The country’s economy depends on the drive and efficiency of its companies. Thus the effectiveness with which their boards discharge their responsibilities determines [the country’s] competitive position. They must be free to drive their companies forward, but exercise that freedom within a framework of effective accountability. This is the essence of any system of good corporate governance.”
“Corporate governance is the system by which companies are directed and controlled. Boards of directors are responsible for the governance of their companies. The shareholders’ role in governance is to appoint the directors and the auditors and to satisfy themselves that an appropriate governance structure is in place. The responsibilities of the board include setting the company’s strategic aims, providing the leadership to put them into effect, supervising the management of the business and reporting to shareholders on their stewardship. The board’s actions are subject to laws, regulations and the shareholders in general meeting.”
1992 The Committee on the Financial Aspects of Corporate Governance
At ST Engineering, the Board is accountable to shareholders for ST Engineering Group’s performance. It is committed to ensuring that a transparent system is in place where good governance is not only practised at the Board level of the holding company but is embraced throughout the organisation as part of its culture.
Comprising 15 directors (including two alternate directors), the Board’s mission is to create long term value for shareholders. It provides leadership and guidance to management on matters of corporate strategy, business directions, acquisitions and divestments, risk policy and the realisation of corporate objectives. The Board is supported in its tasks by committees that focus on the key areas of corporate governance.
To generate awareness and to facilitate the adoption of good corporate governance practices, ST Engineering has developed a Corporate Governance Framework which sets out the standards of corporate governance. All companies within the Group will be guided by this framework. All new subsidiaries that are incorporated, or acquired shall be inducted into the Group, first and foremost with the adoption of this framework.