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SUNMOON FOOD COMPANY LIMITED
ANNUAL REPORT 2015
REPORT ON
CORPORATE GOVERNANCE
INTERNAL AUDIT
PRINCIPLE 13: THE COMPANY SHOULD ESTABLISH AN EFFECTIVE INTERNAL AUDIT FUNCTION THAT IS ADEQUATELY RESOURCED
AND INDEPENDENT OF THE ACTIVITIES IT AUDITS.
The Board is responsible for maintaining a sound system of internal controls to safeguard shareholders’ interests.
The Company had appointed an internationally reputable accounting firm to perform internal audit. The ARC meets with
the internal auditors regularly to review the Company’s operations and to plan for appropriate internal audit program.
Reports are prepared by the internal auditors for review by the ARC and approval by the Board.
SHAREHOLDER RIGHTS, COMMUNICATION WITH SHAREHOLDERS, AND CONDUCT OF SHAREHOLDER MEETINGS
PRINCIPLE 14: COMPANIES SHOULD TREAT ALL SHAREHOLDERS FAIRLY AND EQUITABLY, AND SHOULD RECOGNISE, PROTECT
AND FACILITATE THE EXERCISE OF SHAREHOLDERS’ RIGHTS, AND CONTINUALLY REVIEW AND UPDATE SUCH
GOVERNANCE ARRANGEMENTS.
PRINCIPLE 15: COMPANIES SHOULD ACTIVELY ENGAGE THEIR SHAREHOLDERS AND PUT IN PLACE AN INVESTOR RELATIONS
POLICY TO PROMOTE REGULAR, EFFECTIVE AND FAIR COMMUNICATION WITH SHAREHOLDERS.
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.
In line with continuous disclosure obligations of the Company and pursuant to the SGX-ST’s Listing Manual, the Board’s
policy is that shareholders are informed of all major developments that impact the Group. And an investor relations policy
is also in place to regularly convey pertinent information to shareholders.
Information is communicated to shareholders on a timely basis. Communication is made through annual reports that are
prepared and issued to all shareholders as well as quarterly announcements, notice of annual general meetings and
extraordinary general meetings, other announcements and press releases are issued via SGXNET. The dividend information
is stated and disclosed in quarterly announcements.
In addition, shareholders are encouraged to attend the general meetings of shareholders to ensure a high level of
accountability and to stay informed of the Group’s strategy and goals. Shareholders may vote in person or in absentia by
way of proxies deposited, in person or by mail, at the registered address of the Company. Currently the Board has not
implemented any voting methods to allow shareholders to vote by way of electronic mail or facsimile. Pursuant to Article
82(1) of the Constitution of the Company, a shareholder may appoint any number of proxies to attend and vote at the
same general meeting.
