BOARD CHARTER
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Purpose | ||||||
This Board Charter (‘the Charter”) sets out the authority, responsibility, membership and operation of the Board of Directors of SEREMBAN ENGINEERING BERHAD (“the Company”), adopting principles of effective corporate governance and compliance with laws, regulations, rules, directives and guidelines applicable to the Company which include but Is not limited to the Companies Act 2016 and Capital Markets and Services Act, 2007 and any statutory modification amendment or re-enactment thereof for the time being in force (“Applicable Laws”).This Charter further defines the specific responsibilities of the Board, in order to enhance coordination and communication between the Management and the Board and more specifically, to clarify the accountability of both the Board and Management for the benefit of the Company and its shareholders. In addition, it will assist the Board in the assessment of its own performance and of its individual Directors. | |||||||
2. | Authority | ||||||
The Board drives its authority to act from the Constitution of the Company (formally known as Memorandum and Articles of Association) and the law and regulations governing companies in Malaysia. | |||||||
3. | Role Of Board | ||||||
The Board’s role is to:
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4. | Delegation to Board Committees | ||||||
The Board may from time to time establish Committees as it considers necessary or appropriate to assist in carrying out its responsibilities. The Board shall, as a minimum, establish the following Board Committees and shall adopt the respective Terms of Reference (“ToR”) setting out matters relevant to the authority and responsibilities assigned thereto, membership and operation thereof:
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5. | Relationship with management | ||||||
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6. | Matters which are specifically reserved for the Board or Board Committees as may be varied from time to time as determined by the Board, shall include the following. | ||||||
Conduct of the Board·
Remuneration
Operational
Financial
Other Matters
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7. | Structure | ||||||
The Company’s Constitution governs the regulations and proceedings of the Board. The Board, together with the NC, determines the size and composition of the Board subject to the terms of the Company’s Constitution.
Board composition
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8. | Relationship of the Board and Management | ||||||
Access to Management and Information
Members of the Board should be given unrestricted access to the Company’s Management and to the information pertaining to the Company including from the Company’s auditors, company secretaries and consultants. Position of CEO The Board will link the Company’s governance and Management functions through the Chairman with the CEO. All Board’s authority conferred on Management is delegated through the CEO so that the authority and accountability of Management of is considered to be the authority an accountability of the CEO so far as the Board is concerned. Accountability of CEO The CEO is accountable to the Board for the achievement of the Company’s goals and for the observance of the Management’s authorities. The CEO shall be the head of the management of the Company and in that capacity is answerable to the Board. The key roles of the CEO, amongst others, include:
Management Authorities The CEO is expected to act within all specific authorities delegated to him by the Board. The assets of the Company are expected to be adequately maintained and protected, and not unnecessarily placed at risk. |
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9. | Directors’ Remuneration | ||||||
The Board will determine the level of remuneration of the members of the Board, taking into consideration the recommendations of the RC. Executive Directors should not be involved in deciding their own remuneration. Non-executive members of the Board will be paid a basic fee as ordinary remuneration and they will also be paid a sum based on their responsibilities in Board Committees and for their attendances at meetings. The fee and any benefits payable to the Directors which is subject to the approval of the Shareholders, shall be fixed in sum and not by a commission or on percentage of profits/turnover. | |||||||
10. | Board and Members Assessment | ||||||
The Chairman keeps under review, informally, the contributions made by the members of the Board. The NC is given the task to review annually the activities and effectiveness of the Board and the members of the Board. With the assistance of the Company Secretary, the Chairman of the NC oversees the overall evaluation process. The NC is required to the Board’s and Board Committees’ performance annually and report to the Board. This assessment report together with the report on the Board balance (the required mix of skills and experience and other qualities) will be discussed with the full Board. This exercise is carried out after the end of each financial year or such other time as may be deemed appropriate.
As required under the Listing Requirements, the Board shall through NC, review the term of office and performance of the AC and each of its members annually to determine whether the AC and its members have carried out their duties in accordance with its ToR. |
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11. | Review | ||||||
This Charter is to be reviewed by the Board as required and updated in accordance with the needs of the Company and any new regulations that may have an impact on the discharge of the Board’s responsibilities. This Charter is made available for reference on the Company’s corporate website. |
Approved by the Board on 23 November 2018
Updated as at 11 October 2019