000,000
-
1
-
-
RM1,650,001 to RM1,700,000
1
-
-
-
RM3,650,001 to RM3,700,000
1
-
-
-
2
2
3
3
Principle 3 – Reinforce independence
3.1 The Board should undertake an assessment of its Independent Non-Executive Directors annually
On an annual basis, the Board through the Nomination Committee assesses the Independent Non-Executive Directors,
adopting the criteria as set out in the Main Market Listing Requirements of Bursa Malaysia Securities Berhad and
reports to the Board the outcome of its findings.
3.2 & 3.3 Tenure of Independent Non-Executive Director exceeding cumulative term of nine (9) years and seek shareholders’ approval in
retaining such Independent Non-Executive Director
At the date of this Statement, the Board has a Director, namely Dato’ Haji Johar bin Murat @ Murad, who has served for
more than nine (9) years as an Independent Non-Executive Director.
The Board has assessed, via the Nomination Committee, his independence and, accordingly, recommended him for
shareholders’ approval to continue to serve as an Independent Non-Executive Director of the Company for the ensuing
year based on the following justifications:-
a. He fulfils the criteria under the definition of Independent Non-Executive Director as stated in the Main Market
Listing Requirements of Bursa Malaysia Securities Berhad and, thus, he is able to provide a check and balance by
bringing an element of objectivity and independent judgement to the Board’s deliberation;
b. He brings with him vast experience and expertise to complement the competencies of the other Directors to
enhance boardroom discussions and decision;
c. He has been with the Company for more than nine (9) years since 2006 and, accordingly, is familiar with the
nuances and understanding of the Group’s business operations; and
d. He has exercised due care and diligence during his tenure as an Independent Non-Executive Director of the
Company and carried out his duties professionally and objectively in the interest of the Company and shareholders.
Corporate Governance
Statement
(cont’d)