FGV Annual Report 2015

136 Felda Global Ventures Holdings Berhad Annual Integrated Report 2015 Statement on Corporate Governance Up until August 2015, all reports were investigated by the Group’s Internal Audit function with the conclusions of the investigations and status of cases reported and investigated presented to the Audit Committee and Board Governance & Risk Management Committee on a quarterly basis. Subsequently from 1 September 2015 onwards, the investigation role has been centralised at the Group Human Resources Division. In line with this change, from 1 September 2015 onwards, conclusions and status of cases reported and investigated are presented to the Board Governance and Risk Management Committee on a quarterly basis. Related Party Transactions and Recurrent Related Party Transactions Mechanism The Company has in place a Related Party Transactions and Recurrent Related Party Transactions Policy which is continuously reviewed. 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’ mandate at the previous AGM in 2015 for Recurrent Related Party Transactions of a revenue or trading nature from the AGM date until the next AGM in June 2016. At the forthcoming AGM, the Company will seek Shareholders’ mandate for Recurrent Related Party Transactions of a revenue or trading nature for the next year. 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 AIR. Relationship with External Auditors The Group’s transparent and professional relationship with the external auditors is primarily maintained through the Audit Committee. 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 Integrated Report on pages 110 to 118. The terms of engagement of the Group’s external auditors are reviewed by the Audit Committee prior to submission to the Board for approval. 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. The Group has formulated an External Auditor Policy, which details out the selection criteria, assessment and management of independence of relationship with the External Auditors. Details on the External Auditor Policy is provided on pages 116 and 117 of this Annual Integrated Report. The fees paid/payable to the external auditor, Messrs. PwC, in financial year 2015 were as follows: Fees paid/payable to Messrs. PricewaterhouseCoopers (PwC) in 2015 RM’ 000 Audit Fees • PwC Malaysia • Member firms of PwC International Limited (PwCIL) 3,626 767 Audit Related Fees • PwC Malaysia and member firms of PwCIL 1,293 Other non-audit fees paid to PwC Malaysia and member firms of PwCIL 1,936 Total 7,622 Corporate Integrity Since the signing of the Malaysian Corporate Integrity Pledge on 9 April 2012, FGV remains committed to uphold the integrity principles and strive towards creating a business environment that is free from corruption in the conduct of its business and in its interactions with its business partners and the authorities. FGV is committed to a culture of integrity. The CoEC and CoBP set out the principles of business ethics and the ethical business practices to be observed, adopted and embedded in all operations and businesses of FGV and its Group of Companies. This is to ensure that FGV Group conducts its businesses globally in compliance with laws and ethical values. FGV Group commits to: (i) Adopt an open and honest attitude in all aspects; (ii) Perform to our best ability at global standards, whilst continuously improving the quality of our products and services; (iii) Deliver products and services to customers as pledged; (iv) Take pride in contributing towards FGV’s success; and (v) Uphold FGV’s core values PRIDE (Partnership, Respect, Integrity, Dynamism and Enthusiasm).