Strengths of the Board Composition of Genting Groups

 Strengths of the board composition of Genting Groups

The Board

The Board of the Genting Groups meets on a quarterly basis and additionally as required. The Board has a formal schedule of matters specifically reserved for its decision, including annual operating plan, overall strategic direction, capital expenditure plan, major capital projects, acquisitions and disposals, and the monitoring of the Group’s operating and financial performance. The Board of Directors of the Genting Groups acknowledges that their responsibility under the Bursa Securities Main Market Listing Requirements is to identify risks and ensure the implementation of appropriate control measures to manage the risks, and review the adequacy and integrity of the internal control system and management information systems and systems for compliance with applicable laws, regulations, rules, directives and guidelines. Formal Board Committees established by the Board of the Genting Groups in accordance with the Code namely the Audit Committee, Nomination Committee and Remuneration Committee to assist the Board in the discharge of its duties. The board size is the total number of directors on a board (Panasian et al., 2003; Levrau and Van den Berghe, 2007). The Genting’s Board has seven members, comprising three executive Directors and four independent non-executive Directors. The Directors have wide ranging experience and all have occupied or are currently occupying senior positions in the public and/or private sectors. All the Directors have attended the Mandatory Accreditation Programmed and are also encouraged to attend courses whether in-house or external to help them in the discharge of their duties.

Supply of Information

The Directors are given the notice of meetings and the setting out of the agenda accompanied by the relevant Board papers in sufficient time to enable the Directors to peruse, obtain additional information and to seek further clarification on the matters to be deliberated. Besides that, any Directors who wishes to seek independent professional advice in the furtherance of his duties may do so at the Group’s expense. Directors have the access to all information and records of the Company and also the advice and services of the Company Secretary. The Group acknowledges that the importance of timely and equal dissemination of material information to the shareholders, investors and public at large. The Company’s Annual General Meeting remains the principal forum for dialogue with shareholders. Shareholders are encouraged to participate in the proceedings and ask questions about the resolutions being proposed and the operations of the Group. The Group also participates in investor forums held locally and abroad and also organizes briefings and meetings with analysts and fund managers to give them a better understanding of the businesses of the Genting Group.

Internal Audit Function

The Internal Audit Division is responsible in undertaking regular and systematic review of the internal controls to provide the Audit Committee and the Board with sufficient assurance that the systems of internal control are effective in addressing the risks identified. Internal Audit submits the audit reports and plan status for review and approval by the Audit Committee on a quarterly basis. If any recommended corrective measures on risks identified will be included in the reports for implementation by Management. This Statement on Internal Control is made in accordance with the resolution of the Board.

Internal Control and Risk Management

Internal control is defined as a process, affected by the actions of board of directors and other organizational structure levels in the firm, designed to provide reasonable assurance toward achieving firm’s objectives, plans and strategies under the related laws, rules, polices and regulations (Domnişoru & Vînătoru, 2008; Li & Wei, 2008). While the goal of risk management is to create a reference framework that will allow companies to handle risk and uncertainty (Georges Dionne 2013). The Board of the Genting Group is responsible for the Group’s system of internal control and risk management and for reviewing its integrity and adequacy.  The Directors are aware that such system is designed for managing rather than eliminating the risks and therefore cannot provide an absolute assurance against material misstatement or loss. The Group has in place, an adequately resourced internal audit department in order to assist the Board in maintaining a sound system of internal control for the purposes of safeguarding shareholders’ investment and the Group’s assets. Genting Group has also put in place a risk management process to help the Board in identifying, evaluating and managing risks since proper risk management is a significant component of a sound system of internal control. The implementation and maintenance of the risk management process is carried out by the respective Risk and Business Continuity Management Committees of the Group. The Group also employs the Control Self-Assessment (CSA) to formalize the risk management process at the business or operating unit level. With the CSA, the departments or business areas of Genting Group are required to identify and evaluate controls within key functions or activities of their business processes.

Conclusion

In a nutshell, Genting Group has a very smooth and smart board of composition whether is the Board itself or the information flows between Boards. All these factors had makes their corporate operates steadily and successfully in the business field.

Weaknesses of Genting Group

Family Business

A company is considered a family business when it has been closely identified with at least two generations of a family and when this link has had a mutual influence on company policy and on the interests and objectives of the family (Donnelley 1964). There are some problems with the family owned business. One of the problems is lack of interest among family members. Sometimes, family members aren’t truly interested in joining the family business, but they do joined the family business because of the expectation from their parent or grandparent. This causes those family members do not have motivation in managing the business which brings to low work performance.