ADM303: CORPORATE GOVERNANCE I

REVISION QUESTIONS

1. Clarify how institutional investors become asset owners and asset managers with equity
holdings in corporations listed on Bursa Malaysia.
2. Describe a potential agency problem that an institutional investor may encounter.
3. Describe situations where the shareholders and the stakeholders can have similar interests.
4. Describe the diversity of the board of directors.
5. Describe types of stakeholder interests and ways a company may embrace them.
6. Determine factors influencing the executive director’s remuneration debate.
7. Discuss arguments for the high-board remuneration level.
8. Discuss practices that should be done by the company to realise the Principle C’s intended
outcome.
9. Discuss the importance of transparency in directors’ remuneration disclosure.
10. Distinguish the mechanisms an institutional investor may exercise its power.
11. Distinguish types of stakeholders.
12. Evaluate the fundamental stewardship duties of institutional investors with a guide for each.
13. Explain how a company may set the director’s basic salary.
14. Explain the board’s evaluation process.
15. Explain ways an institutional investor may protect their interests through good governance.
16. Identify elements of the salary package.
17. Identify factors that lead to reducing the independence of non-executive directors.
18. Identify how institutional investors’ policy can address institutional investors’ responsibility.
19. Identify the responsibilities of the Chairman and the CEO.
20. Illustrate how a company may benefit from board diversity.
21. Illustrate how the local community may affect the company in the long run.
22. Illustrate methods a listed company can make objectively in the company’s best interests,
considering diverse perspectives and insights according to Principle A, MCCG 2021.
23. Justify the importance of executive director remuneration disclosure.
24. List the roles of institutional investors in corporate governance.
25. Recommend activities that a company can conduct according to Intended Outcome 12.0 of
Principle C of MCCG 2021.