FGV Annual Integrated Report 2019

146 FGV HOLDINGS BERHAD APPLICATION OF THE PRINCIPLES AND PRACTICES OF THE MALAYSIAN CODE ON CORPORATE GOVERNANCE 2017 (MCCG 2017) ADDITIONAL INFORMATION Practice Details Applied/Departure/ Adopted/Not Adopted Page* PRINCIPLE B : EFFECTIVE AUDIT AND RISK MANAGEMENT 8.5 Collectively, the Audit Committee should possess a wide range of necessary skills to discharge its duties. All members should be financially literate and are able to understand matters under the purview of the Audit Committee including the financial reporting process. All members of the Audit Committee should undertake continuous professional development to keep themselves abreast of relevant developments in accounting and auditing standards, practices and rules. Applied 86-89, 93-94 9.1 The board should establish an effective risk management and internal control framework. Applied 117-126 9.2 The board should disclose the features of its risk management and internal control framework, and the adequacy and effectiveness of this framework. Applied 117-126 9.3 (Step up) The board establishes a Risk Management Committee, which comprises a majority of independent directors, to oversee the company’s risk management framework and policies. Adopted 89, 105-108 10.1 The Audit Committee should ensure that the internal audit function is effective and able to function independently. Applied 68, 102-103 10.2 The board should disclose– • whether internal audit personnel are free from any relationships or conflicts of interest, which could impair their objectivity and independence; • the number of resources in the internal audit department; • name and qualification of the person responsible for internal audit; and • whether the internal audit function is carried out in accordance with a recognised framework. Applied 98, 102-103 PRINCIPLE C : INTEGRITY IN CORPORATE REPORTING AND MEANINGFUL RELATIONSHIP WITH STAKEHOLDERS 11.1 The board ensures there is effective, transparent and regular communication with its stakeholders. Applied 2, 3, 6, 11-13, 17-18, 21, 23, 74-81, 113-115 11.2 Large companies are encouraged to adopt integrated reporting based on a globally recognised framework. Applied 2, 3, 116 12.1 Notice for an Annual General Meeting should be given to the shareholders at least 28 days prior to the meeting. Applied 115 12.2 All directors attend General Meetings. The Chair of the Audit, Nominating, Risk Management and other committees provide meaningful response to questions addressed to them. Applied Please refer to Corporate Governance Report 12.3 Listed companies with a large number of shareholders or which have meetings in remote locations should leverage technology to facilitate– • voting including voting in absentia; and • remote shareholders’ participation at General Meetings. Departure – Detailed explanation on the application/departure/adoption of the principles and practices of the MCCG 2017 are explained in our Corporate Governance Report, which is available on our website at www.fgvholdings.com