Corporate Governance in Malaysia Group 1

Supervised by: Ms Loh Mei Ching

Group Members

Lee Jun Keong | A140600

Seet Shao Leong | A139976

Eric Chee Foo Wei | A140019

Vivian Kong Mei Yi | A141039

Yap Zhen Yin | A140454

Tan Lilian | A141959

Lee Yingg Ting | A139917

Toh Seng Wee | A141990

Chong Jin Hui | A140638

Normaliza binti Mat Isa | A140291

Norshamilah binti Haji Nordin | A140707

Fatin Hanani Ismail | A140688

Nurul Ameerah Natasya | A141646

WHAT IS CORPORATE

GOVERNANCE?

Definition

Alan Calder: it is the system by which business corporations

are directed and controlled.

A corporations work within a governance framework which

is set first by the law and then by regulation emanating from

the regulatory bodies to which they are subject.

Sir Adrian Cadbury, who chaired the UK’s Committee on the

Financial Aspects of Corporate Governance which reported

in 1992: whole system of controls, both financial and

otherwise, by which a company is directed and controlled.

Definition

Phillip Koh in his journal “Principles, Practice

and Prospects of Corporate Governance: The

Malaysian Legal Framework”, corporate

governance is defined as the process and structure

used to direct and manage the business and affairs

of the corporation with the objective of enhancing

long-term value for shareholders and financial

viability of the business.

Definition

Organization for Economic Co-operation and

Development (OECD): a set of relationships

between a company’s board, its shareholders and

other stakeholders. It also provides the structure

through which the objectives of the company are

set, and the means of attaining those objectives

and monitoring performance, are determined.

Definition

Finance Committee on Corporate Governance in

Malaysia in the Report on Corporate Governance

(2002) stated that: ‘Corporate governance is the

process and structure used to direct and manage the

business and affairs of the company towards enhancing

business prosperity and corporate accountability with

the ultimate objective of realizing long term

shareholder value, whilst taking account the interests of

other stakeholders’.

In our words

Corporate governance is an important

system/mechanism designed to observe, regulate, and

govern the operation of a company in order to ensure

its sustainability from every aspect and its

accountability to the shareholders, while taking care the

benefits of every relevant stakeholders.

It helps the company to attain its corporate objectives

and monitors the performance of a company.

QUESTIONS?

THANK YOU