Corporate Governance | Integrated Reporting
As our clients face increasing demands for compliance with regulations, we also review clients’ practices to ensure that they comply with the applicable codes of corporate governance as well as provide recommendations for improvement.
Axcelasia’s services in governance and compliance include:
(a) assessing corporate governance processes;
(b) assessing organisations’ board effectiveness, training and remuneration reviews;
(c) preparation of integrated reporting; and
(d) development of sustainability report / statement.
Malaysia Code of Corporate Governance Gap Assessment
In April 2017, the Securities Commission release the new Malaysia Code on Corporate Governance (“MCCG”) which aims to strengthen corporate culture anchored on accountability and transparency.
The new MCCG which consists of 3 principles and 16 practices (12 Practices and 4 Step Ups) are expected to be adopted by PLC to achieve the intended outcomes. The requirements shall be disclosed on an “apply or explain an alternative” basis.
At Axcelasia, we assist clients in conducting a gap analysis using a Balance Scorecard approach to assess the compliance status. Recommendations are also provided to close the gaps identified and ensure that the corporate governance requirements are complied with on a continuous basis.
Board Governance Review
Alongside with the existing rules and regulations the new MCCG also places greater responsibilities on the Board members to ensure greater vigilance and professional scepticism are exercised to ensure the shareholders’ value are protected and maximised.
The Board is required to undertake a formal and objective annual evaluation to determine the effectiveness of the Board, its committees and each individual director.
For large companies, the Board is required to engage independent experts periodically to facilitate objective and candid board evaluations.
Axcelasia’s Board Governance Review includes, amongst others, assessment on the conduct of Board meetings, provide board governance training and carry out remuneration review, to ensure Board effectiveness and leadership qualities to govern and set the strategic direction of the company.
As part of MCCG’s Principle C: Integrity In Corporate Reporting And Meaningful Relationship with Stakeholder, large companies are encourage to adopt integrated reporting based on globally recognised framework and ensure effective, transparent and regular communication with its stakeholders.
As defined by the International Integrated Reporting Council (“IIRC”), an integrated report is a concise communicate about how an organisation’s strategy, governance, performance and prospects, in the context of its external environment, lead to the creation of value in the short, medium and long term.
ACSB professionals help clients in achieving their integrated reporting framework. We help:-
- Provide awareness on integrated reporting;
- Help clients in identify strategies and develop integrated thinking in achieving the integrated reporting framework standards;
- Establishing sustainability framework and help clients in its implementation;
- Transform clients’ integrated reporting frameworks and practices; and
- Assistance in preparing integrated reporting.
Sustainability is defined as “Developments that meets the needs of the present without compromising the ability of future generations to meet their own needs”.
Given the shift in business focus on generating long term benefits and business continuity, business impacts on economy, environment and society are increasingly put under the spotlight.
In response, Bursa Malaysia expanded the listing requirement for corporate social responsibility to require all listed entities to provide narrative statement of the management of material economic, environment and social (EES) risks and opportunities and a detailed disclosure on the sustainability governance structure, scope of the Sustainability Statement and management of material sustainability matters. Listed issuers required to establish its sustainability themes and indicators.
For FYE 2018 onwards, all Main Market listed entities (irrespective of market capitalisation) are required to prepare the Detailed Sustainability Statement, whereas, all ACE Market listed entities are required to only prepare the General Sustainability Statement.
We help clients in realising key benefits from integrating sustainability into business through:-
Creating awareness on sustainability;
Help clients in identifying risks and opportunities relevant to sustainability;
Assistance in preparing sustainability statements;
Establishing sustainability framework and help clients in its implementation; and
Transform clients’ sustainability practices.