3 March, 2020
On 5 February 2020, the SC announced the release of the Checklist which was developed as part of a collaborative effort between the SC, the Institutional Investors Council Malaysia and the Minority Shareholders Watch Group. The Checklist is intended to promote meaningful dialogue between shareholders and the board of directors at annual general meetings (“AGMs”).
The Checklist highlights questions for shareholders to consider in preparation for an AGM. Shareholders play an important role in driving responsible corporate behaviour and theAGM is one of the platforms where they can raise material issues for discussion or seek explanation from the board and management.
The Checklist covers primarily issues related to resolutions commonly tabled at AGMs such as the appointment or reappointment of directors, approval of directors’ fees and the appointment of auditors.
General meetings are important platforms for directors and senior management to engage shareholders to facilitate greater understanding of the company’s business, governance and performance. Thus, the Intended Outcome of Practice 12 of the Malaysian Code on Corporate Governance is that shareholders are able to participate, engage the board and senior management effectively and make informed voting decisions at general meetings.
While the Checklist was developed for shareholders, other stakeholders such as consumers and potential investors are encouraged to use the Checklist to understand and evaluate the performance, policies and practices of companies.
The Checklist can be downloaded here:
https://www.sc.com.my/api/documentms/download.ashx?id=b59a0f5d-c414-4c27-b1c2- 37ad15072d47.
For further information, please contact:
Putri Noor Shariza Noordin, Partner, Shearn Delamore & Co
shariza@shearndelamore.com
