Companies should engage in regular, effective and fair communication with shareholders.

Commentary

The Board is careful to observe regulations of the Singapore Exchange Securities Trading Limited governing the requirements to make appropriate announcements on a timely basis. Transparency and integrity of information is also important to the Board.

Under the recommendation of the CGAC report, the Board established the Disclosure Committee. This committee comprises three members who are all Non-Executive Directors:

Disclosure Committee 

New Disclosure Guidelines were formulated and established under the guidance of the Disclosure Committee and CAO's in-house Legal Counsel. The Disclosure Committee assists the Board in vetting all material disclosures and announcements to ensure that the information contained is factual and fair.

All corporate communications, including SGXNET announcements, must be approved by the Disclosure Committee before they are released by the Company. The Committee studies each disclosure and announcement carefully to ensure that it complies with the law and regulations, and that public announcements contain information relevant to shareholders. Upon approval by the Disclosure Committee, the disclosure or announcement is released under the supervision of CAO's Company Secretary and in-house Legal Counsel.

Apart from quarterly announcements of the Company's financial results and the Annual Report, which are sent to all shareholders within the mandated notice period, the Company releases public announcements via SGXNET to keep shareholders updated.

The Company does not practise selective disclosure of material information. Price sensitive information is first publicly released either before the Company meets with any group of journalists, investors or analysts or simultaneously with such meetings.

Under the recommendation of CGAC, separate procedures are applied to communications between substantial shareholders and the Board. Substantial shareholders can only access information through their nominees on the Board.

Companies should encourage greater shareholder participation at Annual General Meetings and allow shareholders the opportunity to communicate their views on various matters affecting the company.

Commentary

At each AGM, shareholders are encouraged to participate in the question and answer session. The Board of Directors, the external auditors and the Company Secretary are present to respond to shareholders' questions.

Where there are items of special business to be transacted at the AGM, comprehensive explanatory notes will be sent together with the notice of the AGM.

DEALINGS IN THE COMPANY'S SECURITIES

The Group adopted the Best Practices Guide that requires all employees to abstain from dealing with the Company securities prior to any significant announcement. In this regard, all employees are advised not to deal in the Company's shares for a period commencing two weeks before the announcement of the first and third quarter results and one month before the announcement of the half year and full year results. 

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