PRINCIPAL A: BOARD LEADERSHIP AND EFFECTIVENESS (CONT’D) I. BOARD RESPONSIBILITIES (CONT’D) The Board has established a formal schedule of matters reserved for deliberation to uphold good governance practices are in place for the Group. These matters include: (a) Conflict of interest issues in relation to a substantial shareholder or a Director including approving related party transactions; (b) Material acquisition and disposal of assets not in the ordinary course of business including significant capital expenditures; (c) Strategic investments, mergers and acquisitions, and corporate exercises; (d) Limits of authority; (e) Treasury policies; (f) Risk management policies; (g) Key human resource issues; and (h) Business plans. II. BOARD COMPOSITION The composition of the Board aligns with the requirements of the MCCG and the MMLR of Bursa Securities. Having a majority of Independent Directors ensures the Board’s adherence to governance standards and reinforces its commitment to transparency and accountability. The Board acknowledges the importance of diversity in enabling a range of perspectives to be considered and facilitates the making of informed decisions and the stewardship of MYEG. The Board also recognises the need to evolve strategically as a dynamic Board in accordance with the strategic direction of the Company. Hence, the Board through the Nomination Committee (“NC”), is actively reviewing its composition to strike a balance between independence and diversity to effectively discharge its collective responsibilities and to implement the necessary succession plans. The Board recognises the benefits of having a diverse Board with a mix of age, ethnicity, gender, and cultural and geographical backgrounds. This diverse composition fosters a competitive edge by harnessing a broad spectrum of perspectives, experiences, and expertise necessary to achieve effective stewardship and management. In assessing the suitability of individual Board members, the NC considers several factors such as skills, knowledge, expertise, experience, professionalism and time commitment to effectively discharge his/her roles as a Director, contributions, background, character, integrity and competence. In the case of candidates for the position of Independent Non-Executive Directors, the NC will evaluate the candidates’ ability to discharge their responsibilities and bring in their independent judgement, to provide constructive challenge, strategic guidance, offer specialist advice, and impartiality. The NC also reviews the tenure of each Director, considering factors such as performance and contribution to the Board. Annual re-election of a director is contingent upon a satisfactory evaluation of the Director’s effectiveness and ongoing suitability for the role. The Board evaluates each individual in the context of the Board as a whole. The ultimate objective is to recommend a team which can best perpetuate the success of the Group’s businesses and safeguarding shareholders’ interests through the exercise of sound judgement. While the Board does not enforce specific targets for the appointment of female candidates, it acknowledges the importance of gender diversity. During the year, the total number of female Directors is two (2) representing an approximately 30% of women representation on the Board. The Board believes that its current composition possesses necessary knowledge, experience, diverse range of skills, and competence to discharge their duties and responsibilities effectively. Moving forward, the Board, being in line with the national target of having 30% female representation on boards of listed issuers, will maintain a register of potential directors which includes high-calibre female candidates to be appointed when the need arises. The Non-Executive Directors are free from management obligations and any relationships that could compromise with their independent judgement. This provides an effective check and balance in the functioning of the Board where all matters are reviewed with impartiality and fairness, to safeguard the Company’s interests. CORPORATE GOVERNANCE OVERVIEW (cont’d) 128 MY E.G. SERVICES BERHAD Registration No. 200001003034 (505639-K) PRINCIPAL A BOARD LEADERSHIP AND EFFECTIVENESS
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