The Board of Directors (“Board”) of LBS Bina Group Berhad (“LBGB” or “Company”) recognises that diversity in Board composition and Key Senior Management is an essential element in attaining the strategic objectives of the Group and promoting good corporate governance.
To set out Company’s policy in relation to diversity of the Board of Directors and Key Senior Management of the Company.
3. PRINCIPLES ON DIVERSITY POLICY
The Company recognises and embraces the benefits of having a diverse Board and Key Senior Management to enhance the quality of its performance. With a view to achieving a sustainable and balanced development, the Company aims at increasing diversity at the Board and Key Senior Management level as an essential element in supporting the attainment of its strategic objectives and its sustainable development The diversity for the Board and Key Senior Management will be considered based on a number of aspects, including but not limited to gender, age, cultural and educational background, ethnicity, professional experience, skills and knowledge. All Board appointments will be based on merit, contribution that the selected candidates will bring to the Board. The candidates will be considered against selection criteria and objective, having due regard for the benefits of diversity on the Board. The appointment of Senior Management is also based on merit and leadership skills, with due regard for diversity in skills, experience, age, cultural background and gender.
4. MEASURABLE OBJECTIVE
The Board would take into consideration the following measures:
- The Board is of the view that, while it is important to promote diversity including gender, age and ethnicity, the board selection criteria based on an effective blend of competencies, skills, extensive experience and knowledge to strengthen the Board should remain a priority. Thus, the Company does not set any specific target for female directors in the Diversity Policy and will actively work towards having more women directors on the Board to comply with the recommendation of the Malaysian Code of Corporate Governance 2021 to have at least 30% women directors on the Board. In addition, the Company shall also observe this Policy when engaging senior management personnel.
- The Nomination and Remuneration Committee (“NRC”) is responsible in ensuring that diversity principles are adopted in Board and/ or Key Senior Management’s appointment, board performance evaluation and succession planning processes.
- The Company shall provide a suitable working environment that is free from harassment and discrimination in order to attract and retain women participation on the Board and/ or Key Senior Management.
5. MONITORING AND REPORTING
The Human Resource Department is (among other things) responsible for:
- assessing the appropriate mix of diversity in addition to skills, experience and expertise required on the Key Senior Management;
- making recommendations to the NRC to maintain an appropriate mix of diversity in addition to skills, experience and expertise on the Key Senior Management; and
- reporting to the NRC in relation to new appointment of Key Senior Management.
The NRC is (among other things) responsible for:
- assessing the appropriate mix of diversity in addition to skills, experience and expertise required on the Board and assessing the extent to which the diversity is required on the Board;
- making recommendations to the Board in relation to Board succession, including the succession of the Chairman, to maintain an appropriate mix of diversity in addition to skills, experience and expertise on the Board;
- reviewing and reporting to the Board in relation to any new development regarding Board and/or Key Senior Management’ diversity; and
- report to the Board on:
✓ initiatives undertaken by the NRC in relation to board and/or Key Senior Management’ diversity and to achieve the Measurable Objectives.
✓ progress in achieving the Measurable Objectives and to make recommendations to the Board on the same.
6. REVIEW OF POLICY
This Policy has been approved by the Board and is made available for reference on Company’s corporate website and internal computer networking system.
It shall be reviewed by the Board and updated whenever necessary to ensure the Group remains at the forefront of best practices in corporate governance. Any subsequent amendments to the Policy should only be approved by the Board upon recommendation by NRC.