KUMPULAN FIMA ANNUAL REPORT 2019

Corporate Governance

Overview Statement

Kumpulan Fima Berhad (“the Company” or “KFima”) continues to be committed to embracing good corporate

governance practices within the Group and devotes considerable effort to identify and formalize best practices.

The Board believes that sound and effective corporate practices are fundamental to the smooth, effective and

transparent operation of a Company and its ability to attract investment, protect the rights of shareholders and

stakeholders and enhance shareholder value.

This statement illustrates the extent of which the Board has embodied the spirit and principles of the Malaysian Code

on Corporate Governance (“MCCG”) with regards to the recommendations stated under each principle for the year

under review and should be read in conjunction with the Corporate Governance Report which is accessible online at

www.fima.com.my.

CORPORATE GOVERNANCE FRAMEWORK

The diagram below illustrates the Company’s current corporate governance framework. It shows the relationship

between the Board, its Committees, the Group Managing Director (“Group MD”), senior management and various

independent assurance functions.

Accountability and reporting

Delegation and oversight

Accountability and reporting

The Board delegates powers to the

Group Managing Director for all matters

except those reserved for the Board or

its Board Committees

The Company Secretaries role is to

support the Board and its committees

• Internal auditor

• External auditors

• Legal &

professional advisor

Sets the direction and

translates Group’s

strategy into clear

expectations, standards

of performance and

behaviour for their

division

board of directors

company secretaries

senior

management

independent

assurance

audit & risk

committee

nomination &

remuneration

committee

other

committees

risk management committee

Group sustainability

committee

disclosure committee

ad-hoc committees & teams

heads of divisions

group managing director

Kumpulan Fima Berhad

(11817-V)

Annual Report 2019