Corporate Governance Report - Ho Bee Landhobee.com/wp-content/uploads/2015/05/HBL_Corporate... · Corporate Governance Report ... as part of its strategic formulation. ... Seavi Advent

Corporate Governance Report

Ho Bee Land Limited is committed to adopting high standards of corporate governance and transparency in conducting the Group’s businesses. The board of directors of the Company (the Board) ensures that an effective self-regulatory and OQPKVQTKPI�OGEJCPKUO�GZKUVU�CPF�KU�RTCEVKUGF��6JKU�TGRQTV�QWVNKPGU�VJG�OCKP�EQTRQTCVG�IQXGTPCPEG�RTCEVKEGU�VJCV�CTG�KP�RNCEG��YKVJ�URGEKƂE�TGHGTGPEG�VQ�VJG�RTKPEKRNGU�QH�VJG�%QFG�QH�%QTRQTCVG�)QXGTPCPEG��(the Code).

6JG�%QORCP[�CNUQ�TGHGTU�VQ�VJG�FKUENQUWTG�IWKFG�KUUWGF�D[�VJG�5KPICRQTG�'ZEJCPIG�(SGX Disclosure Guide) in January 2015 CPF�JCU�KPEQTRQTCVGF�CPUYGTU�VQ�VJG�SWGUVKQPU�UGV�QWV�KP�VJG�5):�&KUENQUWTG�)WKFG�KP�VJKU�UVCVGOGPV��5RGEKƂE�TGHGTGPEGU�are made to the Code’s guidelines set out in the SGX Disclosure Guide.

SGX Disclosure Guide:

C�� *CU�VJG�%QORCP[�EQORNKGF�YKVJ�CNN�VJG�RTKPEKRNGU�CPF�IWKFGNKPGU�QH�VJG�%QFG!�+H�PQV��RNGCUG�UVCVG�VJG�URGEKƂE�FGXKCVKQPU�CPF�VJG�CNVGTPCVKXG�EQTRQTCVG�IQXGTPCPEG�RTCEVKEGU�CFQRVGF�D[�VJG�%QORCP[�KP�NKGW�QH�VJG�TGEQOOGPFCVKQPU�KP�VJG�Code.

D�� +P�YJCV� TGURGEV�FQ� VJGUG�CNVGTPCVKXG�EQTRQTCVG�IQXGTPCPEG�RTCEVKEGU�CEJKGXG� VJG�QDLGEVKXGU�QH� VJG�RTKPEKRNGU�CPF�conform to the guidelines in the Code?

The Company has adhered to most of the principles and guidelines of the Code. Where there are deviations from VJG� TGEQOOGPFCVKQPU�QH� VJG�%QFG��YG�JCXG�RTQXKFGF� VJG� TGCUQP�CPF�GZRNCPCVKQP�QP� VJG�%QORCP[oU�RTCEVKEGU��YJGTG�appropriate.

BOARD MATTERSThe Board’s Conduct of Affairs (Principle 1)Role of the Board and Board Responsibility6JG�RTKPEKRCN� TQNG�QH� VJG�$QCTF� KU� VQ� TGXKGY�CPF�CRRTQXG� UVTCVGIKE�RNCPU�� MG[�QRGTCVKQPCN� CPF�ƂPCPEKCN� KUUWGU�� GXCNWCVG�RGTHQTOCPEG�QH�VJG�%QORCP[��CPF�UWRGTXKUG�GZGEWVKXG�OCPCIGOGPV�VQ�CEJKGXG�QRVKOCN�UJCTGJQNFGTUo�XCNWG��

The Board undertakes the following duties and responsibilities in line with the Code:-

• RTQXKFG� GPVTGRTGPGWTKCN� NGCFGTUJKR�� UGV� UVTCVGIKE� QDLGEVKXGU�� CPF� GPUWTG� VJCV� VJG� PGEGUUCT[� ƂPCPEKCN� CPF� JWOCP�resources are in place for the Company to meet its objectives;

• establish a framework of prudent and effective controls which enables risks to be assessed and managed, including safeguarding of shareholders’ interests and the Company’s assets;

• review management performance;

• identify the key stakeholder groups and recognise that their perceptions affect the Company’s reputation;

• set the Company’s values and standards (including ethical standards) and ensure that obligations to shareholders and other stakeholders are understood and met; and

• consider sustainability issues such as environmental and social factors, as part of its strategic formulation.


Board processes 6JG�$QCTF�JCU�GUVCDNKUJGF�XCTKQWU�$QCTF�EQOOKVVGGU�VQ�CUUKUV�KP�HWNƂNNKPI�KVU�FWVKGU�CPF�TGURQPUKDKNKVKGU��6JGUG�EQOOKVVGGU�are the Audit & Risk Committee (ARC), Nominating Committee (NC) and Remuneration Committee (RC) which are IQXGTPGF�D[�URGEKƂE�VGTOU�QH�TGHGTGPEG�

The Board currently holds four scheduled meetings each year. Ad hoc meetings are also convened as and when necessary VQ�CFFTGUU�CP[�URGEKƂE�OCVVGTU��6JG�CVVGPFCPEG�QH�VJG�FKTGEVQTU�CV�$QCTF�CPF�$QCTF�EQOOKVVGG�OGGVKPIU�HQT�VJG�ƂPCPEKCN�year ended 31 December 2014 is as follows:-

Name of director

Board meeting ARC meeting NC meeting RC meeting

No. of meetings held while a member

No. of meetings attended







Chua Thian Poh 4 4 N.A. N.A. 1 1 N.A. N.A.

Desmond Woon Choon Leng 4 4 N.A. N.A. N.A. N.A. N.A. N.A.

Ong Chong Hua 4 4 N.A. N.A. N.A. N.A. N.A. N.A.

Tan Keng Boon 4 4 4 4 1 1 N.A. N.A.

Ch’ng Jit Koon 4 4 4 4 1 1 N.A. N.A.

Jeffery Chan Cheow Tong 4 4 4 4 N.A. N.A. 2 2

Tan Eng Bock 4 4 N.A. N.A. N.A. N.A. 2 2

Bobby Chin Yoke Choong 4 4 4 4 1 1 2 2

Note: N.A. means not applicable.

Matters requiring Board’s approval (Guideline 1.5)


9JCV�CTG�VJG�V[RGU�QH�OCVGTKCN�VTCPUCEVKQPU�YJKEJ�TGSWKTG�CRRTQXCN�HTQO�VJG�$QCTF!

The following is a list of key matters that require Board’s approval:-

• annual budget;

• quarterly and full year results announcements;

• annual report and accounts;

• declaration of dividends;

• strategic plans; and

• major acquisitions / disposals.

Training for directors (Guideline 1.6)


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D�� 9JCV�CTG�VJG�V[RGU�QH�KPHQTOCVKQP�CPF�VTCKPKPI�RTQXKFGF�VQ�K��PGY�FKTGEVQTU�CPF�KK��GZKUVKPI�FKTGEVQTU�VQ�MGGR�VJGO�

up-to-date?

Directors are provided with the opportunity for training to ensure that they are conversant with their responsibilities and familiar with the Group’s businesses, governance practices, relevant new legislations and changing commercial risks.

6JG�FKTGEVQTU�ECP�CVVGPF��CV�VJG�%QORCP[oU�GZRGPUGU��TGNGXCPV�EQPHGTGPEGU�CPF�UGOKPCTU�KPENWFKPI�RTQITCOOGU�EQPFWEVGF�by the Singapore Institute of Directors.

The Company arranges for directors’ training program each year based on the recommendations of the NC. In addition, the %QORCP[�CTTCPIGU�HQT�RTQHGUUKQPCN�DTKGƂPIU�YJGP�PGEGUUCT[�VQ�WRFCVG�VJG�FKTGEVQTU�QP�CP[�PGY�TGIWNCVQT[�FGXGNQROGPV�which has an impact on the Group.



'CEJ�[GCT�� VJG�%QORCP[�EQPFWEVU�CP�CPPWCN�DWUKPGUU� TGXKGY�OGGVKPI�HQT� VJG�FKTGEVQTU��2TGUGPVCVKQPU�CPF�DTKGƂPIU�CTG�conducted at the annual business review meeting by the senior management on the Group’s operations, followed by discussion sessions on matters relating to operations and strategies.

6JG�FKTGEVQTU� CTG� TGIWNCTN[�DTKGHGF�D[� VJG�GZVGTPCN� CWFKVQTU�QP�PGY� TGIWNCVKQPU� CPF� MG[� EJCPIGU� VQ� ƂPCPEKCN� TGRQTVKPI�UVCPFCTFU�� +P�� VJG�GZVGTPCN�CWFKVQTU� HTQO�-2/)�..2�DTKGHGF�VJG�FKTGEVQTU�QP� K�� VJG�ƂPCPEKCN� TGRQTVKPI�UWTXGKNNCPEG�programme administered by the Accounting and Corporate Regulatory Authority; (ii) impending key changes to the 5KPICRQTG�%QORCPKGU�#EV��KKK��MG[�EJCPIGU�VQ�ƂPCPEKCN�TGRQTVKPI�UVCPFCTFU��CPF�KX��RTQRQUGF�EJCPIGU�VQ�CWFKVQTUo�TGRQTV��

Induction and orientation for new directors

There was no training for new directors in 2014 as there was no new appointment of directors. For any new director appointed to the Board, they will be briefed and issued with a director pack comprising the following information:-

• a letter of appointment which sets out the terms of appointment;

• a general guide on the duties and liabilities of a director of a listed company under the Singapore Companies Act and VJG�.KUVKPI�/CPWCN�QH�VJG�5KPICRQTG�'ZEJCPIG��

• a set of the Company’s corporate manual which contains all Company policies approved by the Board; and

• an overview presentation by senior management on the Group’s business and operations.

Board composition and guidance (Principle 2)Members of the Board

6JG� $QCTF� EQORTKUGU� GKIJV� OGODGTU�� QH� YJQO� ƂXG� CTG� KPFGRGPFGPV� PQP�GZGEWVKXG� FKTGEVQTU�� 6JG� $QCTF� EQORTKUGU�KPFKXKFWCNU� YKVJ� FKXGTUG� UMKNNU�� SWCNKƂECVKQPU� CPF� DCEMITQWPFU� YJKEJ� KPENWFG� CEEQWPVKPI�� CWFKV�� DCPMKPI�� KPXGUVOGPV��IQXGTPOGPV�CPF�DWUKPGUU�GZRGTKGPEG��#NN�VJG�FKTGEVQTU�JCXG�TGCN�GUVCVG�GZRGTKGPEG��JCXKPI�DGGP�QP�VJG�$QCTF�HQT�C�PWODGT�QH�[GCTU��CPF�CNUQ�HTQO�VJGKT�GZRGTKGPEG�ICKPGF�HTQO�QVJGT�DQCTFU�QT�QTICPKUCVKQPU��&GVCKNU�QP�VJG�RTQƂNG�QH�VJG�FKTGEVQTU�are set out on pages 12 and 13 of the Annual Report.

Key information on the directorsThe key information on the directors is set out in the following tables:-

CHUA THIAN POH %JCKTOCP�CPF�%JKGH�'ZGEWVKXG�1HƂEGT�Age: 66 &CVG�QH�ƂTUV�CRRQKPVOGPV�CU�FKTGEVQT��#WIWUV��Date of last re-appointment as director: N.A.

Board committee(s) served on

Academic and professional SWCNKƂECVKQPU�

Current directorships in other listed companies and other principal commitments

Past directorships in other listed companies held over preceding three years

Nominating Committee (Member)

N.A. Other listed companiesNil

Other principal commitments(1)

(1) Singapore Federation of Chinese Clan Associations (President)

(2) Singapore Clan Foundation (Chairman)(3) Singapore Chinese Cultural Centre Limited (Chairman)(4) Singapore Hokkien Huay Kuan (President)��5KPICRQTG�*QMMKGP�*WC[�-WCP�#HƂNKCVGF�5EJQQN�

Management Committee (Chairman)(6) The Hokkien Foundation Management Committee

(Chairman)(7) Yunnan Realty Pte Ltd (Chairman)(8) Singapore Hokkien Huay Kuan Cultural Academy

(Chairman)(9) Singapore Chinese Chamber of Commerce & Industry (Honorary President)(10) Business China (Chairman)(11) Ren Ci Hospital (Chairman)(12) Bishan East Citizens’ Consultative Committee

(Chairman)(13) Chinese Development Assistance Council Board of

Trustee (Chairman)(14) National Integration Council (Member)(15) National Steering Committee on Racial & Religious

Harmony (Member)(16) Nalanda Library Fund Limited (Director)

Nil

(1) Besides the principal commitments listed above, Mr Chua Thian Poh holds directorships in a number of related corporations, associated companies and jointly controlled entities of the Company.


DESMOND WOON CHOON LENG Executive Director Age: 59 &CVG�QH�ƂTUV�CRRQKPVOGPV�CU�FKTGEVQT��#WIWUV��Date of last re-appointment as director: 27 April 2012&CVG�QH�PGZV�TG�GNGEVKQP�CU�FKTGEVQT��#RTKN��(1)





N.A. N.A. Other listed companiesNil


Nil

Nil

(1) Mr Desmond Woon Choon Leng is retiring under Article 104 of the Company’s Articles of Association at the 27th annual general meeting and being eligible, he has offered himself for re-election. Saved as disclosed herein, there is no relationship (including immediate family relationship) between Mr Woon and the other directors or the Company.

(2) Mr Desmond Woon Choon Leng holds directorships in a number of related corporations, associated companies and jointly controlled entities of the Company.

ONG CHONG HUA Executive DirectorAge: 60&CVG�QH�ƂTUV�CRRQKPVOGPV�CU�FKTGEVQT��#WIWUV��Date of last re-appointment as director: 28 April 2014





N.A. Masters Degree in Town and Regional Planning

Other listed companiesNil


(1) Kingdom Investment Holdings Pte. Ltd. (Director) (2) FNA Group International Pte. Ltd. (Director)(3) Focus Network Agencies (Singapore) Pte. Ltd. (Director)

Nil

(1) Besides the principal commitments listed above, Mr Ong Chong Hua holds directorships in a number of related corporations, associated companies and jointly controlled entities of the Company.


TAN KENG BOONIndependent Non-Executive Director and Lead Independent DirectorAge: 69 &CVG�QH�ƂTUV�CRRQKPVOGPV�CU�FKTGEVQT��0QXGODGT��Date of last re-appointment as director: 30 April 2013





Nominating Committee(Chairman)

Audit & Risk Committee(Member)

Honours Degree in Engineering

Diploma in Business Administration


Other principal commitments(1) Seavi Advent Venture Management Pte Ltd (Managing Director)(2) Seavi Venture Management (Bermuda) Ltd (Managing Director)(3) Seavi Venture Services Pte Ltd (Managing Director)(4) Seavi Advent Partners Limited (Director)(5) SEAVI Advent Corporation Ltd (Director)(6) SEAVI Advent Management Ltd (Director)(7) SEAVI Advent Holdings Limited (Director)(8) Seavi Advent Ocean Private Equity Limited (Director)(9) Seavi Advent Equity Pte Ltd (Director)(10) Seavi Management (S) Pte Ltd (Director)(11) Seavi Advent Partners (III) Ltd (Director)(12) Seavi Advent Management Pte Ltd (Director)

EnGro Corporation Limited


BOBBY CHIN YOKE CHOONG Independent Non-Executive Director Age: 63&CVG�QH�ƂTUV�CRRQKPVOGPV�CU�FKTGEVQT��0QXGODGT��Date of last re-appointment as director: 27 April 2012&CVG�QH�PGZV�TG�GNGEVKQP�CU�FKTGEVQT��#RTKN��(1)





Audit & Risk Committee(Chairman)

Nominating Committee(Member)

Remuneration Committee(Member)

ACA (Institute of Chartered Accountants in England & Wales)

Other listed companies (1) AV Jennings Limited (Independent Director)(2) Yeo Hiap Seng Ltd (Independent Director)(3) Sembcorp Industries Ltd (Independent Director)(4) Singapore Telecommunications Limited (Independent Director)

Other principal commitments(1) Frasers Centrepoint Asset Management Ltd

(Independent Director)(2) Singapore Labour Foundation (Independent Director)(3) Council of Presidential Advisers (Member)(4) NTUC Enterprise Co-operative Limited (Deputy Chairman)(5) NTUC Fairprice Co-operative Ltd (Chairman)(6) NTUC Fairprice Foundation Ltd (Chairman)(7) Temasek Holdings (Private) Ltd (Independent Director)

(1) Neptune Orient Lines Limited

(2) Oversea-Chinese Banking Corporation Limited

(1) Mr Bobby Chin Yoke Choong is retiring under Article 104 of the Company’s Articles of Association at the 27th annual general meeting and being eligible, he has offered himself for re-election. There is no relationship (including immediate family relationship) between /T�%JKP�CPF�VJG�QVJGT�FKTGEVQTU��VJG�%QORCP[�QT�KVU��UJCTGJQNFGTU�CU�FGƂPGF�KP�VJG�%QFG��


CH’NG JIT KOONIndependent Non-Executive Director Age: 81 &CVG�QH�ƂTUV�CRRQKPVOGPV�CU�FKTGEVQT��0QXGODGT��Date of last re-appointment as director: 28 April 2014&CVG�QH�PGZV�TG�CRRQKPVOGPV�CU�FKTGEVQT��#RTKN��(1)






Nominating Committee(Member)

Degree in Economics and Political Science

Other listed companies�� 2CP�7PKVGF�%QTRQTCVKQP�.VF�0QP�'ZGEWVKXG�%JCKTOCP�(2) Progen Holdings Limited (Independent Director)(3) Santak Holdings Limited (Independent Director)

Other principal commitments(1) Chinese Development Assistance Council Board of

Trustees (Member) (2) Singapore Hokkien Huay Kuan Board of Governors

(Member)

Tung Lok Restaurants (2000) Ltd

(1) Mr Ch’ng Jit Koon is retiring under Section 153 of the Companies Act, Chapter 50 at the 27th annual general meeting and he has offered himself for re-appointment. There is no relationship (including immediate family relationship) between Mr Ch’ng and the QVJGT�FKTGEVQTU��VJG�%QORCP[�QT�KVU��UJCTGJQNFGTU�CU�FGƂPGF�KP�VJG�%QFG��

JEFFERY CHAN CHEOW TONG Independent Non-Executive Director Age: 66&CVG�QH�ƂTUV�CRRQKPVOGPV�CU�FKTGEVQT��1EVQDGT��Date of last re-appointment as director: 28 April 2014





Remuneration Committee(Chairman)


Fellow Chartered Accountant of Singapore

FCA (Institute of Chartered Accountants in England & Wales)


Other principal commitments(1) AXA Insurance Singapore Pte Ltd (Independent Director)(2) Goodhope Asia Holdings Ltd (Independent Director)

Nil


TAN ENG BOCK Independent Non-Executive DirectorAge: 78&CVG�QH�ƂTUV�CRRQKPVOGPV�CU�FKTGEVQT��1EVQDGT�� Date of last re-appointment as director: 28 April 2014&CVG�QH�PGZV�TG�CRRQKPVOGPV�CU�FKTGEVQT��#RTKN��(1)





Remuneration Committee (Member)

N.A. Other listed companiesBan Leong Technologies Ltd (Independent Director)

Other principal commitmentsKyowa Security Guard & General Services Pte Ltd (Director)

Nil

(1) Mr Tan Eng Bock is retiring under Section 153 of the Companies Act, Chapter 50 at the 27th annual general meeting and he has offered himself for re-appointment. There is no relationship (including immediate family relationship) between Mr Tan and the other FKTGEVQTU��VJG�%QORCP[�QT�KVU��UJCTGJQNFGTU�CU�FGƂPGF�KP�VJG�%QFG��

Notes:

(1) Information on directors’ shareholdings in the Company and its related corporations is set out in the Directors’ Report on pages 54 to 57 of the Annual Report.

(2) N.A. means not applicable.

Proportion of Independent Directors (Guideline 2.1)


&QGU�VJG�%QORCP[�EQORN[�YKVJ�VJG�IWKFGNKPG�QP�VJG�RTQRQTVKQP�QH�KPFGRGPFGPV�FKTGEVQTU�QP�VJG�$QCTF!�+H�PQV��RNGCUG�UVCVG�VJG�TGCUQPU�HQT�VJG�FGXKCVKQP�CPF�VJG�TGOGFKCN�CEVKQP�VCMGP�D[�VJG�%QORCP[�

6JGTG�CTG�ƂXG� KPFGRGPFGPV�FKTGEVQTU��EQPUVKVWVKPI�OQTG� VJCP��QH� VJG�$QCTF�CPF�EQORNKGU�YKVJ� VJG�IWKFGNKPG�QH� VJG�Code. The independent directors of the Company are:-

(1) Tan Keng Boon (Lead Independent Director)

(2) Ch’ng Jit Koon

(3) Jeffery Chan Cheow Tong

(4) Tan Eng Bock

(5) Bobby Chin Yoke Choong


Determining independence of independent directors (Guideline 2.3)


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D�� 9JCV�CTG�VJG�$QCTFoU�TGCUQPU�HQT�EQPUKFGTKPI�JKO�KPFGRGPFGPV!�2NGCUG�RTQXKFG�C�FGVCKNGF�GZRNCPCVKQP�

The NC assesses the independence of the independent directors annually based on the guidelines set out in the Code.

'CEJ�KPFGRGPFGPV�FKTGEVQT�KU�TGSWKTGF�VQ�OCMG�C�FGENCTCVKQP�CPPWCNN[�VQ�EQPƂTO�VJCV�VJGTG�KU�PQ�TGNCVKQPUJKR�CU�UVCVGF�KP�the Code that would otherwise deem him not to be independent. The NC has reviewed the declarations of independence D[�VJG�KPFGRGPFGPV�FKTGEVQTU�HQT�VJG�ƂPCPEKCN�[GCT�GPFGF��&GEGODGT��CPF�KU�UCVKUƂGF�VJCV�CNN�KPFGRGPFGPV�FKTGEVQTU�are suitable to be considered as independent for the purpose of Principle 2 of the Code.

Independent directors with more than 9-year tenure (Guideline 2.4)


*CU�CP[�KPFGRGPFGPV�FKTGEVQT�UGTXGF�QP�VJG�$QCTF�HQT�OQTG�VJCP�PKPG�[GCTU�HTQO�VJG�FCVG�QH�JKU�ƂTUV�CRRQKPVOGPV!�+H�UQ��RNGCUG�KFGPVKH[�VJG�FKTGEVQT�CPF�UGV�QWV�VJG�$QCTFoU�TGCUQPU�HQT�EQPUKFGTKPI�JKO�KPFGRGPFGPV�

The Company has implemented a Board Assessment Framework since 2012 which includes a robust process for reviewing FKTGEVQTUo�KPFGRGPFGPEG��$CUGF�QP�VJG�FKTGEVQTUo�RGTHQTOCPEG�CUUGUUOGPV�HQT��VJG�0%�CPF�VJG�$QCTF�CTG�UCVKUƂGF�VJCV�the directors who have reached 9-year tenure, namely Mr Tan Keng Boon, Mr Ch’ng Jit Koon, Mr Jeffery Chan Cheow Tong and Mr Tan Eng Bock, have continued to maintain independence in their oversight role and they have continued to add value to the Company. The Board values continuity and stability and recommends that they continue to serve the Board. Each independent director has recused himself in the determination of his own independence.


Determining Board’s composition (Guideline 2.6)


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D�� 2NGCUG� UVCVG� YJGVJGT� VJG� EWTTGPV� EQORQUKVKQP� QH� VJG� $QCTF� RTQXKFGU� FKXGTUKV[� QP� GCEJ� QH� VJG� HQNNQYKPI� s� UMKNNU��GZRGTKGPEG��IGPFGT�CPF�MPQYNGFIG�QH�VJG�%QORCP[��CPF�GNCDQTCVG�YKVJ�PWOGTKECN�FCVC�YJGTG�CRRTQRTKCVG�

E�� 9JCV�UVGRU�JCU�VJG�$QCTF�VCMGP�VQ�CEJKGXG�VJG�DCNCPEG�CPF�FKXGTUKV[�PGEGUUCT[�VQ�OCZKOKUG�KVU�GHHGEVKXGPGUU!

The Board’s composition is determined in accordance with the following principles:-

• VJG�$QCTF�UJQWNF�EQORTKUG�C�OCLQTKV[�QH�PQP�GZGEWVKXG�FKTGEVQTU��YKVJ�KPFGRGPFGPV�FKTGEVQTU�OCMKPI�WR�CV�NGCUV�JCNH�QH�VJG�$QCTF�CU�VJG�%JCKTOCP�CPF�%JKGH�'ZGEWVKXG�1HƂEGT�(CEO) of the Company is the same person;

• VJG�$QCTF�UJQWNF�EQORTKUG�FKTGEVQTU�YKVJ�C�DTQCF�TCPIG�QH�GZRGTVKUG�DQVJ�PCVKQPCNN[�CPF�KPVGTPCVKQPCNN[�

• the Board should have enough directors to serve on various Board committees without the directors being over-DWTFGPGF�VQ�VJG�GZVGPV�VJCV�KV�DGEQOGU�FKHƂEWNV�HQT�VJGO�VQ�HWNN[�FKUEJCTIG�VJGKT�TGURQPUKDKNKVKGU��CPF

• CNN�FKTGEVQTU�GZEGRV�VJG�%'1��CTG�UWDLGEV�VQ�TG�GNGEVKQP�QPEG�GXGT[�VJTGG�[GCTU�CV�CPPWCN�IGPGTCN�OGGVKPIU�

The composition of the Board is reviewed annually by the NC to ensure that there is a strong and independent element on the Board and that its size is appropriate to the scope and nature of the Group’s operations.

6JG�$QCTF�KU�QH�VJG�XKGY�VJCV�VJGTG�KU�UWHƂEKGPV�FKXGTUKV[�KP�UMKNNU��GZRGTKGPEG�CPF�MPQYNGFIG�QH�VJG�%QORCP[�KP�KVU�EWTTGPV�$QCTF�EQORQUKVKQP�VQ�OCZKOKUG�GHHGEVKXGPGUU��6JG�$QCTF�YKNN�VCMG�KPVQ�EQPUKFGTCVKQP�VJG�UMKNN�UGVU�CPF�GZRGTKGPEG��KPENWFKPI�gender diversity, for any future Board appointments.

%JCKTOCP�CPF�%JKGH�'ZGEWVKXG�1HƂEGT�2TKPEKRNG��There is no separation of roles between the Chairman and CEO in the Company due to the fact that Mr Chua Thian Poh who indirectly owns the majority of the shares in the Company, has been personally involved in the day-to-day operations of the %QORCP[�UKPEG�KVU�KPEQTRQTCVKQP��6JG�$QCTF�KU�QH�VJG�QRKPKQP�VJCV�KV�JCU�C�UVTQPI�CPF�KPFGRGPFGPV�ITQWR�QH�PQP�GZGEWVKXG�FKTGEVQTU�CPF�KU�YGNN�DCNCPEGF��+P�CFFKVKQP��VJG�%QORCP[�JCU�CRRQKPVGF�/T�6CP�-GPI�$QQP��CP�KPFGRGPFGPV�PQP�GZGEWVKXG�director, to be the lead independent director of the Company since 26 February 2007.

The Chairman is responsible for the effective working of the Board and his responsibilities include:-

• leading the Board to ensure its effectiveness on all aspects of its role;

• creating the conditions for overall Board and individual director effectiveness;

• demonstrating ethical leadership;

• UGVVKPI�ENGCT�GZRGEVCVKQPU�EQPEGTPKPI�VJG�%QORCP[oU�EWNVWTG��XCNWGU�CPF�DGJCXKQWTU��


• UGVVKPI�VJG�$QCTF�CIGPFC�KP�EQPUWNVCVKQP�YKVJ�VJG�GZGEWVKXG�FKTGEVQTU��CPF�GPUWTKPI�VJCV�CFGSWCVG�VKOG�KU�CXCKNCDNG�HQT�discussion of all agenda items, in particular strategic issues;

• ensuring that all Board members are furnished with complete, high-quality and timely information;

• ensuring effective communication with shareholders;

• ensuring that proper procedures are set up to comply with the Code; and

• promoting high standards of corporate governance.

Board membership (Principle 4)Nominating Committee (Guideline 4.1)6JG�0%�EQPUKUVU�QH�VJTGG�KPFGRGPFGPV�PQP�GZGEWVKXG�FKTGEVQTU�CPF�QPG�GZGEWVKXG�FKTGEVQT��6JG�EJCKTOCP�QH�VJG�0%�KU�VJG�Company’s lead independent director. The members of the NC are as follows:-

(1) Tan Keng Boon (Chairman)

(2) Ch’ng Jit Koon

(3) Chua Thian Poh


The key duties and responsibilities of the NC are as follows:-

• make recommendations on all Board and Board committee appointments and re-appointments;

• determine the performance criteria and evaluation process for assessing the performance of the Board, the Board committees and individual directors;

• TGXKGY�VJG�UK\G�CPF�EQORQUKVKQP�QH�VJG�$QCTF�VQ�GPUWTG�VJG�TKIJV�OKZ�VQ�RTQOQVG�$QCTF�GHHGEVKXGPGUU�

• determine directors’ independence;

• review succession plans for directors and key management personnel;

• set guideline on multiple board representations; and

• review and recommend training and professional development programs for directors.


Guideline on multiple board representations (Guideline 4.4)


C�� 9JCV� KU� VJG�OCZKOWO�PWODGT�QH� NKUVGF� EQORCP[�DQCTF� TGRTGUGPVCVKQPU� VJCV� VJG�%QORCP[�JCU�RTGUETKDGF� HQT� KVU�FKTGEVQTU!�9JCV�CTG�VJG�TGCUQPU�HQT�VJKU�PWODGT!

D�� +H�C�OCZKOWO�PWODGT�JCU�PQV�DGGP�FGVGTOKPGF��YJCV�CTG�VJG�TGCUQPU!

E�� 9JCV�CTG�VJG�URGEKƂE�EQPUKFGTCVKQPU�KP�FGEKFKPI�QP�VJG�ECRCEKV[�QH�FKTGEVQTU!

The Board has adopted an internal guideline recommended by the NC to address the competing time commitments that may be faced by a director holding multiple board appointments. The guideline provides that, as a general rule, the OCZKOWO�NKOKV�KU�QPG�QVJGT�NKUVGF�EQORCP[�DQCTF�TGRTGUGPVCVKQP�HQT�GCEJ�GZGEWVKXG�FKTGEVQT��VJTGG�QVJGT�NKUVGF�EQORCP[�DQCTF� TGRTGUGPVCVKQPU� HQT� GCEJ�PQP�GZGEWVKXG�FKTGEVQT�YKVJ� HWNN� VKOG�GORNQ[OGPV�� CPF� UKZ�QVJGT� NKUVGF� EQORCP[�DQCTF�TGRTGUGPVCVKQPU�HQT�GCEJ�PQP�GZGEWVKXG�FKTGEVQT�YKVJQWV�HWNN�VKOG�GORNQ[OGPV��6JG�IWKFGNKPG�KU�TGXKGYGF�D[�VJG�0%�CPPWCNN[��

+P�FGVGTOKPKPI�VJG�OCZKOWO�NKOKV��VJG�0%�EQPUKFGTU�VJG�CXGTCIG�VKOG�TGSWKTGOGPV�HQT�FKTGEVQTU�VQ�CVVGPF�OGGVKPIU��UKVG�XKUKVU�CPF�DTKGƂPIU��6JG�0%�CNUQ�EQPUKFGTU�VJG�IGPGTCN�NKOKV�UGV�D[�QVJGT�EQORCPKGU��

+P�KVU�TGXKGY�QH�FKTGEVQTU�YKVJ�OWNVKRNG�DQCTF�TGRTGUGPVCVKQP��VJG�0%�EQPUKFGTU�YJGVJGT�K��C�FKTGEVQT�JCU�IKXGP�UWHƂEKGPV�VKOG�and attention to the affairs of the Company; and (ii) is able to and has been adequately carrying out his duties as a director of the Company.

Process for selection, appointment of new directors, and re-appointment to the Board (Guideline 4.6)


2NGCUG�FGUETKDG�VJG�DQCTF�PQOKPCVKQP�RTQEGUU�HQT�VJG�%QORCP[�KP�VJG�NCUV�ƂPCPEKCN�[GCT�HQT�K��UGNGEVKPI�CPF�CRRQKPVKPI�PGY�FKTGEVQTU�CPF�KK��TG�GNGEVKPI�KPEWODGPV�FKTGEVQTU�

+P� VJG�UGNGEVKQP�RTQEGUU� HQT�CP[�PGY�FKTGEVQT�� VJG�0%�YKNN�GXCNWCVG� VJG�DCNCPEG�QH� UMKNNU�� MPQYNGFIG�CPF�GZRGTKGPEG�QP�VJG�$QCTF��CPF�FGVGTOKPG�VJG�TQNG�CPF�FGUKTCDNG�EQORGVGPEKGU�HQT�CP[�PGY�CRRQKPVOGPV�VQ�GPJCPEG�VJG�GZKUVKPI�$QCTF�composition. Such evaluation may arise from the Board’s annual evaluation process. When necessary, the NC may seek the JGNR�QH�GZVGTPCN�EQPUWNVCPV�VQ�ECTT[�QWV�VJG�UGCTEJ�RTQEGUU��6JG�0%�OC[�OGGV�YKVJ�VJG�RQVGPVKCN�ECPFKFCVG�VQ�CUUGUU�JKU�her suitability and availability. The selection process will take into account the candidate’s honesty, integrity, reputation, EQORGVGPEG�� ECRCDKNKV[� CPF� ƂPCPEKCN� UQWPFPGUU�� 6JG� $QCTF� YKNN� CNUQ� EQPUKFGT� IGPFGT� FKXGTUKV[� KP� UGGMKPI� CP[� PGY�appointment to the Board. The NC will then make a recommendation to the Board for approval.


There was no new appointment of director in 2014 as there was no vacancy arising from director resignation and no recommendation for additional director.

Eligibility of directors for re-election is reviewed by the NC based on the individual director’s performance.

Board performance (Principle 5)Board evaluation (Guideline 5.1)

SGX Disclosure Guide:C�� 9JCV�YCU�VJG�RTQEGUU�WRQP�YJKEJ�VJG�$QCTF�TGCEJGF�VJG�EQPENWUKQP�QP�KVU�RGTHQTOCPEG�HQT�VJG�ƂPCPEKCN�[GCT!

D�� *CU�VJG�$QCTF�OGV�KVU�RGTHQTOCPEG�QDLGEVKXGU!

The Ho Bee Board Assessment Framework was developed with the assistance of the Company’s consultant, KPMG Services Pte Ltd. The framework was established and approved for use by the Board to ascertain the effectiveness of the Board as a whole, its Board committees and the contribution by the Chairman and each director to the effectiveness of the Board. The framework integrates the assessment of the Board, Board committees, Chairman and individual directors. This HTCOGYQTM� KU� TGXKGYGF�CPF� TGƂPGF�CPPWCNN[��YJGP� TGSWKTGF�� VQ� KPEQTRQTCVG�DGVVGT�RTCEVKEGU� VQ�GPCDNG�CP�GHHGEVKXG�CPF�relevant assessment process.

The Board review incorporates factors such as Board composition, access to information, Board processes, accountability, monitoring of strategy, consideration of shareholders’ value, committee effectiveness, risk management, succession planning and comparison with industry peers. The annual assessment is carried out using a board evaluation questionnaire which is completed by each director. The results of the assessment is provided to the NC to assess and discuss the performance of the Board as a whole, and recommend to the Board key areas for improvement and follow-up actions. For VJG�ƂPCPEKCN�[GCT�WPFGT�TGXKGY��VJG�$QCTF�YCU�QH�VJG�XKGY�VJCV�KV�JCF�UCVKUHCEVQTKN[�OGV�KVU�RGTHQTOCPEG�QDLGEVKXGU��

The effectiveness of the Board committees is assessed annually, the results of which are assessed by the NC and the Board. Areas for improvement are subsequently provided to the committees. The assessments are carried out using comprehensive self-assessment checklists. The ARC checklist is adapted from the Guidebook for Audit Committees in Singapore (Second Edition). The NC checklist is adapted from the Nominating Committee Guide 2012 published by KPMG Singapore. The RC checklist provides a full check against the Code’s guidelines.

The Board Chairman is assessed annually by the independent directors during a meeting of independent directors, the results of which are provided to the Board Chairman immediately after the meeting.

Individual directors are assessed annually using a director performance evaluation form which is completed by the Board Chairman and the NC Chairman. The directors are assessed on how they continue to contribute effectively and demonstrate their commitment to the role as a director. It also recognises how individual strengths complement each QVJGT��WVKNKUKPI�ETKVGTKC�UWEJ�CU�NGCFGTUJKR��EQOOWPKECVKQP�UMKNNU��KPFWUVT[�GZRGTKGPEG��TKUM�OCPCIGOGPV��VKOG�EQOOKVOGPV�and professionalism.


Access to information (Principle 6)&KTGEVQTU�CTG�RTQXKFGF�YKVJ�FGVCKNGF�ƂPCPEKCN� UVCVGOGPVU�CPF� TGRQTVU� HQT�GCEJ�$QCTF�OGGVKPI�YJKEJ�CTG� TGSWKTGF� VQ�DG�circulated at least seven days in advance of each meeting. These include disclosure documents, management accounts, budgets and information pertaining to matters to be brought before the Board. In addition, all relevant information on material transactions and events are circulated to directors as and when they arise.

Additional information for independent directors (Guideline 6.1)

SGX Disclosure Guide:9JCV�V[RGU�QH�KPHQTOCVKQP�FQGU�VJG�%QORCP[�RTQXKFG�VQ�KPFGRGPFGPV�FKTGEVQTU�VQ�GPCDNG�VJGO�VQ�WPFGTUVCPF�KVU�DWUKPGUU��VJG�DWUKPGUU�CPF�ƂPCPEKCN�GPXKTQPOGPV�CU�YGNN�CU�VJG�TKUMU�HCEGF�D[�VJG�%QORCP[!�*QY�HTGSWGPVN[�KU�VJG�KPHQTOCVKQP�RTQXKFGF!

#V�GCEJ�SWCTVGTN[�OGGVKPI��VJG�KPFGRGPFGPV�FKTGEVQTU�CTG�DTKGHGF�D[�VJG�GZGEWVKXG�FKTGEVQTU�CPF�UGPKQT�OCPCIGOGPV�QP�VJG�)TQWRoU�DWUKPGUU��ƂPCPEG�CPF�TKUMU��6JG[�CTG�CNUQ�DTKGHGF�QP�MG[�FGXGNQROGPVU�KP�VJG�TGCN�GUVCVG�KPFWUVT[�DQVJ�NQECNN[�CPF�overseas.

Every Board member has independent and full access to the company secretary, auditors, senior management and other employees to seek additional information. The directors can seek independent legal and professional advice, if necessary, CV�VJG�%QORCP[oU�GZRGPUG��VQ�GPCDNG�VJGO�VQ�HWNƂNN�VJGKT�FWVKGU�CPF�TGURQPUKDKNKVKGU�

REMUNERATION MATTERSProcedures for developing remuneration policies (Principle 7)Remuneration Committee (Guideline 7.1)

6JG�4%�EQORTKUGU�VJTGG�KPFGRGPFGPV�PQP�GZGEWVKXG�FKTGEVQTU��6JG�OGODGTU�QH�VJG�4%�CTG�CU�HQNNQYU��

(1) Jeffery Chan Cheow Tong (Chairman)

(2) Tan Eng Bock


The key duties and responsibilities of the RC are as follows:-

• ensure that the level and structure of remuneration is aligned with the long term interest and risk policies of the Company;

• TGXKGY�OCPCIGOGPVoU�RTQRQUCN� CPF� TGEQOOGPF� VQ� VJG�$QCTF�QP� VJG�IGPGTCN� TGOWPGTCVKQP� HTCOGYQTM� CPF� URGEKƂE�remuneration packages for the directors and key management personnel;

• TGXKGY�CNN�DGPGƂVU� CPF� NQPI�VGTO� KPEGPVKXG� UEJGOGU� KPENWFKPI� UJCTG� UEJGOGU�� CPF�EQORGPUCVKQP�RCEMCIGU� HQT� VJG�directors and key management personnel;

• review service contracts for the directors and key management personnel; and

• ensure that there is a fair compensation system for the directors and key management personnel.


Level and mix of remuneration (Principle 8)6JG�%QORCP[oU�TGOWPGTCVKQP�OKZ�HTCOGYQTM�HQT�GZGEWVKXG�FKTGEVQTU�CPF�MG[�OCPCIGOGPV�RGTUQPPGN�KU�OCFG�WR�QH�C�DCUG�ƂZGF�UCNCT[��XCTKCDNG�QT�RGTHQTOCPEG�TGNCVGF�DQPWUGU�CPF�DGPGƂVU�CNNQYCPEGU��

In 2013, Mercer (Singapore) Pte Ltd (Mercer), an independent remuneration consultant, was engaged to carry out C�DGPEJOCTMKPI� GZGTEKUG� QP� VJG� TGOWPGTCVKQP� HQT� GZGEWVKXG�FKTGEVQTU� CPF� MG[�OCPCIGOGPV� RGTUQPPGN��/GTEGT� JCU� PQ�TGNCVKQPUJKR�YKVJ�VJG�%QORCP[��+P��VJG�%QORCP[�EQPFWEVGF�C�HWTVJGT�DGPEJOCTMKPI�GZGTEKUG�QP�%JCKTOCP�CPF�%'1�compensation.

'ZGEWVKXG�FKTGEVQTU�FQ�PQV� TGEGKXG�FKTGEVQT� HGG��6JG�$QCTF�%JCKTOCP�CPF�%'1��/T�%JWC�6JKCP�2QJ� KU�GPVKVNGF� VQ�RTQƂV�sharing incentives under his service agreement with the Company.

6JGTG� YCU� PQ� QXGTN[� IGPGTQWU� VGTOKPCVKQP� ENCWUG� KP� VJG� UGTXKEG� EQPVTCEV� QH� GZGEWVKXG� FKTGEVQTU� CPF� MG[�OCPCIGOGPV�personnel.

The RC has reviewed the Code’s recommendation on the use of contractual provisions to reclaim incentive components of TGOWPGTCVKQP�QH�GZGEWVKXG�FKTGEVQTU�CPF�MG[�OCPCIGOGPV�RGTUQPPGN��CPF�EQPUKFGTGF�KV�KTTGNGXCPV�KP�VJG�%QORCP[oU�EQPVGZV��

0QP�GZGEWVKXG�FKTGEVQTU�CTG�RCKF�FKTGEVQTUo�HGGU��UWDLGEV�VQ�VJG�CRRTQXCN�QH�UJCTGJQNFGTU�CV�VJG�CPPWCN�IGPGTCN�OGGVKPI��6JG�HTCOGYQTM�HQT�FGVGTOKPKPI�PQP�GZGEWVKXG�FKTGEVQTUo�HGGU�KP��KU�CU�HQNNQYU��

Non-Executive Director Board Chairman N.A.

Member $40,000 per annum

Lead Independent Director $10,000 per annum

Audit & Risk Committee Chairman $20,000 per annum


Nominating Committee Chairman $10,000 per annum


Remuneration Committee Chairman $10,000 per annum


Note: N.A. means not applicable.


Disclosure on remuneration (Principle 9)The remuneration of directors and key management personnel for the year ended 31 December 2014 is set out in the tables below:-

Remuneration of Directors and CEO (Guideline 9.2)


*CU�VJG�%QORCP[�FKUENQUGF�GCEJ�FKTGEVQToU�CPF�VJG�%'1oU�TGOWPGTCVKQP�CU�YGNN�CU�C�DTGCMFQYP�KP�RGTEGPVCIG�QT�FQNNCT�VGTOU�� KPVQ�DCUG�ƂZGF�UCNCT[��XCTKCDNG�QT�RGTHQTOCPEG�TGNCVGF� KPEQOG�DQPWUGU��DGPGƂVU� KP�MKPF��UVQEM�QRVKQPU�ITCPVGF��

UJCTG�DCUGF�KPEGPVKXGU�CPF�CYCTFU��CPF�QVJGT�NQPI�VGTO�KPEGPVKXGU!�+H�PQV��YJCV�CTG�VJG�TGCUQPU�HQT�PQV�FKUENQUKPI�UQ!

1) Summary remuneration table for directors and the CEO in bands of $250,000

Name of director Directors’ Fees (1)

Base /Fixed Salary

Variable or Bonuses

$GPGƂVU�or

Allowances

Share-Based

Total

Above $5,250,000 and up to $5,500,000

Chua Thian PohChairman & CEO

- 13% 84% 3% - 100%

Above $750,000 and up to $1,000,000

Ong Chong HuaExecutive director

- 35% 61% 4% - 100%

Desmond Woon Choon LengExecutive director

- 37% 59% 4% - 100%

$250,000 and below

Tan Keng BoonNon-executive director

100% - - - - 100%

Ch’ng Jit KoonNon-executive director

100% - - - - 100%

Jeffery Chan Cheow TongNon-executive director

100% - - - - 100%

Tan Eng BockNon-executive director

100% - - - - 100%

Bobby Chin Yoke ChoongNon-executive director

100% - - - - 100%

(1) Directors’ fees are subject to shareholders’ approval at the annual general meeting.


The remuneration of each individual director and the CEO is disclosed, on a named basis, in bands of $250,000 with a DTGCMFQYP�KP�RGTEGPVCIG�VGTOU�QH�VJG�TGOWPGTCVKQP�GCTPGF�VJTQWIJ�DCUG�ƂZGF�UCNCT[��XCTKCDNG�QT�RGTHQTOCPEG�TGNCVGF�KPEQOG�DQPWUGU�CPF�DGPGƂVU�KP��MKPF�CNNQYCPEGU��6JGTG�YCU�PQ�UVQEM�QRVKQP�ITCPVGF��UJCTG�DCUGF�KPEGPVKXG�CYCTF��CPF�other long term incentives. The Board is of the view that such disclosure provides adequate information on the remuneration of the directors and the CEO.

6JGTG�CTG�PQ�VGTOKPCVKQP��TGVKTGOGPV�CPF�RQUV�GORNQ[OGPV�DGPGƂVU�ITCPVGF�VQ�VJG�FKTGEVQTU�CPF�VJG�%'1��

Remuneration of key management personnel (Guideline 9.3)


C�� *CU� VJG�%QORCP[�FKUENQUGF� GCEJ� MG[�OCPCIGOGPV� RGTUQPPGNoU� TGOWPGTCVKQP�� KP� DCPFU� QH� 5�� QT� KP�OQTG�FGVCKN��CU�YGNN�CU�C�DTGCMFQYP�KP�RGTEGPVCIG�QT�FQNNCT�VGTOU��KPVQ�DCUG�ƂZGF�UCNCT[��XCTKCDNG�QT�RGTHQTOCPEG�TGNCVGF�KPEQOG�DQPWUGU��DGPGƂVU�KP�MKPF��UVQEM�QRVKQPU�ITCPVGF��UJCTG�DCUGF�KPEGPVKXGU�CPF�CYCTFU��CPF�QVJGT�NQPI�VGTO�KPEGPVKXGU!�+H�PQV��YJCV�CTG�VJG�TGCUQPU�HQT�PQV�FKUENQUKPI�UQ!

D�� 2NGCUG�FKUENQUG�VJG�CIITGICVG�TGOWPGTCVKQP�RCKF�VQ�VJG�VQR�ƂXG�MG[�OCPCIGOGPV�RGTUQPPGN�YJQ�CTG�PQV�FKTGEVQTU�QT�

VJG�%'1��

�� 5WOOCT[�TGOWPGTCVKQP�VCDNG�HQT�VQR�ƂXG�MG[�OCPCIGOGPV�RGTUQPPGN�YJQ�CTG�PQV�FKTGEVQTU�QT�VJG�%'1��KP�bands of $250,000

Name of key management personnel Base/Fixed Salary

Variable orBonuses

%HQH¿WVor

Allowances

Share-Based Total

Above $250,000 and up to $500,000

Chong Hock Chang 47% 53% - - 100%

Caroline Ee-Lee 61% 39% - - 100%

Chua Wee-Chern (1) 47% 53% - - 100%

Below $250,000

Soh Hwee Cheow (2) 60% 40% - - 100%

Lum Hon Chew 51% 49% - - 100%

(1) Mr Chua Wee-Chern is son of the Chairman & CEO, Mr Chua Thian Poh.(2) Mr Soh Hwee Cheow resigned from 8 April 2014.


6JG�TGOWPGTCVKQP�QH�VJG�VQR�ƂXG�MG[�OCPCIGOGPV�RGTUQPPGN�YJQ�CTG�PQV�FKTGEVQTU�QT�VJG�%'1��KU�FKUENQUGF��QP�C�PCOGF�DCUKU��KP�DCPFU�QH��YKVJ�C�DTGCMFQYP�KP�RGTEGPVCIG�VGTOU�QH�VJG�TGOWPGTCVKQP�GCTPGF�VJTQWIJ�DCUG�ƂZGF�UCNCT[��XCTKCDNG�QT�RGTHQTOCPEG�TGNCVGF� KPEQOG�DQPWUGU� CPF�DGPGƂVU�KP�MKPF�CNNQYCPEGU�� 6JGTG�YCU� PQ� UVQEM�QRVKQP�ITCPVGF��share-based incentive/award, and other long term incentives. The Board is of the view that such disclosure provides CFGSWCVG�KPHQTOCVKQP�QP�VJG�TGOWPGTCVKQP�QH�VJG�VQR�ƂXG�MG[�OCPCIGOGPV�RGTUQPPGN�YJQ�CTG�PQV�FKTGEVQTU�QT�VJG�%'1��

6JG�CIITGICVG�VQVCN�TGOWPGTCVKQP�RCKF�VQ�VJG�VQR�ƂXG�MG[�OCPCIGOGPV�RGTUQPPGN�YJQ�CTG�PQV�FKTGEVQTU�QT�VJG�%'1��HQT�VJG�ƂPCPEKCN�[GCT�GPFGF��&GEGODGT��KU��

6JGTG�CTG�PQ�VGTOKPCVKQP��TGVKTGOGPV�CPF�RQUV�GORNQ[OGPV�DGPGƂVU�ITCPVGF�VQ�VJG�VQR�ƂXG�MG[�OCPCIGOGPV�RGTUQPPGN�(who are not directors or the CEO).

Remuneration of employees who are immediate family member of a director or CEO (Guideline 9.4)


+U�VJGTG�CP[�GORNQ[GG�YJQ�KU�CP�KOOGFKCVG�HCOKN[�OGODGT�QH�C�FKTGEVQT�QT�VJG�%'1��CPF�YJQUG�TGOWPGTCVKQP�GZEGGFU�5��FWTKPI�VJG�[GCT!�+H�UQ��RNGCUG�KFGPVKH[�VJG�GORNQ[GG�CPF�URGEKH[�VJG�TGNCVKQPUJKR�YKVJ�VJG�TGNGXCPV�FKTGEVQT�QT�VJG�

%'1�

Besides Mr Chua Wee-Chern, who is son of the Chairman and CEO, Mr Chua Thian Poh, and whose salary is disclosed in VJG�CDQXG�TGOWPGTCVKQP�VCDNG�HQT�VJG�VQR�ƂXG��MG[�OCPCIGOGPV�RGTUQPPGN�YJQ�CTG�PQV�FKTGEVQTU�QT�VJG�%'1��VJG�HQNNQYKPI�GORNQ[GGU�CTG�KOOGFKCVG�HCOKN[�OGODGTU�QH�C�FKTGEVQT�QT�VJG�%'1�YJQUG�TGOWPGTCVKQP�GZEGGFU��KP��

Name of employee Remuneration Band

Ng Noi Hinoy (1) $250,000 and below

Chua Kong Chian (2) $250,000 and below

Chua Weijie (3) $250,000 and below

(1) Mdm Ng Noi Hinoy is the spouse of the Chairman & CEO, Mr Chua Thian Poh.(2) Mr Chua Kong Chian is brother of the Chairman & CEO, Mr Chua Thian Poh.(3) Mr Chua Weijie is son of the Chairman & CEO, Mr Chua Thian Poh.


Employee share schemes 6JG�%QORCP[oU�5JCTG�1RVKQP�5EJGOG�CRRTQXGF�CV�VJG�GZVTCQTFKPCT[�IGPGTCN�OGGVKPI�JGNF�QP��/C[��(2001 Scheme) JCF�GZRKTGF�QP��/C[��6JGTG�JCU�DGGP�PQ�PGY�UJCTG�QRVKQP�UEJGOG�QT�UJCTG�UEJGOG�UKPEG�VJG�GZRKT[�QH�VJG��Scheme.

Performance conditions for executive directors and key management personnel (Guideline 9.6)


C�� 2NGCUG�FGUETKDG�JQY�VJG� TGOWPGTCVKQP� TGEGKXGF�D[�GZGEWVKXG�FKTGEVQTU�CPF�MG[�OCPCIGOGPV�RGTUQPPGN�JCU�DGGP�FGVGTOKPGF�D[�VJG�RGTHQTOCPEG�ETKVGTKC�

D�� 9JCV�YGTG� VJG�RGTHQTOCPEG� EQPFKVKQPU� WUGF� VQ�FGVGTOKPG� VJGKT� GPVKVNGOGPV� WPFGT� VJG� UJQTV�VGTO�CPF� NQPI�VGTO�KPEGPVKXG�UEJGOGU!

(c) Were all of these performance conditions met? If not, what were the reasons?

2GTHQTOCPEG�OGCUWTG�HQT�VJG�GZGEWVKXG�FKTGEVQTU�CPF�MG[�OCPCIGOGPV�RGTUQPPGN�KU�DCUGF�QP�MG[�RGTHQTOCPEG�KPFKECVQTU�set each year for the individuals towards achievement of the Company’s objectives. The annual salary review is carried out in December each year. In setting remuneration packages, the Company takes into account the pay and employment EQPFKVKQPU�YKVJKP� VJG� KPFWUVT[� CPF� KP� EQORCTCDNG� EQORCPKGU�� CU�YGNN� CU� VJG�RTQƂVCDKNKV[�QH� VJG�)TQWR�CU� C�YJQNG�� CPF�individual performance.

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ACCOUNTABILITY AND AUDITAccountability (Principle 10)6JG�%QORCP[�JCU�DGGP�OCMKPI�CPPQWPEGOGPVU�QH� KVU�SWCTVGTN[� TGUWNVU� UKPEG�ƂPCPEKCN� [GCT��'XGT[�$QCTF�OGODGT�receives from management, detailed management accounts of the Group’s performance on a regular basis. It is the aim QH�VJG�$QCTF��KP�RTGUGPVKPI�VJG�SWCTVGTN[�CPF�CPPWCN�ƂPCPEKCN�UVCVGOGPVU�CPPQWPEGOGPVU��VQ�RTQXKFG�UJCTGJQNFGTU�YKVJ�C�EQORTGJGPUKXG�CPF�DCNCPEGF�CUUGUUOGPV�QH�VJG�)TQWRoU�RGTHQTOCPEG��ƂPCPEKCN�RQUKVKQP�CPF�RTQURGEVU�

Risk Management and Internal Controls (Principle 11)The Group has in place an Enterprise Risk Management (ERM) Framework, which governs the risk management process in the Group. Through this framework, risk capabilities and competencies are continuously enhanced. The ERM Framework CNUQ�GPCDNGU�VJG�KFGPVKƂECVKQP��RTKQTKVKUCVKQP��CUUGUUOGPV��OCPCIGOGPV�CPF�OQPKVQTKPI�QH�MG[�TKUMU�VQ�VJG�)TQWRoU�DWUKPGUU��6JG�TKUM�OCPCIGOGPV�RTQEGUU�KP�RNCEG�EQXGTU��KPVGT�CNKC��ƂPCPEKCN��QRGTCVKQPCN��KPHQTOCVKQP�VGEJPQNQI[�CPF�EQORNKCPEG�TKUMU�faced by the Group. The key risks of the Group are deliberated by the management and reported to the ARC twice a year. The ARC reviews the adequacy and effectiveness of the ERM Framework against leading practices in risk management and XKU�¼�XKU�VJG�GZVGTPCN�CPF�KPVGTPCN�GPXKTQPOGPV�YJKEJ�VJG�)TQWR�QRGTCVGU�KP�

6JG�)TQWR�JCU�GUVCDNKUJGF� TKUM�CRRGVKVG�UVCVGOGPVU�YKVJ� VQNGTCPEG� NKOKVU� VQ�OQPKVQT�UJKHVU� KP� KVU� UKIPKƂECPV� TKUMU�CPF� VQ�proactively manage them within acceptable levels. These risk appetite statements have been reviewed and approved by the Board and are monitored on a quarterly basis.

Complementing the ERM Framework is a Group-wide system of internal controls, which includes documented policies and procedures, proper segregation of duties, approval procedures and authorities, as well as checks-and-balances built into the business processes.

To ensure that internal controls and risk management processes are adequate and effective, the ARC is assisted by various KPFGRGPFGPV�RTQHGUUKQPCN�UGTXKEG�RTQXKFGTU��'ZVGTPCN�CWFKVQTU�RTQXKFG�CUUWTCPEG�QXGT�VJG�TKUM�QH�OCVGTKCN�OKUUVCVGOGPVU�KP�VJG�)TQWRoU�ƂPCPEKCN�UVCVGOGPVU��+PVGTPCN�CWFKVQTU�RTQXKFG�CUUWTCPEG�VJCV�EQPVTQNU�QXGT�VJG�MG[�TKUMU�QH�VJG�)TQWR�CTG�adequate and effective.

The Board acknowledges that it is responsible for the overall internal control framework, but recognises that no cost effective internal control system will preclude all errors and irregularities, as a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss.


Board’s commentary on the adequacy and effectiveness of the Company’s internal controls and risk management system (Guideline 11.3)

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D�� +P�TGURGEV�QH�VJG�RCUV��OQPVJU��JCU�VJG�$QCTF�TGEGKXGF�CUUWTCPEG�HTQO�VJG�%'1�CPF�VJG�%(1�CU�YGNN�CU�VJG�KPVGTPCN�CWFKVQT�VJCV��K��VJG�ƂPCPEKCN�TGEQTFU�JCXG�DGGP�RTQRGTN[�OCKPVCKPGF�CPF�VJG�ƂPCPEKCN�UVCVGOGPVU�IKXG�VTWG�CPF�HCKT�XKGY�QH�VJG�%QORCP[oU�QRGTCVKQPU�CPF�ƂPCPEGU��CPF�KK��VJG�%QORCP[oU�TKUM�OCPCIGOGPV�CPF�KPVGTPCN�EQPVTQN�U[UVGOU�CTG�GHHGEVKXG!�+H�PQV��JQY�FQGU�VJG�$QCTF�CUUWTG�KVUGNH�QH�RQKPVU�K��CPF�KK��CDQXG!

$CUGF�QP�VJG�KPVGTPCN�EQPVTQNU�GUVCDNKUJGF�CPF�OCKPVCKPGF�D[�VJG�)TQWR��YQTM�RGTHQTOGF�D[�KPFGRGPFGPV�GZVGTPCN�VJKTF�parties, and reviews performed by and assurance from the management, various Board committees and the Board, the Board with the concurrence of the ARC is of the opinion that the Group’s system of risk management and internal controls, CFFTGUUKPI�ƂPCPEKCN��QRGTCVKQPCN��EQORNKCPEG�CPF�KPHQTOCVKQP�VGEJPQNQI[�TKUMU��YGTG�CFGSWCVG�CU�CV��&GEGODGT��

The systems of internal controls and risk management established by the Group provide reasonable, but not absolute assurance that the Group will not be adversely affected by any event that can be reasonably foreseen as it strives to achieve its business objectives. However, the Board also notes that no system of internal controls and risk management can provide absolute assurance in this regard, or absolute assurance against the occurrence of material errors, poor judgement in decision making, human error, losses, fraud or other irregularities.

&WTKPI�VJG�RTQEGUU�QH�TGXKGYKPI�VJG�ƂPCPEKCN�UVCVGOGPVU�QH�VJG�)TQWR�HQT�(;��VJG�$QCTF�JCF�TGEGKXGF�CUUWTCPEG�HTQO�VJG�%'1�CPF�VJG�(KPCPEG�&KTGEVQT�VJCV�K��VJG�)TQWRoU�ƂPCPEKCN�TGEQTFU�JCXG�DGGP�RTQRGTN[�OCKPVCKPGF�CPF�VJG�ƂPCPEKCN�UVCVGOGPVU�IKXG�C�VTWG�CPF�HCKT�XKGY�QH�VJG�)TQWRoU�QRGTCVKQPU�CPF�ƂPCPEGU��CPF�KK��VJG�GHHGEVKXGPGUU�QH�VJG�)TQWRoU�TKUM�management and internal control systems.

Audit & Risk Committee (Principle 12)The Company’s Audit Committee was renamed as Audit & Risk Committee (ARC) on 7 November 2012.

6JG�#4%�KU�OCFG�WR�QH�HQWT�$QCTF�OGODGTU��CNN�QH�YJQO�CTG�KPFGRGPFGPV�PQP�GZGEWVKXG�FKTGEVQTU��6JG�OGODGTU�QH�VJG�ARC are as follows:-

1. Bobby Chin Yoke Choong (Chairman)

2. Tan Keng Boon

3. Jeffery Chan Cheow Tong

4. Ch’ng Jit Koon


The ARC meets regularly to perform the following functions:-

• TGXKGY�VJG�%QORCP[oU�SWCTVGTN[�CPF�CPPWCN�ƂPCPEKCN�UVCVGOGPVU��CPF�CP[�CPPQWPEGOGPVU�TGNCVKPI�VQ�VJG�%QORCP[oU�ƂPCPEKCN�RGTHQTOCPEG�

• review related party transactions and interested person transactions to ensure compliance with the regulations set out in the Listing Manual;

• TGXKGY�VJG�CWFKV�RNCP�CPF�CWFKV�TGRQTV�QH�VJG�GZVGTPCN�CWFKVQTU��VJGKT�GXCNWCVKQP�QH�VJG�U[UVGO�QH�KPVGTPCN�CEEQWPVKPI�controls, and management’s responses to the recommendations;

• TGXKGY�VJG�UEQRG�CPF�TGUWNVU�QH�VJG�GZVGTPCN�CWFKVU��VJGKT�EQUV�GHHGEVKXGPGUU��CPF�VJG�KPFGRGPFGPEG�CPF�QDLGEVKXKV[�QH�VJG�GZVGTPCN�CWFKVQTU�

• PQOKPCVG�GZVGTPCN�CWFKVQTU�HQT�CRRQKPVOGPV�QT�TG�CRRQKPVOGPV��CPF�TGXKGY�VJG�TGOWPGTCVKQP�CPF�VGTOU�QH�GPICIGOGPV�QH�VJG�GZVGTPCN�CWFKVQTU�

• review the internal audit programme including the scope and results of the internal audit procedures, and management responses to the recommendations;

• review the independence and resource capability of the internal auditors, and the adequacy and effectiveness of internal audits;

• approve the appointment or re-appointment, evaluation and remuneration of the internal auditors;

• review the Company’s level of risk tolerance, its risk strategy and risk policies; and ensure that the Company sets a RTQEGUU�HQT�VJG�CEEWTCVG�CPF�VKOGN[�OQPKVQTKPI�QH�NCTIG�GZRQUWTGU�CPF�EGTVCKP�TKUM�V[RGU�QH�ETKVKECN�KORQTVCPEG�

• review the Company’s overall risk assessment process and risk assessment framework; and review the parameters used in these measures and the methodology adopted;

• TGXKGY�TKUM�TGRQTVU�QP�VJG�%QORCP[�CPF�TGXKGY�CPF�OQPKVQT�OCPCIGOGPVoU�TGURQPUKXGPGUU�VQ�VJG�ƂPFKPIU��

• review the Company’s procedures for detecting fraud, including the whistle-blowing policy; and ensure that these arrangements allow proportionate and independent investigation of such matters and appropriate follow up action; and

• review and report to the Board on the adequacy and effectiveness of the Company’s internal controls including ƂPCPEKCN��QRGTCVKQPCN��EQORNKCPEG�CPF�KPHQTOCVKQP�VGEJPQNQI[�EQPVTQNU��CPF�TKUM�OCPCIGOGPV�U[UVGOU�

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The Company has provided all ARC members with a copy each of the Guidebook for Audit Committees in Singapore (Second Edition) issued jointly by the Monetary Authority of Singapore, the Accounting and Corporate Regulatory Authority CPF�VJG�5KPICRQTG�'ZEJCPIG��CPF�VJG�4KUM�)QXGTPCPEG�)WKFCPEG�HQT�.KUVGF�$QCTFU�KUUWGF�D[�VJG�%QTRQTCVG�)QXGTPCPEG�Council. In carrying out their responsibilities, the ARC members refer to these guidelines as appropriate. In addition, the ARC members have access to professional resources to keep themselves abreast of changes to accounting standards and KUUWGU�YJKEJ�OC[�JCXG�C�FKTGEV�KORCEV�QP�ƂPCPEKCN�UVCVGOGPVU��


Fees paid to external auditors (Guideline 12.6)

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ƂPCPEKCN�[GCT�

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DCUGU�HQT�VJG�#WFKV�%QOOKVVGGoU�XKGY�QP�VJG�KPFGRGPFGPEG�QH�VJG�GZVGTPCN�CWFKVQTU�

6JG�VQVCN�HGGU�RCKF�VQ�VJG�GZVGTPCN�CWFKVQTU��-2/)�..2�HQT�VJG�ƂPCPEKCN�[GCT�GPFGF��&GEGODGT��CTG�CU�FKUENQUGF�KP�the table below:-

External auditor fees for FY2014 $’000 % of total audit feesTotal Audit Fees 362

Total Non-Audit Fees 111 23%

Total Fees Paid 473

6JG�#4%�JCF�TGXKGYGF�VJG�PCVWTG�QH�PQP�CWFKV�UGTXKEGU�RTQXKFGF�D[�VJG�GZVGTPCN�CWFKVQTU�KP�(;��$CUGF�QP�VJG�GXCNWCVKQP�QH�GZVGTPCN�CWFKVQTU� HQT�(;��CPF�VCMKPI� KPVQ�EQPUKFGTCVKQP� VJG�GZVGTPCN�CWFKVQTUo�EQPƂTOCVKQP�QH� KPFGRGPFGPEG�� VJG�ARC was of the opinion that the level of non-audit services and non-audit fees would not affect the independence and QDLGEVKXKV[�QH�VJG�GZVGTPCN�CWFKVQTU��6JG�PQP�CWFKV�HGGU�FKF�PQV�GZEGGF�VJG��NKOKV�RTGUETKDGF�WPFGT�4GIWNCVKQP��2CTV�IV of the Companies Regulations.

Whistle-blowing policy The Company has in place a whistle-blowing policy. The objectives of the whistle-blowing policy are to:-

• EQOOWPKECVG�VJG�%QORCP[oU�GZRGEVCVKQPU�QH�GORNQ[GGU�QH�VJG�)TQWR�KP�FGVGEVKPI�HTCWFWNGPV�CEVKXKVKGU��OCNRTCEVKEGU�or improprieties;

• guide employees on the course of action when addressing their concerns or suspicions of fraudulent activities, malpractices or improprieties;

• provide a process for investigations and management reporting; and

• GUVCDNKUJ�RQNKEKGU�HQT�RTQVGEVKPI�YJKUVNG�DNQYGTU�CICKPUV�TGRTKUCN�D[�CP[�RGTUQP�KPVGTPCN�QT�GZVGTPCN�VQ�VJG�)TQWR�

6JG�%QORCP[� GPEQWTCIGU� KVU� QHƂEGTU� CPF� GORNQ[GGU� QH� VJG�)TQWR� VQ� QDUGTXG� VJG� JKIJGUV� UVCPFCTFU� QH� DWUKPGUU� CPF�personal ethics in the conduct of their duties and responsibilities.

+P� VJG� RWTUWKV� QH� IQQF� EQTRQTCVG� IQXGTPCPEG�� VJG� %QORCP[� GPEQWTCIGU� KVU� QHƂEGTU�� GORNQ[GGU�� XGPFQTU�EQPVTCEVQTU��consultants, suppliers and/or any other parties with whom the Group has a relationship to provide information that evidences unsafe, unlawful, unethical, fraudulent or wasteful practices.

To ensure independent investigation and appropriate follow up action, all whistle-blowing reports are submitted either to the General Manager (Human Resource & Corporate Affairs) or the Chairman of the ARC. All whistle-blower reports, including anonymous complaints are brought up to the ARC for review and reported to the Board.



Internal audit (Principle 13)Internal auditors (Guideline 13.1)

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6JG�%QORCP[oU�EWTTGPV�KPVGTPCN�CWFKVQTU�CTG�0GZKC�65�4KUM�#FXKUQT[�2VG��.VF��6JG�KPVGTPCN�CWFKVQTU�TGRQTV�FKTGEVN[�VQ�VJG�Chairman of the ARC on audit matters and to the management on administrative matters. The ARC reviews the internal CWFKV�TGRQTVU�CPF�CUUGUUGU�VJG�GHHGEVKXGPGUU�QH�VJG�KPVGTPCN�CWFKVQTU�D[�GZCOKPKPI�VJG�HQNNQYKPIU��

• the internal audit plan to ensure that the internal auditors have adequate resources to perform their audit;

• VJG�UEQRG�QH�VJG�KPVGTPCN�CWFKV�YQTM�VQ�GPUWTG�VJCV�OCLQTKV[�QH�VJG�KFGPVKƂGF�TKUMU�CTG�CWFKVGF�D[�E[ENG�

• the quality of the internal audit report to ensure the effectiveness of the internal auditors; and

• the independence of the internal auditors.

6JG�KPVGTPCN�CWFKVQTU�JCXG�EQPƂTOGF�VJCV�CNN�VJGKT�VGCO�OGODGTU�CTG�EQTRQTCVG�OGODGTU�QH�VJG�+PUVKVWVG�QH�+PVGTPCN�#WFKVQTU�(IIA) and are equipped with and practising the recommended standards by the IIA.

SHAREHOLDER RIGHTS AND RESPONSIBILITIES Shareholder rights (Principle 14) 6JG�%QORCP[�GPFGCXQWTU�VQ�VTGCV�CNN�UJCTGJQNFGTU�HCKTN[�CPF�GSWKVCDN[��CPF�TGEQIPKUG��RTQVGEV�CPF�HCEKNKVCVG�VJG�GZGTEKUG�of shareholders’ rights.

Communication with Shareholders (Principle 15)Investor Relations (Guideline 15.4)


(a) Does the Company regularly communicate with shareholders and attend to their questions? How often does the

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E�� *QY�FQGU�VJG�%QORCP[�MGGR�UJCTGJQNFGTU�KPHQTOGF�QH�EQTRQTCVG�FGXGNQROGPVU��CRCTV�HTQO�5):0'6�CPPQWPEGOGPVU�

and the annual report?

The Company has formalised its investor relation policy which sets out the Company’s principles and procedures for communicating with shareholders and the investment community. A copy of the investor relation policy can be found under the “Investor Relations” section of the Company’s website at http://www.hobee.com.

In line with the Company’s obligations for continuing disclosures, the Board’s policy is for shareholders to be informed of all major developments and transactions that impact the Group.

+PHQTOCVKQP�KU�FKUUGOKPCVGF�VQ�UJCTGJQNFGTU�QP�C�VTCPURCTGPV�CPF�VKOGN[�DCUKU��#NN�RTKEG�UGPUKVKXG�KPHQTOCVKQP�CPF�ƂPCPEKCN�results announcements are publicly released via SGXNet. The Group’s results, annual reports and media releases can also be found under the “Investor Relations” section of the Company’s website at http://www.hobee.com.

6JG�%QORCP[�PQVKƂGU�KPXGUVQTU�QH�VJG�FCVG�QH�TGNGCUG�QH�KVU�ƂPCPEKCN�TGUWNVU�VJTQWIJ�CP�5):0GV�CPPQWPEGOGPV�CDQWV�VJTGG�YGGMU�KP�CFXCPEG��4GUWNVU�HQT�VJG�ƂTUV�VJTGG�SWCTVGTU�CTG�TGNGCUGF�XKC�5):0GV�CPPQWPEGOGPV�VQ�UJCTGJQNFGTU�PQV�NCVGT�VJCP��FC[U�CHVGT�VJG�SWCTVGT�GPF�CPF�HWNN�[GCT�TGUWNVU�CTG�CPPQWPEGF�YKVJKP��FC[U�HTQO�VJG�ƂPCPEKCN�[GCT�GPF��'CEJ�SWCTVGTN[�CPF�HWNN�[GCT�ƂPCPEKCN�TGUWNV�CPPQWPEGOGPV�KU�CEEQORCPKGF�D[�C�OGFKC�TGNGCUG�

The Company’s investor relations function is led by the Finance Director who has the strategic management responsibility to KPVGITCVG�ƂPCPEG��CEEQWPVKPI��EQTRQTCVG��EQOOWPKECVKQP�CPF�NGICN�EQORNKCPEG�VQ�GPCDNG�GHHGEVKXG�EQOOWPKECVKQP�DGVYGGP�the Company and the investment community. The Finance Director meets regularly with analysts and fund managers to facilitate shareholders’ and investors’ communication.

Dividends (Guideline 15.5)


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Although the Company has not formulated a dividend policy, it has been declaring dividends since 2001. In its evaluation and TGEQOOGPFCVKQP�QH�FKXKFGPFU��VJG�$QCTF�VCMGU�KPVQ�EQPUKFGTCVKQP�VJG�)TQWRoU�QRGTCVKPI�RGTHQTOCPEG��ƂPCPEKCN�EQPFKVKQP��cash position and planned capital needs, as well as general business conditions and risks. It is the Board’s objectives to RC[�FKXKFGPF�QP�UWUVCKPCDNG�CPF�TGIWNCT�DCUKU��CPF�VQ�ITQY�FKXKFGPFU�QXGT�VKOG��KH�RQUUKDNG��DCUGF�QP�VJG�)TQWRoU�ƂPCPEKCN�performance and conditions.

Conduct of Shareholder meetings (Principle 16)Shareholders are encouraged to attend the annual general meeting as this is the principal forum for any dialogue they may have with the directors and management of the Company. The Board welcomes views and questions from shareholders and the respective chairmen of the ARC, NC and RC are available to answer any question or issue regarding the Company.

#P[�OGODGT�QH� VJG�%QORCP[�YJQ� KU� WPCDNG� VQ�CVVGPF� VJG�IGPGTCN�OGGVKPIU� ECP�CRRQKPV�WR� VQ� VYQ�RTQZKGU� VQ� CVVGPF�and vote on his/her behalf. The Company allows shareholders who hold shares through their CPF approved nominees to attend the general meetings as observers. The Company has not implemented absentia voting at general meetings due to concern that this may complicate the voting process.

Notices for general meetings are announced via SGXNet and advertised in the newspapers within prescribed timeframe prior to the meetings. The notices, together with relevant documents (such as annual report, letter to shareholders or circular) are sent by post to all shareholders.


Shareholders are informed of the rules and voting procedures that govern these general meetings. With effect from 1 August 2015, the Company will conduct voting by poll at general meetings and announce poll results via SGXNet immediately after the meetings in conformity with SGX listing rules.

The Company maintains minutes of general meetings including substantial and relevant comments or queries from shareholders relating to the meeting agenda, and responses from Board members. These minutes are made available to shareholders upon their request.

SECURITIES TRANSACTIONSThe Company has its own internal Code of Best Practices on Securities Transactions. Under the internal code, the Company CPF� KVU�QHƂEGTU�CTG�PQV�CNNQYGF� VQ�FGCN� KP� VJG�%QORCP[oU� UGEWTKVKGU�FWTKPI� VJG�RGTKQFU�EQOOGPEKPI� VYQ�YGGMU�DGHQTG�VJG�CPPQWPEGOGPV�QH�VJG�%QORCP[oU�TGUWNVU�HQT�GCEJ�QH�VJG�ƂTUV�VJTGG�SWCTVGTU�QH�KVU�ƂPCPEKCN�[GCT�CPF�QPG�OQPVJ�DGHQTG�the announcement of the Company’s annual results, as the case may be, and ending on the date of announcement of the TGNGXCPV�TGUWNVU��6JG�%QORCP[�CPF�KVU�QHƂEGTU�CTG�CNUQ�PQV�CNNQYGF�VQ�FGCN�KP�VJG�%QORCP[oU�UGEWTKVKGU�YJKNG�KP�RQUUGUUKQP�QH� WPFKUENQUGF�OCVGTKCN� � KPHQTOCVKQP�QH� VJG�)TQWR��1HƂEGTU� QH� VJG�%QORCP[� CTG� CNUQ�FKUEQWTCIGF� HTQO�FGCNKPI� KP� VJG�Company’s securities on short-term consideration.

6JG�%QORCP[�KUUWGU�SWCTVGTN[�TGOKPFGTU�VQ�KVU�FKTGEVQTU�CPF�QHƂEGTU�QP�VJG�TGUVTKEVKQPU�KP�FGCNKPIU�KP�NKUVGF�UGEWTKVKGU�QH�VJG�%QORCP[�CU�UGV�QWV�CDQXG��KP�EQORNKCPEG�YKVJ�4WNG��QH�VJG�5):�.KUVKPI�/CPWCN��#HVGT�VJG�GPF�QH�GCEJ�ƂPCPEKCN�[GCT��CNN�FKTGEVQTU�CPF�QHƂEGTU�CTG�TGSWKTGF�VQ�EQORNGVG�C�EJGEMNKUV�VQ�EQPƂTO�VJGKT�EQORNKCPEG�YKVJ�VJG�KPVGTPCN�EQFG��6JG�Company has complied with the best practices set out in the SGX Listing Manual.

INTERESTED PERSON TRANSACTIONSThe Company has adopted a set of procedures for reporting and approving interested person transactions. Details of the interested person transactions for the year ended 31 December 2014 are as follows:

Name of interested person

Aggregate value of all interested person transactions (excluding transactions less than $100,000 and transactions conducted under a shareholders’

mandate pursuant to Rule 920 of the Listing Manual)

Aggregate value of all interested person transactions conducted under a shareholders’

mandate pursuant to Rule 920 of the Listing Manual (excluding transactions less than $100,000)

N.A. N.A. N.A.

Notes:

(1) N.A. means not applicable.

�� #NN�KPVGTGUVGF�RGTUQP�VTCPUCEVKQPU�EQPFWEVGF�FWTKPI�VJG�ƂPCPEKCN�[GCT�YGTG�NGUU�VJCP��HQT�GCEJ�VTCPUCEVKQP��6JG�KPVGTGUVGF�person transactions were carried out on normal commercial terms and were not prejudicial to the interests of the Company and its minority shareholders.

PROFESSIONAL CONDUCT AND DISCIPLINE 6JG�%QORCP[�JCU�KP�RNCEG�XCTKQWU�UVCHH�RQNKEKGU�QP�EQPFWEV��EQPƂFGPVKCNKV[��EQPƃKEV�QH�KPVGTGUVU��KPVGTPGV�WUCIG��UCHG�IWCTF�QH�QHƂEKCN�KPHQTOCVKQP��KPVGNNGEVWCN�RTQRGTV[�CPF�UQHVYCTG�WUG��#NN�GORNQ[GGU�QH�VJG�%QORCP[�CTG�TGSWKTGF�VQ�EQPFWEV�CPF�ECTT[�themselves in a professional manner while at work, and undertake to observe and comply with the policies.


Documents

Corporate Governance Report - Ho Bee Landhobee.com/wp-content/uploads/2015/05/HBL_Corporate... · Corporate Governance Report ... as part of its strategic formulation. ... Seavi Advent