Sunday 24 February 2013

ASSIGNMENT TWO :: (QUESTION, Select A Topic Of Your Interest And Create A Question Out Of The Topic And Answer)


CORPORATE GOVERNANCE IN MALAYSIA
&
MALAYSIAN CODE ON CORPORATE GOVERNANCE 2012

1) question : what is the malaysian code on corporate governance for 2012 ?

The Malaysian Code on Corporate Governance (Code), first issued in March 2000, marked a significant milestone in corporate governance reform in Malaysia.It codified the principles and best practices of good governance and described optimal corporate governance structures and internal processes.

Since the release of the Code, the Malaysian corporate scene has made significant strides in corporate governance standards. The mandatory reporting of compliance with the Code has enabled shareholders and the public to assess and determine the standards of corporate governance by listed companies.

While significant improvement has been achieved, it is now timely to review the Code to further strengthen corporate governance practices in line with developments in the domestic and international capital markets. In this respect, the Prime Minister, Dato’ Seri Abdullah Ahmad Badawi had announced in the Budget 2008 speech that “the Code is being reviewed to improve the quality of the board of public listed companies (PLCs) by putting in place the criteria for qualification of directors and strengthening the audit committee, as well as the internal audit function of the PLCs…. To ensure the effectiveness of the audit committee of PLCs, executive directors will no longer be allowed to become members of the audit committee. In addition, the internal audit function will be mandated for all PLCs, and the board of directors will be responsible for ensuring the adherence to the scope of internal audit functions….”

The Malaysian Code on Corporate Governance as revised in 2007 represents the continued collaborative efforts between Government and the industry. The Securities Commission (SC) would like to thank the Companies Commission of Malaysia, Bursa Malaysia Berhad, Bank Negara Malaysia, the Bar Council, the Federation of Public Listed Companies, the Malaysian Institute of Corporate Governance, the Minority Shareholders Watchdog Group, the Malaysian Accounting Standards Board, the Malaysian Institute of Accountants, the Malaysian Institute of Certified Public Accountants, The Institute of Internal Auditors Malaysia, the Malaysian Institute of Chartered Secretaries and Accountants and the Malaysian Investment Banking Association
for their invaluable feedback and comments. 




2) question : what is the malaysia's corporate governance journey ?

1.   Malaysia recognises the value of good governance and it is for this reason that we are committed to promoting and sustaining a strong culture of corporate governance. Investor confidence in Malaysia was severely affected during\ the 1997/98 Asian Financial Crisis. Policy makers learnt valuable lessons and focused their attention, amongst others, on the need to raise corporate governance standards. We undertook numerous initiatives including the issuance of the Malaysian Code on Corporate Governance (Code) in the year 2000 to strengthen our corporate governance framework.

2.   Since then, we have embarked on a journey to continuously improve our corporate governance framework. The Code was revised and securities and companies laws were amended. The Audit Oversight Board was established to provide independent oversight over external auditors of companies. The Securities Industry Dispute Resolution Center was established to facilitate the resolution of small claims by investors. Statutory derivative action was introduced to encourage private enforcement action by shareholders.

3.   In 2011, the Securities Commission Malaysia issued the Corporate Governance Blueprint 2011 (Blueprint) which outlines strategic initiatives aimed at reinforcing self and market discipline. The Malaysian Code on Corporate Governance 2012 (MCCG 2012) is a key deliverable of the Blueprint.

3) question : Corporate governance PRINCIPLES AND RECOMMENDATIONS ?





4) What are the key amendments made in the MCCG 2012?

Some of the key areas that have been strengthened in the MCCG 2012 are as follows:

Roles and responsibilities of the board
The board is required to formalise ethical standards through a code of conduct and ensure company strategies promote sustainability. It is also expected to formalise a board charter.

Composition of the board
The board should establish a Nominating Committee, chaired by a senior independent director, who is responsible to oversee the selection and assessment of directors. The Nominating Committee is charged with developing a set of criteria including policies formalising its approach to diversity of the board.

Independence of independent directors
The tenure of independent directors is capped to a cumulative period of nine years. Upon completion of the nine years, such directors can be re-designated as non-independent directors or in exceptional circumstances; the shareholders may decide that an independent director can remain in that capacity after serving a cumulative term of nine years. The board should provide strong justification to the shareholders in such exceptional circumstances.

The calculation of the tenure starts from the time the individual is first appointed as an independent director of a company. Listed companies should seek shareholders' approval at the nearest AGM before the director reaches the nine year term limit. Shareholders' approval should be sought annually after the nine year term limit. Rotation of independent directors within a group of companies is not advisable. Failure to seek shareholders' approval for the extension of the tenure of any independent director prior to the nine year term limit must be explained in the annual report.

Separation of Chairman and CEO
The positions of Chairman and CEO should be held by different individuals and the chairman must be a non-executive member of the board. Where the Chairman is not an independent director, the board should comprise a majority of independent directors. The term 'Chairman' refers to the Chairman of the Board of Directors while the 'CEO' refers to the Chief Executive of the company, whatever name called, who may or may not be a member of the board. The responsibilities of the Chairman should include leading the board in the oversight of management, while the CEO focuses on the business day-to-day management of the company and this division should be clearly defined in the board charter. Listed companies that do not comply with any of the recommendations of MCCG 2012, including the separation of positions of chairman and CEO, must explain their circumstances and reasons or justifications for doing so in their annual report.

Commitment of directors
The board is required to set out expectations on time commitment for its members and protocols for accepting new directorships. Directors should notify the chairman before accepting any new directorship. Such notification should include an indication of time commitment expected of the new appointment. The Nominating Committee should take cognisance of such new appointment in its annual assessment of directors.

Remuneration of directors
The board should establish formal and transparent remuneration policies and procedures to attract and retain directors. A Remuneration Committee can perform this function.

Risk management framework and internal controls system
The board is required to establish a sound framework to determine the company's level of risk tolerance and actively identify, assess and monitor key business risks.

Integrity of financial reporting
The Audit Committee should ensure financial statements comply with applicable financial reporting standards and assess the suitability and independence of external auditors. These recommendations are in addition to the requirements of an Audit Committee under the Listing Requirements.

Relationship between company and shareholders
The board should encourage shareholder participation at general meetings and voting on resolutions by way of poll. The chairman should inform shareholders of their rights to demand a poll vote at the commencement of a general meeting.The board is encouraged to put substantive resolutions to vote by poll and make an announcement of the detailed results showing the number of votes cast for and against each resolution.

Substantive resolutions are those which are not procedural and administrative in nature; for example, the appointment of directors and auditors, approval for issuance of shares, share buy-backs, related party transactions and resolutions that are tabled by way of supplementary circular to shareholders



REFERENCES:

http://www.sc.com.my/eng/html/cg/cg2012.pdf

http://www.sc.com.my/main.asp?
pageid=1154&menuid=1035&newsid=&linkid=&type=

http://www.investopedia.com/terms/c/corporategovernance.asp#ixzz2JfXMtUQl


http://www.businessdictionary.com/definition/corporate-governance.html#ixzz2JfUYrXUo

Friday 1 February 2013

QUESTION 2:: ~What Is The Definition Of Corporate Governance ?~



QUESTION 2:
~What Is The Definition Of Corporate Governance ?~



The corporate governance framework consists of :

(1) explicit and implicit contracts between the company and the stakeholders for distribution of responsibilitiesrights, and rewards,
(2) procedures for reconciling the sometimes conflicting interests of stakeholders in accordance with their dutiesprivileges, and roles.
(3) procedures for proper supervision, control, and information-flows to serve as a system ofchecks-and-balances. Also called corporation governance. See also Cadbury rules and governance.


Investopedia explains 'Corporate Governance' :

Corporate governance became a pressing issue following the 1992 introduction of the Sarbanes-Oxley Act in the U.S., which was ushered in to restore public confidence in companies and markets after accounting fraud bankrupted high-profile companies such as Enron and WorldCom.
Most companies strive to have a high level of corporate governance. These days, it is not enough for a company to merely be profitable; it also needs to demonstrate good corporate citizenship through environmental awareness, ethical behavior and sound corporate governance practices.

The system of rules, practices and processes by which a company is directed and controlled. Corporate governance essentially involves balancing the interests of the many stakeholders in a company - these include its shareholders, management, customers, suppliers, financiers, government and the community. Since corporate governance also provides the framework for attaining a company's objectives, it encompasses practically every sphere of management, from action plans and internal controls to performance measurement and corporate disclosure.



WIKIPEDIA explains 'Corporate Governance' :

Corporate governance  the system by which companies are directed and controlled. It involves regulatory and market mechanisms, and the roles and relationships between a company’s management, its board, its shareholders and other stakeholders, and the goals for which the corporation is governed. Lately, corporate governance has been comprehensively defined as a system of law and sound approaches by which corporations are directed and controlled focusing on the internal and external corporate structures with the intention of monitoring the actions of management and directors and thereby mitigating agency risks stemming from the devious deeds of these corporate officers.

Corporate governance consists of the set of processes, customs, policies, laws and institutions affecting the way people direct administer or control a corporation. Corporate governance also includes the relationships among the many players involved (the stakeholders) and the corporate goals. The principal players include the shareholders, management, and the board of directors. Other stakeholders include employees, suppliers, customers, banks and other lenders, regulators, the environment and the community at large.


Read more: http://en.wikipedia.org/wiki/Corporate_governance



QUESTION 1 : ~What Is The Definition Of “Business Ethic” And Why Business Ethics Is Considered “OXYMORON”~


QUESTION 1 :

~What Is The Definition Of “Business Ethic” 
And
Why Business Ethics Is Considered “OXYMORON”~


When a company's ethics will determine its reputation. Good business ethics are essential for the long-term success of an organization. implementing an ethical program will foster a successful company culture and increase profitability. Developing a business ethics program takes time and effort,but doing so will do more than improve business, it will change lives.

"ethics" can be defined as the critical, structured examination of how we should behave,in particular, how we should constrain train the pursuit of self interest when our actions effect others.
Business ethic is the study of proper business policies, business situation ,activities and decisions where issue of right and wrong are addressed.

When business people speak about “business ethics” they usually mean about things :-
(1) avoid breaking the criminal law in one’s work-related activity
(2) avoid action that may result in civil law suits against the company
(3) avoid actions that are bad for the company image.
Business ethic can be defined as the critical, structured examination of how people & institutions should behave in the world of commerce. in particular, it involves examining appropriate constrains on the pursuit of self-interest, or profits, when the actions of individuals or firm affects other


Business ethic is not law. it is ethic in the business life "structured examination of how people and institutions should behave in the world of commerce" but business ethics are often guided by law, while other times provide a basic framework that business may choose to follow in order to gain.

By oxymoron, that mean the bringing together of two apparently contradictory concepts like cheerful pessimist of deafening silence.

The main purpose of a business activity is to maximize profit. Many cases have been recorded till date on how ethics cannot be applied in business. Some of the famous cases on wrong conduct of business are the cases of Franklin Jurado guilty to money laundering and the cases of bribery in Malaysia.


In 1996, Franklin Jurado pleaded guilty to laundering $36 million on behalf of Colombian drug lord Jose Santacruz Londono. Using his economic smarts, Jurado moved the cocaine profits far and wide in an effort to make them seem like legitimate earnings.After being funneled through various European banks and companies, the funds would eventually make their way back to Santacruz Londono's businesses in Colombia. He was sentenced to seven-and-a-half years in jail.


Thursday 24 January 2013

L.O.S.E W.E.I.G.H.T N.O.W ! ! !

 

Fat Was Never Intended To Be A Burden To The Human Race. It Is A Result Of Our Lifestyle Being Out Of Balance. The Original Human Beings Made Use Of Their Fundamental Ability To Store Surplus Food In Times Of Plenty As Fat, To Be Utilised In Times Of Food Shortages. However, With Our Easier Lifestyle And The Excess Of Calories Lurking In Most Processed Foods Today, Fat Is Accumulating At A Frightening Rate. The New Image Slim Diet Plan Works In Harmony With Nature.


Net Weight: 420g
Servings: 28
Usage: Two Heaped Scoops In 200/250ml Of Water.
When To Avoid: Pregnant Or Nursing Mothers.
Flavour Sachets Contain Phenylalanine.

Alpha Lipid™ SDII™ Is Based On Assisting Your Body In Its Natural Process To Burn Fat Instead Of Glucose Or Muscle Tissue. Burning Fat Creates Ketones In The Body Which Are Used As Energy And Can Be Measured (Called Ketosis).
Alpha Lipid™ SDII™ Combines Tasty Protein Supplement Shakes, With A Simple Food Management Plan To Reduce Carbohydrate Intake, Attainable Exercise Regimes And Useful Tools And Education. The Complete Package!
It's Time To Forget About Your Old Diet And Join The Thousands Of Others Currently Enjoying Healthy And Maintainable Weight Loss With Alpha Lipid™ SDII™.


How Our Bodies Work:

The Body Has A Naturally Programmed Automatic Weight Gain/Loss System. Simply Put - If You Eat More Calories Than You Burn For Energy, You Will Gain Weight. It Is Important To Understand That Everyone's Body Metabolism Consumes Fuel At Different Rates. This Accounts For Some People Eating Little, Yet Gaining Weight, While Others Can Eat A Lot And Remain Trim And Slim.
The Principle Of The Alpha Lipidtm Sdiitm Programme Is To Tap Into The Body's Natural Weight Loss System Through Controlling Your Daily Carbohydrate Intake. It Is Really Just The Weight Gain System In Reverse - If You Eat Less Carbohydrate Than You Require For Energy, Your Stored Fat Is Burned To Provide Your Body's Energy Requirements. It Is Therefore Important To Keep An Accurate Record Of All Carbohydrates You Consume Daily. One Of The Keys To Our Programme Is The Identification Of Your Critical Carbohydrate Level.

Ketosis :

The Carbohydrate Intake Is Controlled So That When The Blood Sugar Level Reduces, The Body Will Switch Over To Burning Fat For Energy And Produce Ketones. This Form Of Ketosis Is Hypoglycaemic Ketosis Which Is Very Different From Hyperglycaemic Ketosis Occurring With Diabetes.
Ketosis Is A Natural Process Of Burning Fat For Energy. All Living Creatures Have This Ability. At Birth We Are Born In The Pink. A Baby Loses A Little Weight During The First Few Days And Most Of This Is Due To The Fat-Burning Process Supplying The Energy Needed Until Its Digestive System Is Fully Functional.

There Are Three Basic Principles For Losing Weight:


Slim Diet's Unique Benefits :-

1.     It Is Completely Natural, Safe, Rapid And Cost Effective.
2.    There Are No Ravenous Hunger Pains And A Satisfying Volume Of Food Is Consumed Daily.
3.    You Can Measure, By Means Of A Simple Test, Whether You Are Burning Fat Or Not.
4.    You Lose Only Fat, Not Lean Body Tissue (As In Low Calorie Diets), Thereby Maintaining Good Muscle And Skin Tone.
5.    Detoxification And Cleansing Of Your Body's System Is Automatic.
6.    The Plan Offers Great Encouragement, As Weight Loss Is More Rapid Than Any Other Programme Based On Calorie Or Exercise Principles.
7.    Identification Of Your Body's Metabolic Rate (Critical Carbohydrate Level).
8.    A Very Effective Support System.
9.    Establishes The Basis And Knowledge To Maintain Weight Control Forever.
10. More Energy With No Dieting Blues Or Side Effects.


Important Rules For Slim Diet II :

1.     Shake Your Slim Diet Can Before Opening. (Some Nutrients Tend To Settle During Shipping.)
2.    You Must Mix Two Scoops Of The Formula In An 8oz (250m1) Glass Or More Of Water Four Times Daily. (A Plastic Scoop Is Provided In Each Can).
3.    Eat Only From Food List. If It Is Not On The List You Cannot Have It! These Foods Have Been Carefully Chosen To Ensure Maximum And Efficient Weight Loss.
4.    You Must Have 2-4 Protein Foods Spread Over The Day With Vegetables (Raw Or Cooked) From The Food List.
5.    You Must Have A Minimum Of 20 Grams Of Carbohydrates From The Food List, But You Must Not Exceed 35 Grams.
6.    You Must Have A Total Of Two Dessertspoons Of COLD Pressed Oil And One Dessertspoon Of Cider Vinegar Daily.
Note: It Is Very Important To Have Some Oil In The Diet To Ensure Your Nutrient Circle Is Complete In The Form Of Essential Fatty Acids And Also To Facilitate The Absorption Of The Fat Soluble Vitamins In The Formula.
7.    Season Your Food With Lite Seasoner (For Extra Potassium And Sodium).
8.    Drink Two Litres Of Water A Day.
9.    Exercise Continuously For 30 Minutes Daily.
10. Check Your Critical Carbohydrate Level With Uriscan Daily.
11.  If You Have Problems With Bowel Irregularity Take 1 - 4 Scoops Of Fibre Supplement Or Fibremax Daily - 1 Scoop Per Slim Diet Mix.
12. We Recommend Taking New Image RDA Balanced Vitamin And Mineral Tablets While On Your Weight-Loss Programme As Additional Support.
13. Once Your Goal Weight Has Been Reached, Change To Slim Diet 3 Maintenance Programme For 30 - 90 Days Until Your Metabolism Has Adjusted To Your New Image.
14. Last But Not Least - Don't Cheat Yourself!




payment/order
if interested to buy please send your order through my email/phone :

# M.AMIN_AB@YAHOO.COM or call me 0176458284

for any inquiries you can direct call or email me.

*Do NOTIFY  via sms once you have bank in the payment to our account by giving  the timing, bank note no, total amount etc. Failure to do so will result in cancellation of your order
(because I do not know whether you have made ur payment)

*Goods sold are not refundable, replaceable or exchangeable. Please decide clearly before placing an order, and buy at your own risk.

*Seller will not be responsible for the loss or damage of the courier/delivery. Please check your items before you sign the slips from postmen.

Please take note that can change its terms and conditions anytime without notice.

Thanks for your support.

~assalamualaikum w.b.t~






Wednesday 23 January 2013

Introduction & Defination Of Business Ethics


~B.U.S.I.N.E.S.S _ E.T.H.I.C.S (EIB 20103)  ~ ::

PROFESOR SR DATO’ DR KAMARUDIN MOHD NOR, 

DSDK, AMK, PJK , BSc [Hons] HBP [Architecture] Universiti  Sains Malaysia; MSc [Construction Management] Heriot-Watt University, Edinburgh; Phd [Architecture] University of Wales, Cardiff ,FRISM,FRICS, MBEngMCIArb..



~What Is Business ?
:an economic activity.
:a transaction where an offer is made  by a seller and the offer is accepted by a buyer  for a consideration with the hidden agenda of a gain or profit .

~What Is Ethics?
:  The discipline dealing with what is good and bad.
 A theory, system, or set of moral principles or values.
 Ethics is beyond law. Ethics starts when the law stops.
 The institute of global ethics defines ethics as :
‘Obedience To The Unenforceable.’

~Business Ethics~
:THE STUDY OF  BUSINESS SITUATIONS, ACTIVITIES, AND DECISIONS WHERE ISSUES OF RIGHT AND WRONG ARE ADDRESSED.

~What Is Corporate Governance ?
: THE PROCESSES AND STRUCTURE BY WHICH BUSINESS AND AFFAIRS OF CORPORATE SECTOR IS DIRECTED AND MANAGED.

~Objectives Of Corporate Governance :-
# TO BUILD UP AN ELEMENT OF TRUST AND CONFIDENCE.
# ENHANCE STAKEHOLDERS’ VALUE.
# ENHANCE CORPORATE PERFORMANCE AND ACCOUNTABILITY.


~Why Ethics Is Important In Business?
*  Provide excellent service & retain customers.
*  Develop and maintain strong employee relations.
     - Suffer less turnover
*  To increase the lifetime of an organization.
*  To gain the goodwill of the community.
*  Produce safe and effective products.
*  Enjoy better employee morale.

~Benefits Of Ethical Business :-
1.  Maintains a moral cause in turbulent times.
2.  Cultivates strong teamwork and productivity.
3.  Supports employee growth and meaning.
4.  Helps to ensure that policies are legal.
5.  Helps to avoid criminal acts of “omission” and can lower fines.
6.  Helps to manage values associated with quality management and  
      strategic planning.
7.  Promotes a strong public image.
8.  Improves trust in relationships.
9.  Legitimizes managerial actions.
10. Strengthens the coherence and balance of the organisation’s culture.
11. Cultivates a greater sensitivity towards the impact of the 
        enterprise’s values and messages.
12.  Every significant management decision has an ethical value dimension.
13. There exists a clear vision and picture of integrity throughout the 
        organisation.

~What is business ??
: Business is an economic activity, a transaction where an offer is made  by a seller and the offer is accepted by a buyer  for a consideration with the hidden agenda of a gain or profit .

~How About Business Ethics ??
: THE STUDY OF  BUSINESS SITUATIONS, ACTIVITIES, AND DECISIONS WHERE ISSUES OF RIGHT AND WRONG ARE ADDRESSED.

~Why Ethics Is Important In Business?
#  Provide excellent service & retain customer#  Develop and maintain strong employee relations.
- Suffer less turnover.
#  To increase the lifetime of an organization.
#  To gain the goodwill of the community.
#  Produce safe and effective products.
#  Enjoy better employee morale.

~Benefits Of Ethical Business :-
1. Maintains a moral cause in turbulent times.
2. Cultivates strong teamwork and productivity.
3. Supports employee growth and meaning.
4. Helps to ensure that policies are legal.
5. Helps to avoid criminal acts of “omission” and can lower fines.
6. Helps to manage values associated with quality management and strategic planning
7. Promotes a strong public image.
8. Improves trust in relationships.
9. Legitimizes managerial actions.
10. Strengthens the coherence and balance of the
      organisation’s culture.
11. Cultivates a greater sensitivity towards the impact
      of the enterprise’s values and messages.
12. Every significant management decision has an
      ethical value dimension.
13. There exists a clear vision and picture of integrity
      throughout the organisation

~The Tools :-