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On 1 May, South Malaysia Industries (SMI) announced the appointment of Leow Thang Fong as the CEO of the Company, who was ousted as an executive director at SMI’s 52nd AGM on 27 March 2024.

Following what has transpired at SMI, MSWG urges PLCs to respect their shareholders’ voices, especially since decisions are made through a transparent voting process with results being validated by an independent scrutineer.

While it is legally permissible for a board to appoint individuals it deems fit to run the business, it is ethically questionable to appoint someone who was recently ousted to hold a key post

Navigating the role of chairman to safeguard corporate governance

A board chairman is the custodian of governance, plays a pivotal role in shaping the board's trajectory and upholding the principles of integrity, transparency, and accountability. However, board chairmen may sometimes fall short of fulfilling their duties in the forms of communication lapses, suppression of shareholders’ rights and going overboard in performing their duties.

The repercussions of these issues extend beyond the boardroom. It affects trust among stakeholders, leads to reputational damage, and diminishes confidence in the organisation's leadership.

Spearheaded by the Advisory Committee on Sustainability Reporting (ACSR), the proposed National Sustainability Reporting Framework (NSRF) is set to improve the availability of reliable, comparable and decision-useful information on companies’ material sustainability risks and opportunities.