KUALA LUMPUR: The Securities Commission (SC) has released the annual general meeting corporate governance checklist for shareholders (AGM CG Checklist) to promote meaningful dialogue between shareholders and board of directors at annual general meetings (AGM).
It said in a statement the AGM CG Checklist was developed with the Institutional Investors Council Malaysia and the Minority Shareholders Watch Group (MSWG).
The SC pointed out the importance of general meetings so that directors and senior management could help shareholders better understand the company’s business, governance and performance.
The regulator said Practice 12 of the Malaysian Code on Corporate Governance was to enable shareholders to participate, engage the board and senior management effectively and make informed voting decisions at General Meetings.
SC chairman Datuk Syed Zaid Albar said: “Shareholders play an important role in driving responsible corporate behaviour and the AGM is one of the platforms where they can raise material issues for discussion or seek explanation from the board and management.
“The AGM CG checklist is meant to guide shareholders on key issues they may need to consider or raise at an AGM before they exercise their voting rights.”
These relate primarily to resolutions commonly tabled at AGMs such as the appointment of directors, approval of director’s fees and the appointment of auditors. It also reminds shareholders to engage boards on other critical issues including sustainability and anti-corruption measures.
While the AGM CG checklist was developed for shareholders, the SC said other stakeholders such as consumers and potential investors should use the checklist to understand and evaluate the performance, policies and practices of companies.
The publication of the AGM CG Checklist is one of the deliverables under the SC’s Corporate Governance Strategic Priorities (2017-2020). It can be downloaded at the SC website here.
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