FGV Annual Report 2014

Dedicated channels of reporting have been set-up as secure mechanisms to report any concerns as follows: 1. Hotlines administered directly by the Head of Investigation from the Group’s Internal Audit function through: a. Email to alert@feldaglobal.com b. Posting through e-Alert form on the Group’s portal. c. Call to the following hotline number: Country Hotline Number Indonesia 001 803 60 1940 USA 1 855 503 0531 Thailand 1 800 060 162 Canada 1 855 526 8551 Malaysia 1 800-888-717 2. In writing or via email to specific Key Management identified in the Whistleblowing Policy. All reports or complaints received are treated with strict confidentiality and the reporting individual shall not be at risk of victimisation or retaliation for reporting in good faith. All reports are investigated by the Group’s internal audit function. Updates and the conclusions of the investigations are provided to the Audit Committee and Board Governance and Risk Management Committee on a quarterly basis. Related Party Transactions and Recurrent Related Party Transactions Mechanism The Company had established its Related Party Transactions and Recurrent Related Party Transactions Policy on 7 December 2012. The Company has continuously reviewed the Policy, and the latest version was approved by the Board on 25 August 2014. The objectives of this Policy are as follows: 1. To set out the framework for the identification, monitoring, evaluation, reporting and approval of Related Party Transactions and Recurrent Related Party Transactions of FGV Group. 2. To put in place the guidelines and processes to ensure that Related Party Transactions and Recurrent Related Party Transactions are undertaken on terms not more favourable to the Related Parties than generally available to the public, and are not detrimental to the minority shareholders and in the best interest of FGV Group. The Company had sought its shareholders’ ratification and mandate at the previous AGM in 2014 for Recurrent Related Party Transactions of a revenue or trading nature. At the forthcoming AGM, the Company will seek shareholders’ mandate for Recurrent Related Party Transactions of a revenue or trading nature. The details of the Recurrent Related Party Transactions requiring shareholders’ mandate are provided in the Circular to Shareholders which will be sent together with the Annual Report. Relationship with External Auditors The Group’s transparent and professional relationship with the external auditors is primarily maintained through the Audit Committee and the Board. The key features underlying the Audit Committee’s relationship with the external auditors are detailed in the Report on the Audit Committee of this Annual Report on pages 139 to 148. The Audit Committee works closely with the Group’s Management in assessing the suitability and independence of the external auditors and has obtained confirmation from the external auditors that they are, and have been, independent throughout the conduct of the audit engagement with the Group in accordance with the independence criteria set out by the Malaysian Institute of Accountants. The terms of engagement of the Group’s external auditors are reviewed by the Audit Committee prior to submission to the Board for approval. Felda Global Ventures Holdings Berhad pg 136 STATEMENT ON CORPORATE GOVERNANCE