FGV Annual Report 2020

261 Who We Are How We Operate How We Are Governed Additional Information Sustainability Matters Statement & Discussion By Our Leaders PRACTICE DETAILS APPLIED / DEPARTURE / ADOPTED / NOT ADOPTED PAGE* PRINCIPLE B : EFFECTIVE AUDIT AND RISK MANAGEMENT 9.1 The board should establish an effective risk management and internal control framework. APPLIED 227-239 9.2 The board should disclose the features of its risk management and internal control framework, and the adequacy and effectiveness of this framework. APPLIED 227-239 9.3 (Step-Up) The board establishes a Risk Management Committee, which comprises a majority of independent directors, to oversee the company’s risk management framework and policies. ADOPTED 165, 216-218 10.1 The Audit Committee should ensure that the internal audit function is effective and able to function independently. APPLIED 14, 213-214 10.2 The board should disclose– • whether internal audit personnel are free from any relationships or conflicts of interest, which could impair their objectivity and independence; • the number of resources in the internal audit department; • name and qualification of the person responsible for internal audit; and • whether the internal audit function is carried out in accordance with a recognised framework. APPLIED 190, 213-214 PRINCIPLE C : INTEGRITY IN CORPORATE REPORTING AND MEANINGFUL RELATIONSHIP WITH STAKEHOLDERS 11.1 The board ensures there is effective, transparent and regular communication with its stakeholders. APPLIED 2-3, 12, 82-84, 223-225 11.2 Large companies are encouraged to adopt integrated reporting based on a globally recognised framework. APPLIED 2-3, 226 12.1 Notice for an Annual General Meeting should be given to the shareholders at least 28 days prior to the meeting. DEPARTURE 225 and Corporate Governance Report 12.2 All directors attend General Meetings. The Chair of the Audit, Nominating, Risk Management and other committees provide meaningful response to questions addressed to them. APPLIED 225 and Corporate Governance Report 12.3 Listed companies with a large number of shareholders or which have meetings in remote locations should leverage technology to facilitate– • voting including voting in absentia; and • remote shareholders’ participation at General Meetings. APPLIED 225 and Corporate Governance Report Detailed explanation on the application/departure/adoption of the principles and practices of the MCCG 2017 are explained in our Corporate Governance Report, which is available on our website at www.fgvholdings.com.