Question

Identify and explain the key principles and practices of corporate governance

Answer 1

PRINCIPLES OF CORPORATE GOVERNANCE:

1. ACCOUNTABILITY

The code provides for accountability of the Company's Board of Directors to all shareholders in accordance with applicable law and provides guidance to the Board of Directors in making decision and monitoring the activities of the executive bodies.

2. TRANSPARENCY

The Company shall provide timely, accurate disclosure of information about all material facts relating to its activities,including its financial situation, social and environmental indicators,performance , ownership structure and governance of the company, as well as free access to such information for all stakeholders.

3. FAIRNESS

The Company undertakes to protect shareholder's rights and ensure equal treatment of shareholder rights and ensure equal treatment of shareholders. The Board of Director shall give all shareholders the opportunity to obtain effective redres for violations of their rights.

4.RESPONSIBILITY

The Company recognize the rights of all interested parties permitted by applicable law, and seeks to cooperate with such persons or companies for their own development and financial stability.

PRACTICES OF CORPORATE GOVERNANCE:

1. Build a strong, qualified board of directors and evaluate performance

Boards should be comprised of directors who are knowledgeable and have expertise relevant to the business and are qualified and competent, and have strong ethics and integrity,diverse backgrounds and skill sets, and sufficient time to commit to their duties.

2.Define roles and responsibilities

Establish clear lines of accontability among the Board, Chair, CEO, Executive, officers and management.

3. Emphasize integrity and ethical dealing

Not only directors declare conflicts of interest and refrain from voting on matters in which they have an interest, but a general culture of integrity in business dealing and of respect and compliance with laws and policies without fear of recrimination is critical.

4.Evaluate performance and make principled compensation decisions

The Board should set director's fees that will attract suitable candidates, but won't create an appearance of conflict in a director's independence or discharge of her duties.

5. Engage in effective risk management

Companies should regularly identify and assess the risks they face, including financial, operational, reputational, environmental, industry-realated, and legal risks