FGV Annual Report 2016

FELDA GLOBAL VENTURES HOLDINGS BERHAD 92 Dear Shareholders, Over the last year we have been taking steps to strengthen Felda Global Ventures Holdings Berhad (FGV or the Company) and its Group of Companies (FGV Group or the Group). Changes to our governance structure have been part of these actions. As I wrote to you last year, we have changed our corporate structures to optimise efficiencies and enhanced internal processes and policies. We have seen important developments following these steps, whilst continuously building on them. GOOD FUNCTIONING OF THE BOARD AND CORPORATE GOVERNANCE The Board of Directors (the Board) remains vigilant in ensuring the Group's high regard for corporate governance, which is visible in how the Group operates within principles of corporate discipline, ethical leadership, transparency, integrity and accountability. FGV's continued delivery rests in the Board's recognition of the link between effective governance and sustainable business performance. The Board recognises its pivotal role in providing ethical leadership and setting a tone of integrity in the Group. The Board confirms once again that it applies in all material respects the principles embodied in the Malaysian Code on Corporate Governance 2012 (MCCG 2012), the Main Market Listing Requirements (Listing Requirements) of Bursa Malaysia Securities Berhad (Bursa Securities), the Companies Act and other pertinent legislation by which it is bound. We continue to strive to embed best practice corporate governance principles whilst building a lasting legacy for future generations and creating long term value for our Stakeholders. For the year under review, an assessment of the Board's performance as well as that of the various Board Committees against the respective mandates was conducted. This process presented an opportunity to reflect on areas that should receive increased focus, and to look at the year ahead with increased vigour. HOW WE ARE GOVERNED CHAIRMAN'S STATEMENT ON CORPORATE GOVERNANCE TAN SRI HAJI MOHD ISA DATO' HAJI ABDUL SAMAD CHAIRMAN We regularly review and benchmark the Group's governance structures and processes to ensure they support effective and ethical leadership, good corporate citizenship and sustainable development and ensure that they are applied in the best interests of the Group and our Stakeholders.