KIM HENG OFFSHORE & MARINE HOLDINGS LIMITED
ANNUAL REPORT 2014
43
CORPORATE
GOVERNANCE REPORT
Conduct of Shareholder Meetings
Principle 16: Companies should encourage greater shareholder participation at general meetings
of shareholders, and allow shareholders the opportunity to communicate their views
on various matters affecting the company.
The Group recognises the importance of maintaining transparency and accountability to its shareholders.
The Board ensures that all the Company’s shareholders are treated equitably and the rights of all investors,
including non-controlling shareholders are protected. In line with the continuing disclosure obligations of
the Company pursuant to the Catalist Rules and the Companies Act (Chapter 50) of Singapore, the Group
is committed to providing shareholders with adequate, timely and relevant information pertaining to the
Group’s business developments, financial performance and other factors which could have a material impact
on the Company’s share price. The Company communicates with shareholders and the investing community
through the timely release of announcements via SGXNET. Financial results of the Group will be released
within 45 days from the respective quarter ended and 60 days from the full financial year ended. In addition,
the Annual Report 2014 is distributed to shareholders at least 14 days before the AGM to be held on 29
April 2015.
The Board embraces openness and transparency in the conduct of the Group’s affairs, whilst safeguarding
its commercial interests. The Company does not practice selective disclosure and price sensitive information
is publicly disclosed on an immediate basis where required under the Catalist Rules. Material information on
the Group has been released to the public through the Company’s announcements via the SGXNET.
The Group strongly encourages shareholders’ participation during the AGM which will be held in Singapore.
Shareholders are able to proactively engage the Board and the Management on the Group’s business
activities, financial performance and other business related matters through dialogue sessions. The
Group believes in regular, effective and fair communication with shareholders and is committed to hearing
shareholders’ views and addressing their concerns.
As at the date of this Report, the Company does not have a fixed dividend policy. In considering the form,
frequency and amount of dividends that the Board may recommend or declare in respect of any particular
year or period, the Board takes into account various factors including:
The level of the Group’s cash and retained earnings.
The Group’s actual and projected financial performance.
The Group’s projected levels of capital expenditure and other investment plans.
The Group’s working capital requirements and general financing condition.
Any payouts of dividend are clearly communicated to shareholders in public announcements and via
announcements on SGXNET when the Company discloses its financial results. The Company has proposed
a one-tier tax exempt final dividend of 0.5 Singapore cents per ordinary share in respect of FY2014, subject
to shareholders’ approval at the forthcoming AGM.
The Group supports and encourages active shareholders’ participation at general meetings. The Board
believes that general meetings serve as an opportune forum for shareholders to meet the Board and
key management personnel, and to interact with them. Information on general meetings is disseminated
through notices in the annual reports or circulars sent to all shareholders. The notices are also released via
SGXNET and published in local newspapers, as well as posted on the Company’s website.
