KUALA LUMPUR: The Securities Commission has today released the Annual General Meeting Corporate Governance Checklist for shareholders to promote meaningful dialogue between shareholders and board of directors at annual general meetings (AGM).
The checklist was developed in collaboration with the Institutional Investors Council Malaysia and the Minority Shareholders Watch Group.
The SC said AGMs are important platforms for directors and senior management to engage shareholders to facilitate greater understanding of the company’s business, governance and performance.
“The Intended Outcome of Practice 12 of the Malaysian Code on Corporate Governance allows shareholders to participate, while engaging the board and senior management effectively and make informed voting decisions at general meetings.
“Shareholders play an important role in driving responsible corporate behaviour and the AGM is one of the platforms where they can raise material issues for discussion or seek explanation from the board and management,” it said.
The SC chairman Datuk Syed Zaid Albar said the checklist was meant to guide shareholders on key issues they may need to consider or raise at an AGM before they exercise their voting rights.
He added that the checklist related primarily to resolutions commonly tabled at AGMs such as the appointment of directors, approval of director’s fees and the appointment of auditors.
It also reminds shareholders to engage boards on other critical issues including sustainability and anti-corruption measures.
Although the checklist was developed for shareholders, SC said other stakeholders including consumers and potential investors are encouraged to use the checklist to understand and evaluate the performance, policies and practices of companies.