MCCG 2021

• What is corporate governance defined as?

  The process and structure to manage a company
• What is the ultimate objective of corporate governance?

  Realising long-term shareholder value
• What are the pillars of corporate governance?

  Ethical behavior, accountability, transparency, sustainability
• How does proper corporate governance benefit a company?

  By preventing unwanted conflicts and achieving goals
• What does corporate governance identify among participants in a company?

  The distribution of rights and responsibilities
• Who are considered stakeholders in corporate governance?

  Employees, customers, suppliers, society
• What does the MCCG reflect?

  Global principles and internationally recognised practices
• What is the purpose of the MCCG's flexibility?

  To raise standards of corporate governance
• What are the key features of the 2021 MCCG update?

  • Improve board policies and processes
  • Strengthen board oversight with sustainability
  • Encourage adoption of best practices
• What defines Large Companies under the MCCG?

  FTSE Bursa Malaysia Top 100 Index or RM2 billion market cap
• What happens to a company once it is classified as a Large Company?

  It remains classified for the entire financial year
• Who is encouraged to embrace the MCCG?

  Non-listed entities, including SMEs and state-owned enterprises
• What does the CARE approach stand for?

  Comprehend, Apply, and Report
• What is the goal of the CARE approach?

  To promote fair and meaningful disclosures
• What should boards do to appreciate the spirit of the MCCG?

  Understand the business case for good governance
• What is critical for long-term sustainability in corporate governance?

  Incorporating environmental, social, and governance considerations
• What should boards and management do regarding the MCCG?

  Read and understand the MCCG and supporting documents
• What is the mindset shift required for applying MCCG principles?

  From compliance to meaningful application
• What does the MCCG promote regarding subsidiaries of listed companies?

  Advocate adoption of best practices in subsidiaries
• What should companies disclose if they depart from a practice?

  Explanation for the departure and alternative practice
• What timeframe is considered reasonable for Large Companies to adopt practices?

  A timeframe of three years or less
• What are the three key principles of the MCCG?

  Board leadership, effective audit, integrity in reporting
• What is the purpose of the practices in the MCCG?

  To achieve the Intended Outcome
• Why are Step Up practices introduced in the MCCG?

  To encourage companies to strengthen governance practices
• What is the role of the board in corporate governance?

  To govern and set the strategic direction
• What is expected of directors in the current corporate landscape?

  To exercise greater vigilance and professional scepticism
• How should boards integrate sustainability into corporate governance?

  By considering ESG issues in decision-making
• What distinguishes companies with a long-term strategy?

  They build confidence among stakeholders
• What can happen to companies unprepared for stakeholder expectations?

  They may suffer loss of stakeholder confidence
• What is the significance of ethical behavior in corporate governance?

  It is a pillar of corporate governance
• How does accountability impact corporate governance?

  It ensures responsible management of resources
• Why is transparency important in corporate governance?

  It builds trust with stakeholders
• How does sustainability relate to corporate governance?

  It is integral to long-term company performance
• What is the relationship between corporate governance and long-term value?

  Good governance practices enhance long-term value
• How does the MCCG influence corporate governance practices?

  It provides a framework for best practices
• Why is balancing stakeholder interests necessary in corporate governance?

  To ensure fair treatment of all parties
• What implications does the CARE approach have on corporate governance?

  It promotes transparency and accountability
• Why is continuous professional development important in corporate governance?

  To keep abreast of governance developments
• What role does the board play in risk management?

  To oversee and mitigate risks effectively
• How does effective audit relate to corporate governance?

  It ensures accuracy and accountability in reporting