19
HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2014
CORPORATE
GOVERNANCE
The directors were appointed based on their experience, stature and potential to contribute to the
proper guidance of the Group and its businesses. As such, we believe that each individual director’s
contributions can be reflected in ways other than the reporting of attendances at Board meetings
and/or Board committee meetings.
1.4 Matters Requiring Board Approval
The directors have identified a few areas for which the Board has direct responsibility for decision
making such as the following:
•
approval of the quarterly results announcements;
•
approval of the annual report and accounts;
•
declaration of interim dividends and proposal of final dividends;
•
convening of shareholders’ meetings;
•
approval of corporate strategy;
•
authorisation of major transactions;
•
approval of Board changes and appointments on Board committees;
•
increase in investment in businesses and subsidiaries;
•
divestment in any of the Group companies; and
•
commitments to term loans and lines of credit from banks and financial institutions by the
Company.
While matters relating in particular to the Company’s objectives, strategies and policies require
the Board’s direction and approval, management is responsible for the day-to-day operation and
administration of the Company in accordance with the objectives, strategies and policies set by the
Board.
1.5 Training of Directors
Our directors are provided with extensive background information about our Group’s history, mission,
values and business operations. Changes to regulations and accounting standards are monitored
closely by management. To keep pace with such regulatory changes, the Company provides
opportunities for ongoing education on Board processes and best practices as well as updates on
relevant new laws and regulations. Directors also have the opportunity to visit the Group’s operational
facilities and meet with management to gain a better understanding of the business operations. The
Company has set up a more formal procedure for the issue of the appointment letter setting out the
directors’ duties and obligations. Newly appointed directors shall also be briefed on the business
and organisational structure of the Group and its strategic directions. The Company encourages
directors to attend training courses organized by the Singapore Institute of Directors or other
training institutions in connection with their duties. The directors are also provided with updates on
the relevant new laws and regulations related to the Group’s operating environment through e-mails
and regular briefings.
