Serba Dinamik Annual Report 2016

2016 Annual Report 079 CORPORATE GOVERNANCE STATEMENT (Cont’d) 2. BOARD OF DIRECTORS (CONT’D) c) Board Duties and Responsibilities The principal responsibilities of the Board are as follows: • Reviewing and adopting a strategic plan The role of the Board is to review, challenge and approved management’s proposal on a strategic plan of the Group, which include overall corporate strategy, marketing plan, human resources plan, information technology plan, financial plan, budget, regulations plan and risk management plan. • Overseeing the conduct of the business A basis function of the Board is to oversee conduct of the business and performance of management in order to determine whether the business is being properly managed. • Identifying principal risks and ensuring the implementation of appropriate internal controls and mitigation measures The Board must understand the principal risks of all aspects of the Group’s business and ensure that there are systems in place which effectively monitor and manage these risks. • Succession Planning The Board should ensure that all candidates appointed to senior management positions are sufficient caliber and shall be responsible on appointing, training, fixing the remuneration of, and where appropriate, replacing key management; • Overseeing the development & implementation of a shareholder communications policy The responsibility of the Board is to ensure that the Group has in place a policy to enable effective communication with its shareholders and other stakeholders. • Reviewing adequacy and integrity of the management information and internal controls system The Board has to ensure that there is a sound framework of reporting on internal controls and regulatory compliance. d) Board Charter The Board Charter sets out the roles, responsibilities and functions of the Board in accordance with the standards, practices and principles of good corporate governance stated in the policy documents and guidelines issued by MCCG 2012, MMLR and relevant regulatory authorities. The Board Charter is available on its corporate website.