KENANGA ANNUAL REPORT 2017

The Board of Directors (“Board”) regards corporate governance as vital to the success of Kenanga Investment Bank Berhad’s (“KIBB” or “the Company”) business and is unreservedly committed to applying the principles necessary to ensure that the principles of good governance are practised in all of its business dealings. The Board understands that the responsibility for good corporate governance rests with them. Therefore, the Board strives to adopt the principles and best practices of corporate governance and ensures that KIBB complies with the various guidelines issued by Bank Negara Malaysia (“ BNM ”), Bursa Malaysia Securities Berhad (“ Bursa Securities ”) and the Securities Commission Malaysia (“ SC ”). The Board is also committed to continuously undertake the appropriate actions to embed the said principles and recommendations of the Malaysian Code on Corporate Governance (“ MCCG ”) into the Company’s existing policies and procedures. BOARD LEADERSHIP AND EFFECTIVENESS The Board is charged with leading and guiding KIBB in an effective and responsible manner. Each Director has a legal duty to act in the best interest of KIBB. The Directors, collectively and individually, are aware of their responsibilities to shareholders and stakeholders for the manner in which the affairs of KIBB are managed. The Board sets the Company’s values and standards and ensures that its obligations to its shareholders and other stakeholders which include the regulators, business partners, clients, employees, suppliers and vendors, are clearly understood and met. The Board reserves full decision-making powers notwithstanding any delegation of authority to the Management or to Committees on matters relating to amongst others, strategies, business plans and budget; significant policies; conflict of interest issues relating to substantial shareholder and/or a Director; material acquisitions or disposals of assets not in the ordinary course of business; investment in capital projects; authority levels; risk management policies; as well as, key human resource issues. The Board reserved matters are also reflected in the Board Charter. The roles and responsibility of the Board are clearly defined in the Board Charter which is available on KIBB’s website at https://www.kenanga.com.my/KIBB_BOD.pdf The Board’s key activities during the financial year include amongst others, reviewing, deliberating and recommending, where appropriate, the following matters: Strategy • Budget and Business Plan for the Group for the financial year ending 31 December 2018; • Monthly Management Accounts; and • Quarterly Results. Kenanga Investment Bank Berhad 36 CORPORATE GOVERNANCE OVERVIEW STATEMENT