board
composition of the board
the company is led by the board that is effective and of quality. the board acts honestly and fiducially, which makes decisions objectively for the best interests of the company, so as to bring maximum value to the shareholders in the long term and practically fulfill its obligations to the stakeholders of the company. the board is comprised of a balanced portfolio from executive directors and independent non-executive directors (“ineds”). dr. lin zhijun and dr. chung shui ming, timpson are directors with financial management expertise. the proportion shared by the ineds satisfies the requirements of the relevant rules and regulations.
all directors are management officers and outstanding persons with wide experiences in the financial industry. they have abundant professional expertise to fully understand our businesses and the necessary skills to deal with our business matters. each of them is prudent, objective, diligent and has devoted sufficient time and efforts to handle the group’s affairs.
ineds provide the group with diversified expertise and experience. their views and participation in the meetings of the board and the board committees bring objective and independent judgments and advices on issues relating to the group’s strategies, performances, conflicts of interest and management processes, which ensure that the interests of all shareholders are taken into account.
with the assistance of the nomination committee, the board reviews its structure, size and composition (including skills, expertise and experiences) on an annual basis. the board considers the composition and proportion of its members rational and appropriate, which can fully leverage on balance of powers such that the interests of the company and the shareholders will be protected to the maximum extent.
all the existing directors (including ineds) of the company have been appointed through formal letters of appointment setting out the key terms and conditions of their appointment.
pursuant to the articles of association of the company, all directors, including the chairman and the chief executive officer, shall retire by rotation at least once every three years at annual general meetings and be eligible for re-election. all new directors appointed by the board are subject to re-election by shareholders at the next general meeting. at every annual general meeting of the company, re-election of each director (including ined) has been assigned as a separate resolution for shareholder’s voting.
if any substantial shareholder or director has a potential conflict of interest in a matter to be considered by a general meeting or the board, the relevant directors shall abstain from voting and a board meeting attended by ineds who have no material interest in the matter shall be held to discuss and vote on the same. save as disclosed above, there are no relationships (including financial, business, family or other material/relevant relationship(s)) among the board members.
board diversity
the board recognizes the importance of having a diverse board in enhancing the board effectiveness and corporate governance. a diverse board will include and make good use of differences in the skills, industry knowledge and experience, education, race, age, gender, background and other qualities of directors. these differences will be taken into account in determining the optimum composition of the board and when possible should be balanced appropriately.
the nomination committee of the company has the responsibility for identifying and nominating directors for the approval by the board. it takes the responsibility in assessing the appropriate mix of experience, expertise, skills and diversity required on the board and assessing the extent to which the required skills are represented on the board and overseeing the board succession, and also responsible for reviewing and reporting to the board in relation to board diversity.
board appointments will be based on merit and candidates will be considered against objective criteria, having due regard for the benefits of diversity on the board, including age and gender. selection of female candidates to join the board will be, in part, dependent on the pool of female candidates with the necessary knowledge, experience, skills and educational background. the final decision will be based on merit and contribution the chosen candidate will bring to the board.
the board considers that board diversity, including gender diversity, is a vital asset to the business.
at present, the board has not set any measurable objectives to implement the board diversity policy. however, the board will consider and review the board diversity policy and setting of any measurable objects (if applicable) from time to time.
directors’ liability insurance
the company has in place an appropriate directors’ and officers’ liability insurance policy for each member of the board to cover their liabilities on damages arising out of corporate activities. the coverage and the sum insured under the policy are reviewed on an annual basis.
responsibilities of the board
the board is at the core of the company’s corporate governance framework, and there is a clear division of responsibilities between the board and the management. the board is responsible for providing high-level guidance and effective oversight of the management. in general, the board:
- approves the group's long term strategy and monitors the implementation thereof;
- reviews and approves the annual business plan and financial budget;
- approves the annual and interim results;
- reviews and monitors risk management and internal control of the group;
- ensures good corporate governance and compliance; and
- monitors performance of the management.
the board authorises the management to carry out the approved strategies. the management is responsible for the day-to-day operation of the group and is required to report to the board regularly. the board has formulated the terms of reference of the board and the mandate of the senior management and the management decision committee, which set out the circumstances under which the management should report to and obtain prior approval by the management from the board before making decisions or entering into any commitments on behalf of the group. the board regularly reviews the mandate, and will update and amend the mandate when appropriate.
the terms of reference of the board
the terms of reference of the board, which are published on the company’s website 九游会登录-九游会登陆 and the website of the stock exchange, contain the terms of reference of the board as updated from time to time. the terms of reference of the board clearly define the terms of reference of the board as well as all the board committees. the board committees make recommendations to the board on relevant matters within their terms of reference, or make decisions under appropriate circumstances within the power delegated by the board. designated secretaries are assigned to all board committees to provide professional company secretarial services to the latter in order to ensure that they have adequate resources to discharge their responsibilities properly and effectively. according to the terms of reference of the board, the board and the board committees review and evaluate their respective work processes and effectiveness on an annual basis. the list of directors and the roles and functions of all directors are clearly set out in the terms of reference of the board. the board shall also promptly update and revise the terms of reference according to its needs, and the updated terms of references of the board will also be uploaded timely to the company’s website and the website of the stock exchange for public inspection.
training and support for directors
the listing rules require directors to understand their responsibilities as directors of listed companies. to ensure that newly appointed directors have adequate understanding on the responsibilities as directors of listed companies as well as the operations and business of the group, the board has set up an induction system for new directors. the company secretary will conduct such induction to each of the new directors following their appointments becoming effective, which include description of directors’ duties, the listing rules, introduction of corporate governance structure and our businesses. to ensure that all existing directors have a regular update on their knowledge, so as to form informed recommendations and advices to the board, the board has established a guideline on directors’ training. in addition to arranging appropriate trainings to existing directors on an annual basis, the company issues monthly circulars to board members, contents of which include the monthly financial statements of the group, together with reports to the directors about latest information on the company’s operation, investor relations reports, and training material to directors relating to their responsibilities. the training material is mainly used to provide board members on significant changes in the regulatory requirements applicable to both the directors and the company, the latest development in the industry and the latest development of corporate governance practices in a timely manner, which can update and review their knowledge and skills associated with directors’ duties. the company secretary also arranges meetings between board members and front-line business teams in a timely manner, which enables the board members to enhance better understanding of the front-line business development of the company. in order to comprehend the business operation and the recent development in the industry, the board members meet with business teams when they attend the everbright investment conference annually. furthermore, the company also encourages all board members to actively participate in continuing training programmes. in addition to arranging trainings to existing directors regularly, the board members are also encouraged to participate in professional training programmes as they consider appropriate, with a view to develop and update their knowledge and skills.
board meetings
at least a total of 4 regular board meetings were held annually. the schedule for the regular meetings of the board and the board committees was prepared and approved by the board at the end of the previous year. formal notices were sent to all directors at least 14 days before the meeting shall be held officially. in general, the board agenda and meeting materials were dispatched to all board or relevant committee members for review at least 3 working days before the meetings. the agenda had been prepared after sufficient consultation with the board/board committee members and the management and was then approved by the respective chairmen. the company secretary is responsible for submitting the papers of board meetings and relevant information to the directors, who have to capture the related information timely and further obtain more if necessary or seek independent professional advice accordingly. the minutes of the board/board committees contain detailed records of all the issues considered and the decisions made by the directors. the minutes, upon reviewed by all the board members, are properly kept by the office of the company secretary. the board can also seek the advices and services from the company secretary or the secretaries of the respective board committees. the company secretary is also responsible for ensuring compliance of the procedures of the board as well as the applicable laws, rules and regulations. apart from the regular board meetings, the company secretary also arranges a meeting for the chairman and the deputy chairman of the board to meet all ineds in the absence of the executive directors and the management.
the directors have to spend substantial amount of time for the meetings of the board and the board committees, including reading the papers before the meetings, allowing sufficient discussion of the issues in the meeting and giving in-depth understanding to the follow-up issues under the agenda after the meeting. the company also required the directors to disclose to the company each year the number and nature of offices held in public companies or organisations and other significant commitments, with an indication of the time involved. the board considered all directors had devoted sufficient time and efforts to deal with matters of the group.
