Corporate the Group’s values and standards and guarantees

Corporate
Governance Analysis

Separation
between management and ownership

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The Board of Directors
(“Board”) of Media Prima Berhad (“Media Prima” or “the
Company”) perceives Corporate Governance as being essential and vital to
the achievement of Media Prima and its Group of Companies’ (“Group”)
organizations. (BERHAD, 14 August 2012)

 

They are unreservedly dedicated to
applying the standards important to guarantee that the standards of good
governance is practised in the greater part of its business dealings in regard
of its investors and significant stakeholders.

 

The Board is the point of convergence of
the Company’s Corporate Governance framework. It is at last responsible and in
charge of the execution and undertakings of the Company and is likewise
dependable to supervise the Company’s corporate governance framework.

 

All Board individuals are relied upon to
act in professional manner, in this way upholding the core values of integrity
and undertaking with due respect to their trustee obligations and duties.

All Board individuals are responsible to
the Company for accomplishing an abnormal state of good corporate governance
framework.

 

The Board is charged of driving and managing
the Group in an effective and responsible manner. Every Director has a
legitimate obligation to act to the greatest interest of the Group. The
Directors are, aggregately and independently, mindful of their obligations to
the investors and partners for the way in which the undertakings of the Company
are overseen. The Board sets the Group’s values and standards and guarantees
that its commitments to its investors and partners are comprehended and met. (BERHAD, 14 August 2012)

 

Separation of ownership and management
can be seen in Figure 1 and Figure 2 below clearly placing the management of
the firm under the responsibility of professionals who are not its owners.  This separation allows skilled managers to
conduct the complicated business of running a large company.

 

 

 

Stockholders
Engagement

Shareholder communications is a
fundamental and long-standing aspect of the board’s trustee oversight
responsibility. Directors are obligated to provide shareholders with the information
they need to reach reasoned decisions on corporate governance matters and
issues of fundamental importance to the company’s future.

 

 

However, boards are under rising
pressure to engage more frequently and meaningfully with shareholders and
provide more information to shareholders and other stakeholders on how the

business is run.

 

Shareholder engagement refers to all the
ways that shareholders can communicate their views

to the board and that boards can
communicate their perspectives to shareholders (in addition

to existing investor relations
activities and processes). 

 

The board’s interest in shareholder
communications is a fundamental and long-standing aspect

of the board’s trustee oversight
responsibility. To discharge their duty to the company, boards must take
shareholder interests into consideration, and so directors have an interest in
understanding shareholder views about the company, its governance and its
operations.

 

To
spur more meaningful, interactive dialogue, companies are experimenting with
new ways of consulting with shareholders, such as through virtual Annual
General Meetings, Internet-based shareholder surveys, electronic shareholder
forums, governance roadshows and conference calls. Corporate websites have
become essential tools for broadcasting a company’s information and messages to
shareholders, and they are well utilized by shareholders.  Explicitly shown in Figure 3, 4 and 5 shown
some example how Media Prima board’s shares or communicates to the shareholders
and public by updating their Board policies, compensation practices, and
general governance structure throughout the year. (Media Prima
Berhad , 2017) (Media Prima,
2015)

 

 

Conflicts

Media
Prima is believed to be closely linked to the dominant ruling political party,
the United Malays National Organization (UMNO) make them less attractive for
acquisition especially during the current political climate. (Netto, 2007)