MACAY HOLDINGS, INC. ANNUAL CORPORATE GOVERNANCE Corporate Gover¢  Macay Holdings, Inc. 2015 Annual

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  • Macay Holdings, Inc. 2015 Annual Corporate Governance Report 1

    MACAY HOLDINGS, INC. ANNUAL CORPORATE GOVERNANCE REPORT

  • Macay Holdings, Inc. 2015 Annual Corporate Governance Report 2

    SECURITIES AND EXCHANGE COMMISSION

    SEC FORM – ACGR

    ANNUAL CORPORATE GOVERNANCE REPORT

    1. Report is Filed for the Year : 2015

    2. SEC Identification Number: PW998

    3. BIR Tax Identification Number: 000-410-269

    4. Exact Name of Registrant as Specified in its Charter: MACAY HOLDINGS, INC.

    5. Province , country or other jurisdiction of incorporation or organization

    Philippines

    6. Industry Classification Code (SEC Use Only)

    7. Address of Principal Office Postal Code

    137 Yakal Street, San Antonio Village, Makati City 1203

    8. Issuer’s Telephone number, including area code

    (632) 893-0733

    9. Former name or former address, if changed from the last report

    Maybank ATR Kim Eng Financial Corporation

    10. Securities registered pursuant to Sections 8 and 12 of the Code, or Sections 4 and 8 of the RSA

    Title of each Class Number of Shares of common

    Stock Outstanding

    Amount of debt outstanding (Unpaid

    Subscription)

    Common Share 1,068,393,223 None

    11. Are any or all of the securities listed on a Stock Exchange?

    Yes [ x ] No [ ]

    If yes, state the name of such Stock Exchange and the class/es of securities listed therein:

    THE PHILIPPINE STOCK EXCHANGE, INC.

  • Macay Holdings, Inc. 2015 Annual Corporate Governance Report 3

    TABLE OF CONTENTS

    A. BOARD MATTERS ............................................................................................................ 5

    1) Board of Directors ................................................................................................................. 5

    2) Chairman and CEO .............................................................................................................. 15

    3) Succession Plan for Board of Directors and Senior Management ......................................... 17

    4) Other Executive, Non-Executive and Independent Directors ............................................... 17

    5) Changes in the Board of Directors ....................................................................................... 21

    6) Orientation and Education Program .................................................................................... 28

    B. CODE OF BUSINESS CONDUCT & ETHICS ....................................................................... 28

    1) Policies ............................................................................................................................... 28

    2) Dissemination of Cost of Ethics or Conduct ......................................................................... 28

    3) Implementation of and Compliance with Code .................................................................... 29

    4) Related Party Transactions .................................................................................................. 29

    5) Family, Commercial and Contractual Relations .................................................................... 31

    6) Alternative Dispute Resolution ............................................................................................ 32

    C. BOARD MEETINGS & ATTENDANCE .............................................................................. 32

    1) Schedule of Meetings.......................................................................................................... 32

    2) Attendance of Directors ...................................................................................................... 32

    3) Separate Meetings of Non-Executive Directors ................................................................... 32

    4) Quorum Requirement ......................................................................................................... 32

    5) Access to Information ......................................................................................................... 33

    6) External Advice ................................................................................................................... 34

    7) Change/s in existing policies ............................................................................................... 35

    D. REMUNERATION MATTERS ........................................................................................... 35

    1) Remuneration Process ........................................................................................................ 35

    2) Remuneration Policy and Structure for Executive and Non-Executive Directors ................... 35

    3) Aggregate Remuneration .................................................................................................... 36

    4) Stock Rights, Options and Warrants .................................................................................... 37

    5) Remuneration of Management ........................................................................................... 37

    E. BOARD COMMITTEES ................................................................................................... 37

    1) Number of Members, Functions and Responsibilities .......................................................... 37

    2) Committee Members .......................................................................................................... 44

    3) Changes in Committee Members ........................................................................................ 45

    4) Work Done and Issues Addressed ....................................................................................... 45

    5) Committee Program ........................................................................................................... 46

    F. RISK MANAGEMENT SYSTEM........................................................................................ 46

    1) Overall risk management philosophy of the company. ........................................................ 46

    2) Risk Policy ........................................................................................................................... 47

    3) Control System Set Up ........................................................................................................ 47

    G. INTERNAL AUDIT AND CONTROL .................................................................................. 48

  • Macay Holdings, Inc. 2015 Annual Corporate Governance Report 4

    1) Internal Control System ...................................................................................................... 49

    2) Internal Audit ...................................................................................................................... 50

    H. ROLE OF STAKEHOLDERS .............................................................................................. 52

    1) Policies and Activities .......................................................................................................... 52

    2) Corporate Social Responsibility ........................................................................................... 53

    3) Performance-Enhancing Mechanisms for Employee Participation ....................................... 53

    4) Procedures for Handling Employee Complaint .................................................................... 54

    I. DISCLOSURE AND TRANSPARENCY ............................................................................... 54

    1) Ownership Structure ........................................................................................................... 54

    2) Annual Report Disclosures .................................................................................................. 54

    3) External Auditor’s Fee ......................................................................................................... 55

    4) Medium of Communication ................................................................................................ 55

    5) Date of Release of Audited Financial: April 15, 2015 ............................................................ 55

    6) Company Website ............................................................................................................... 55

    7) Disclosure of RPT ................................................................................................................ 56

    J. RIGHTS OF STOCKHOLDERS .......................................................................................... 56

    1) Right to participate effectively in and vote in Annual/Special Stockholders’ Meetings ......... 56

    2) Treatment of Minority Stockholders ................................................................................... 68

    K. INVESTOR RELATIONS PROGRAM ................................................................................. 68

    L. CORPORATE SOCIAL RESPONSIBILITY INITIATIVES........................................................ 69

    M. BOARD, DIRECTOR, COMMITTEE AND CEO APPRAISAL ................................................ 70

    N. INTERNAL BREACHES AND SANCTIONS...............................