CORPORATE GOVERNANCE
STATEMENTS
29
CITIC ENVIROTECH LTD.
Annual
Report
2015
The internal auditor reports directly to the Chairman of the Audit Committee on audit matters. The
internal auditor plans its audit work in consultation with, but independently of, the management, and its
yearly plan is submitted to the Audit Committee for approval at the beginning of the year. The internal
auditor reports to the Audit Committee regarding its findings. The Audit Committee meets the internal
auditor on a quarterly basis, without the presence of the management. The internal auditor has full
access to all the Company’s documents, records, properties and personnel including access to the Audit
Committee.
Based on the external and internal auditors’ findings, the Board with the concurrence of the Audit
Committee is of the opinion that the Group’s internal controls addressing financial, operational and
compliance risks are adequate in meeting the needs of the Group and provide reasonable (though not
absolute) assurance against material financial misstatements and loss, and safeguard the Group’s assets.
The internal controls ensure the Group’s maintenance of proper accounting records, compliance with
applicable regulations and best practices, and timely identification and containment of financial, operational
and compliance risks. The Audit Committee is also satisfied that there were no material internal control
deficiencies identified.
COMMUNICATION WITH SHAREHOLDERS
Principle 14: Shareholder Rights
Principle 15: Greater Shareholder Participation
Principle 16: Conduct of Shareholder Meetings
The Company does not practise selective disclosure. In line with continuous obligations of the Company
pursuant to the Singapore Exchange’s Listing Rules, the Board’s policy is that all shareholders should be
equally informed of all major developments impacting the Group.
Information is disseminated to shareholders on a timely basis through:
SGXNET announcements and news release
Annual Report prepared and issued to all shareholders
Company’s website at
at which shareholders can access information on the
Group.
We support the Code’s principle to encourage shareholder participation. Shareholders are encouraged
to attend the Annual General Meeting to ensure a high level of accountability and to stay informed of
the Company’s strategy and goals. At the Company’s Annual General Meetings, shareholders are given
the opportunity to voice their views and ask directors or management questions regarding the Company.
The Chairmen of the Audit, Remuneration and Nominating Committees will be normally present at the
Company’s Annual General Meetings to answer any questions relating to the work of these committees.
Notice of the Annual General Meeting is dispatched to shareholders, together with explanatory notes
or a circular on items of special business (if necessary), at least 14 days before the meeting. The Board
welcomes questions from shareholders who have an opportunity to raise issues either formally or informally
before or at the Annual General Meeting itself.
Dividend Policy
The Company’s dividend policy endeavours to balance dividend return to shareholders with the need
for long-term sustainable growth whilst aiming for an efficient capital structure. The Company strives to
provide shareholders on an annual basis with a consistent and sustainable ordinary dividend, with a variable
special dividend based on cash position, working capital, expenditure plans, acquisition opportunities and
market environment.
