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    Malaysian Code On Corporate Governance - Practice 8.1: The Chairman of The Audit Committee Is Not The Chairman of The Board

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    GWB has expanded its herbal products trading business through acquisitions of smaller companies, incurring transaction costs to deal with external suppliers and advisers. Malaysian corporate governance codes require companies to establish independent audit committees for oversight of internal controls, governance, and risk management, with separate chairs for the board and audit committee, requirements which GWB has not satisfied based on the information given.

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    Malaysian Code On Corporate Governance - Practice 8.1: The Chairman of The Audit Committee Is Not The Chairman of The Board

    Uploaded by

    Baker Adhesive
    4 views1 page
    GWB has expanded its herbal products trading business through acquisitions of smaller companies, incurring transaction costs to deal with external suppliers and advisers. Malaysian corporate governance codes require companies to establish independent audit committees for oversight of internal controls, governance, and risk management, with separate chairs for the board and audit committee, requirements which GWB has not satisfied based on the information given.

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    CGE

    Original Title

    Good Works Berhad

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    GWB has expanded its herbal products trading business through acquisitions of smaller companies, incurring transaction costs to deal with external suppliers and advisers. Malaysian corporate governance codes require companies to establish independent audit committees for oversight of internal controls, governance, and risk management, with separate chairs for the board and audit committee, requirements which GWB has not satisfied based on the information given.

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    4 views1 page

    Malaysian Code On Corporate Governance - Practice 8.1: The Chairman of The Audit Committee Is Not The Chairman of The Board

    Uploaded by

    Baker Adhesive
    GWB has expanded its herbal products trading business through acquisitions of smaller companies, incurring transaction costs to deal with external suppliers and advisers. Malaysian corporate governance codes require companies to establish independent audit committees for oversight of internal controls, governance, and risk management, with separate chairs for the board and audit committee, requirements which GWB has not satisfied based on the information given.

    Copyright:

    © All Rights Reserved
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    of 1

    1.

    Good Works Berhad (GWB) has expanded their business through acquisition of smaller
    companies that also engage in trading of herbal products. In this acquisition involve the
    transaction cost theory as GWB will incur costs to deal with external suppliers such s
    underwriter, issue traders and analyze traders. GWB should try to lower the transaction
    costs when resources were exchanged with the environment outside the company.

    2. According to Malaysian Code on Corporate Governance, a company should organize an


    independent audit committee that responsible for their internal control, governance
    and construct an effective risk management. The chairman of the board and the
    chairman of audit committee must be held by different person. 1 From the scenario,
    GWB did not have an audit committee and therefore did not satisfy the code’s
    requirement. If it does, the role of Audit Committee is not well-established.

    1
    Malaysian Code on Corporate Governance – Practice 8.1 : The Chairman of the Audit Committee is not
    the Chairman of the board.

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