MKH Annual Report 2020

51 MKH BERHAD PRINCIPLE A: BOARD LEADERSHIP AND EFFECTIVENESS (CONT’D) II. BOARD COMPOSITION (CONT’D) 1. Independence The Board supports the highest standards of corporate governance and the development of best practices for the Company. The concept of independence adopted by the Board is in line with the definition of an Independent Director under Paragraph 1.01 and Practice Note 13 of the MMLR of Bursa Securities, i.e. independent from management and are free from any business or other relationships that could materially interfere with the exercise of their independent judgement. Independent Non- Executive Directors are required to voice their reservations of any Board decisions in areas such as policies and strategies which could be detrimental to the interest of the minority shareholders. 2. Tenure of Independent Directors The Board is mindful of the recommendation of the Code that the tenure of an Independent Director should not exceed a cumulative termof nine (9) years. Upon completion of nine (9) years, an Independent Director may continue to serve on the Board subject to being re-designated as a Non-Independent Non-Executive Director. However, the Company does not have term limits for its Independent Directors as the Board believes that continued contribution provides benefits to the Board and the Company as a whole. The length of service on the Board does not in any way interfere the exercising of independent judgement, expressing views and in participating in deliberations and decision making of the Board and Board Committees. There are four (4) Independent Non-Executive Directors on the Board presently. As at this date, two (2) Independent Directors, namely En. Jeffrey bin Bosra and Haji Mohammed Chudi bin Haji Ghazali, both have served on the Board for cumulative terms of more than twelve (12) years respectively. The Board upon the recommendation of the Nomination Committee has approved and intends to seek a two-tier shareholder’s approval at the forthcoming AGM to retain En. Jeffrey bin Bosra as Independent Non-Executive Director of the Company, who has served on the Board for a cumulative term of more than twelve (12) years to be retained as an Independent Director. Haji Mohammed Chudi bin Haji Ghazali has expressed his intention to retire and will not seek retention or continuing in office as Independent Non-Executive Director at the 41st AGM and will retain office until the conclusion of the 41st AGM. 3. Board Diversity The Board comprised of members who are specialised in the property development and construction sector, banking sector, plantation/agriculture sector, professional in accounting sector and human resource sector. This wide spectrumof competencies, capabilities, skills and relevant business experience provide the Board with a diverse set of expertise and knowledge in discharging its responsibilities for the proper functioning of the Board and ensure that the Group continues to be competitive within its diverse industry segment. Corporate Governance Overview Statement