MKH Berhad 55 Corporate Governance Overview Statement Tenure of Independent Directors There are three (3) Independent Non-Executive Directors on the Board presently and the Board recognises the importance of independence and objectivity in the decision-making process. The Board is mindful of the recommendation of the Code that the tenure of an independent director should not exceed a cumulative term of nine (9) years and if the Board continues to retain the independent director after the ninth year, a two-tier voting process should be applied. In addition, the enhanced MMLR limits the tenure of an independent director to not more than a cumulative tenure of twelve (12) years. For the financial year ended 30 September 2022, En. Jeffrey bin Bosra who has served for a cumulative term of more than twelve (12) years as an Independent Non-Executive Director was re-designated as a Non-Independent Non-Executive Director effective from 9 March 2022. Consequently, En. Jeffrey bin Bosra retired from the Nomination Committee, Remuneration Committee and his role as the Senior Independent Non-Executive Director was assumed by Datuk Mohammad bin Maidon. As at the date of this CG Overview Statement, one (1) of the Independent Director, namely Datuk Mohammad bin Maidon has served on the Board for a cumulative term of more than eight (8) years and on 27 February 2023, it will be his ninth (9) year with the Board. Datuk Mohammad bin Maidon has expressed his intention to retire and will not seek re-election at the forthcoming AGM. This in line with the recommendation of the Code that the tenure of an independent director should not exceed a cumulative term of nine (9) years to foster the level of independence of independent director. In compliance with the amendment to the Bursa Securities MMLR on the enhancement of the definition of Independent Directors, the cooling-off period for the appointment of Independent Directors has been revised from two (2) to three (3) years for an officer, non-independent non-executive director, adviser or transacting party of MKH or its related corporation. 2. Board Diversity The Board comprised of members who are specialised in the property development and construction sector, plantation/agriculture sector, professional in accounting sector, professional in legal sector and human resource sector. These wide spectrum of 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. 3. PRINCIPLE A: BOARD LEADERSHIP AND EFFECTIVENESS (CONT’D) BOARD COMPOSITION (CONT’D) II.
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