MANAGEMENT ETHICS AND CORPORATE GOVERNANCE

16. Choose the right answer on the role of the Minority Shareholder Watchdog Group (MSWG). A. Creates relationship and networking with the primary corporate governance reference and research group B. Strengthens corporate disclosure pillars on accountability and transparency C. Improves and promote the availability of company information D. Safeguards the interest of minority shareholders

17. All of the following are true about Corporate Governance, except ________

A. Process and structure used to direct and manage the business and affairs of company B. Corporate governance is present only in the reporting of listed companies C. Effective corporate governance will reduce monitoring and bonding costs D. Concerned with shareholder interests but requires balancing the needs of other stakeholders

18. Directors' functional responsibilities include: i. Safeguard the interest of the company's shareholders ii. Ensure that the company's share price is at the maximum iii. Ensure that the company's share price is not overvalued iv. Select and compensate the company's senior executives

A. i, ii and iii B. i and iv C. ii, iii and iv D. i, ii, iii and iv

19. The following are the rationales for the issuance of the revised Malaysian Code of Corporate Governance 2021 (MCCG 2021) on 28 April 2021, except A. To ensure the corporations will only follow the Code for reporting process and ignore other related Acts, Laws and Requirements B. To ensure the latest requirements of the Code are in line with the changes in the business environment and other stipulated requirements C. To enhance greater disclosure on corporate reporting for Malaysian corporations at the same time to assist better decision-making process D. To promote awareness on certain aspects of disclosure which needed greater attention

20. Inflated director's remuneration is an unethical practice that can lead to corporate failure and tarnish the shareholders' value. Demonstrate how the remuneration committee should refrain from this issue. A. show an appropriate level of vigilance and skepticism towards detection of any financial irregularities in the financial statements. B. establish a committee to assist the board in developing and administrating a fair and transparent procedure for setting policy on remuneration of directors. C. provide a clause to the directors to decide on their remuneration based on their skills and experience and this policy shall be made available on the company's website D. ensure the remuneration and incentives for directors conflicting with their obligation to bring objectivity and independent judgment on matters discussed at board meetings