Assessment of corporate governance based on
the asean corporate governance scorecard

 

SSI believes that good corporate governance presents one of the most important factors to ensure sustainable development of a business, creating confidence and maximizing shareholder benefits.


Along with strict adherence to regulations of the law relating to corporate governance in general and regulations applied exclusively to listed companies, the governance of SSI has gradually been completed according best practices in the region and the world, such as the ASEAN Corporate Governance Scorecard.


The ASEAN Corporate Governance Scorecard is based on the corporate governance principles of the Organization for Economic Co-operation and Development (OECD) and the corporate governance framework of the participating countries, including: Malaysia, Singapore, Thailand, Indonesia, Philippines and Vietnam. Accordingly, there are five aspects to conduct a comprehensive assessment of corporate governance practices, including: Rights of Shareholders, Equitable Treatment of Shareholders, Role of Stakeholders, Disclosure and Transparency, and Responsibilities of the Board.


In recent years, SSI has made great efforts in improving its corporate governance, in line with the good standards in the region, referencing to criteria set forth in the Scorecard. Specifically, there are four aspects that SSI has performed well: Rights of Shareholders (meeting 19/21 criteria), Equitable Treatment of Shareholders (meeting 13/15 criteria), Role of Stakeholders (meeting 9/13) and Disclosure and Transparency (meeting 30/32).


For the criteria that fall short, especially in terms of Responsibilities of the Board, the Company has developed a roadmap and action plans to meet the standards mentioned such as: Establishment of subcommittees, mechanism for evaluating members of the Board, activities of members of the Board.


Detailed assessment is provided as follows:
 

A.    SHAREHOLDER RIGHTS

 

 

B.    EQUITABLE TREATMENT OF SHAREHOLDERS

 

 

C.    ROLE OF STAKEHOLDERS

 

 

D.    DISCLOSURE AND TRANSPARENCY

 

 

E.    RESPONSIBILITIES OF THE BOARD OF DIRECTORS