Shareholder rights and responsibilities
Shareholder Rights and Communications with Shareholders
Principle 14:
Companies should treat all shareholders fairly and equitably, and should recognise, protect and facilitate the exercise of
shareholders’ rights, and continually review and update such governance arrangements.
Principle 15:
Companies should actively engage their shareholders and put in place an investor relations policy to promote regular, effective
and fair communication with shareholders.
The Company recognises the need to communicate with shareholders on all material matters affecting the Group and does not practice
selective disclosure. Financial results and other material information are communicated to shareholders on equal and timely basis
through SGXNET.
All the shareholders are entitled to receive the Annual Report together with the notice of AGMs by post, published in a newspaper and via
SGXNET within the mandatory period. Besides that, all the shareholders also will receive the relevant circular together with the notice
of Extraordinary General Meetings by post, published in a newspaper and via SGXNET.
In addition, all the shareholders may appoint maximum up to 2 proxies to attend, vote and question the Board and Management, for and
on behalf of the shareholder whom are not able to attend the general meeting personally. Therefore, all the shareholders are given an
opportunity to participate effectively and vote in general meeting.
The Company also communicates through its corporate website
which provides shareholders with corporate
announcements, press releases, annual reports and profile of the Group.
The Company does not have a fixed dividend policy. The dividend that the Board may recommend in respect of each financial year is
subject to various factors such as the level of available cash, financial performance and projected capital expenditures and investment
plans.
Conduct of Shareholder Meetings
Principle 16:
Companies should encourage greater shareholder participation at general meetings of shareholders, and allow shareholders the
opportunity to communicate their views on various matters affecting the company.
The AGM of the Company provides a principal forum for dialogue and interaction with shareholders. Members of the Board, including
the chairman of the ARMC, NC and RC, and the Company’s external auditors are present to address questions raised by shareholders
at AGMs.
The Articles provides for voting in person or by proxy at the AGMs of the Company.
Issues or matters requiring shareholders’ approval are tabled in the form of separate and distinct resolutions for each substantially
separate issue. Where the resolutions are interdependent and linked so as to form one significant proposal, the resolutions may be
“bundled” but with an explanation from the Company of the reasons and material implications.
The Company prepares minutes of general meetings that include substantial and relevant comments or queries from shareholders
relating to the agenda of the meeting, and responses from the Board and Management. These minutes are available to shareholders
upon their request.
CORPORATE GOVERNANCE REPORT
Hock Lian Seng Holdings Limited
Annual report 2014
25
