Corporate Governance Analysis
TABLE OF CONTENT
Items | P.No | 1. Introduction: corporate governance | 2 | 2. Introduction: selected companies | 3 | 3. Analysis of the two companies on the practice of corporate governance | 4 | 4. Application of corporate governance (detail review) - Malayan Banking berhad | 7 | 5. Application of corporate governance (detail review) - Public Bank Berhad | 15 | 6. Conclusion | 22 | 7. References | 23 | 8. Appendix: a. The Malaysian Code on Corporate Governance (Code) b. Statement of corporate governance – Malayan Banking Berhad c. Statement of corporate governance – Public Bank Berhad | |
INTRODUCTION: CORPORATE GOVERNANCE
Corporate governance is the process and structure used to direct and manage the business and affairs of the company towards enhancing business prosperity and corporate accountability with the ultimate objective of realizing long term shareholder value, whilst taking account the interests of other stakeholders
The Malaysian Code on Corporate Governance (Code), was first issued in March 2000, and then was later revised in 2007. The Code essentially aims to set out principles and best practices on structures and processes that companies may use in their operations towards achieving the optimal governance framework. These structures and processes exist at a microlevel which includes issues such as the composition of the board, procedures for recruiting new directors, remuneration of directors, the use of board committees, their mandates and their activities.
COMPLIANCE
Listing Requirements of Bursa Malaysia requires all listed companies to state in their annual reports:
• How they have applied the principles set out in Part 1;
• The extent to which they have complied with the best practices set out in Part 2;
• Identify and give reasons for areas of non-compliance; and
• Where applicable, state the alternative practice(s) adopted.
The code also states that the
Items | P.No | 1. Introduction: corporate governance | 2 | 2. Introduction: selected companies | 3 | 3. Analysis of the two companies on the practice of corporate governance | 4 | 4. Application of corporate governance (detail review) - Malayan Banking berhad | 7 | 5. Application of corporate governance (detail review) - Public Bank Berhad | 15 | 6. Conclusion | 22 | 7. References | 23 | 8. Appendix: a. The Malaysian Code on Corporate Governance (Code) b. Statement of corporate governance – Malayan Banking Berhad c. Statement of corporate governance – Public Bank Berhad | |
INTRODUCTION: CORPORATE GOVERNANCE
Corporate governance is the process and structure used to direct and manage the business and affairs of the company towards enhancing business prosperity and corporate accountability with the ultimate objective of realizing long term shareholder value, whilst taking account the interests of other stakeholders
The Malaysian Code on Corporate Governance (Code), was first issued in March 2000, and then was later revised in 2007. The Code essentially aims to set out principles and best practices on structures and processes that companies may use in their operations towards achieving the optimal governance framework. These structures and processes exist at a microlevel which includes issues such as the composition of the board, procedures for recruiting new directors, remuneration of directors, the use of board committees, their mandates and their activities.
COMPLIANCE
Listing Requirements of Bursa Malaysia requires all listed companies to state in their annual reports:
• How they have applied the principles set out in Part 1;
• The extent to which they have complied with the best practices set out in Part 2;
• Identify and give reasons for areas of non-compliance; and
• Where applicable, state the alternative practice(s) adopted.
The code also states that the
References: * Malaysian Code on Corporate Governance (Code), * http://www.pbebank.com * http://www.maybank2u.com.my