Careers  | Contact  | Key Product Journal
     
     
 
BOARD CHARTER
 
Investor Relations | Corporate Governance | Board Charter
 

   
     
 
 
 
   
 
To view these documents you need to use a PDF file viewer such as Acrobat Reader from Adobe Systems Incorporated.  
7.0  BOARD COMMITTEES  
The Board may delegate their powers and duties to the following Board committees which shall operate within defined terms of reference:-  
   
7.1  Audit Committee  
Audit Committee assists the board in fulfilling its oversight responsibilities by reviewing the financial information provided to the board, shareholders and general public, the system of internal control and audit process.  
   
Terms of reference  
   
Composition  
   

The Audit Committee shall be appointed by the Board of Directors from amongst their number and shall compose of not fewer than three (3) members. All members must be non-executive directors, with a majority of them being independent directors.

 
   
At least one member of the Audit Committee:-  
   
  1. must be a member of the Malaysian Institute of Accountants (MIA); or
  2. if he is not a member of the MIA, he must have at least 3 years' working experience and:-
    • have passed the examinations specified in Part 1 of the 1st Schedule of the Accountants Act, 1967; or
    • must be a member of one of the associations of accountants specified in Part II of the 1st Schedule of the Accountants Act 1967; or
  3. fulfils such other requirements as prescribed or approved by the Exchange.

The Chairman of the Audit Committee shall be an Independent Non-Executive Director.

In the event of any vacancy in the Audit Committee resulting in the non-compliance with Paragraph 15.09(1) of the Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”), the Board shall appoint a new member within three (3) months.

The Board of Directors shall review the term of office and the performance of the Audit Committee and each of its members at least once in every three (3) years.

No alternate Director shall be appointed as a member of the Audit Committee.

Meetings and reporting procedures
The Audit Committee shall meet at least four (4) times a year and the quorum shall be at least three (3) persons with majority being Independent Directors.

The Audit Committee may invite other board members, senior management to attend meetings, including the presence of external auditors, where deemed necessary.

The Audit Committee shall meet with the external auditors without presence of executive Board members at least once a year. Upon the request of the external auditor, the Chairman of the Audit Committee shall convene a meeting of the committee to consider any matter the external auditors may bring to the attention of the Directors or shareholders.

The Company Secretary shall act as secretary of the Audit Committee and shall keep the minutes of each Audit Committee meeting.

 
   
Authority  
   
The Committee is authorised by the Board to:-  
  1. have authority to investigate any matter within its terms of reference;
  2. have the resources and unrestricted access to information which are required to perform its duties;
  3. have direct communication with the external auditors, internal auditors and senior management;
  4. be able to obtain legal and external independent professional or other advices;
  5. be able to convene meetings with the external auditors, internal auditors or both, excluding the attendance of other directors or employees, whenever deemed necessary.
 
   
Duties and functions  
  1. Review the quarterly results and year-end financial statements of the Company, focusing particularly on:
    • any changes in the accounting policies and practices;
    • significant adjustments arising from the audit;
    • the going concern assumption; and
    • compliance with accounting standards and other legal requirements;
  2. Review with external auditors before the audit commences, the audit scope and planning, including any changes to the planned scope of audit;
  3. Review the adequacy of the scope, functions, competency and resources of the internal audit function, and that it has the necessary authority to carry out its work;
  4. Review the external and internal audit reports, major audit findings and management response and ensure that appropriate remedial action is taken by management on the audit findings and recommendations;
  5. Review the assistance given by the Company¡¯s officers to the auditors and any issues, difficulties and reservations arising in the course of audit, or any matters the auditors may wish to report or communicate;
  6. Review the independence and objectivity of the external auditors and their services rendered, including non-audit services and professional fees;
  7. Review the appointment and assess the performance of external auditors and internal auditors, the audit fees and any questions of resignation or dismissal;
  8. To review and discuss with management, the external auditor and internal auditor the adequacy, effectiveness of or weaknesses of the Company¡¯s internal control system, significant findings and recommendations of the auditors, management responses and implementation of corrective actions;
  9. Review and evaluate the effectiveness of the Company¡¯s process for assessing significant risks or exposures and the steps management has taken to minimise such risks.
  10. To direct and where appropriate, supervise any specific projects or internal investigation and review with management the investigation report;
  11. Review any related party transactions and conflict of interest situation that may arise within the Company or the Group; and
  12. Review any other activities as defined and authorised by the Board.
 
   
7.2  Nomination Committee  
Nomination Committee assesses and recommends to the Board candidature of directors and evaluates directors on an on-going basis.  
   
Terms of Reference  
   
Composition  
   

The Nomination Committee shall comprise of three (3) members appointed by the Board of Directors, exclusively of non-executive directors, a majority of whom must be independent.

The Chairman of the Nomination Committee shall be an independent non-executive director.

The Company Secretary shall be the secretary of the Nomination Committee. The Secretary shall maintain minutes of the proceedings of the Committee and circulate such minutes to Board of Directors.

 
   
Responsibilities and authorities  
   
  1. Recommend to the Board candidates for all directorships to be filled, taking into consideration the candidates¡¯:
    • Skills, knowledge, expertise and experience;
    • Professionalism;
    • Integrity; and
    • In the case of candidates for the position of independent non-executive directors, the nomination committee should also evaluate the candidates¡¯ ability to discharge such responsibilities/functions as expected from independent non-executive directors.
  2. Recommend to the board, candidates to fill the seats on board committee;
  3. Assist the board in an annual review of the required mix of skills and experience and other qualities including core competencies which non-executive directors should bring to the board;
  4. Annually assess and evaluate the effectiveness of the board as a whole, the board committees and the contribution of each individual director, including independent non-executive directors.
  5. Assist the board to establish a clear succession plan, including appointing, training and fixing the compensation.
 
   
Selection procedure  
   
  1. Where a new Director appointment is required, the Nomination Committee will consider the experience and skills appropriate for an appointee, having regard to those of existing board members.
  2. Upon identifying a potential appointee, specific consideration is given to the candidate¡¯s competencies, skills, qualifications, independence, other directorships and time availability and the effect of their appointment on the overall balance composition of the Board. The Board will not discriminate against any director for appointment because of gender, race, religion or others.
  3. The actual decision as to who shall be appointed is the responsibility of the full Board after considering the recommendation of the Nomination Committee.
 
   
Meeting  
   
The Committee shall meet at least once a year and from time to time as determined by the members of the Committee and the quorum shall be at least two (2) persons. Written notice of the meeting together with an agenda shall be given to the members of the Committee at least 7 days before the meeting.  
   
   
   
Page  1  |  2  |   3  
 
     
 
   
 
INSIDE EPMB INVESTOR RELATIONS NEWSROOM WHAT WE DO CUSTOMER SUPPORT CENTRE  
Corporate Profile
Strategic Partners
Careers
Track Record
Investing in EPMB
Financial Statements
Annual Reports
Corporate Calendar
Email Alerts
Bursa Malaysia Announcements
Corporate Governance
Prospectus
Analyst Reports
Press Releases
News Archive
Image Gallery
Facilities
Key Product Journal
Product Range
FAQs
Contact Us
 
         
 
  Copyright 2009-2013 © EP Manufacturing Berhad. All rights reserved.