Annual general meetings (AGM) provide a chance for shareholders to take a look at the way boards are being governed. Shareholders in particular are intensely scrutinizing the extent of government involvement and the occupancy of politicians on boards of government-linked companies (GLCs). A common argument against having politicians on the board hinges on the premise of skill set misfit, whereby it has become a default right for a Chief Minister and State Executive Councillors to be accorded with board positions regardless of their skill fit .
According to Kasturi Nathan, Head of Governance & Sustainability of KPMG in Malaysia, and Krishman Varges, Manager, Governance & Sustainability, it would be in the best interest of the government and corporations alike to err on the side of caution as there will certainly be heightened concerns when politicians are appointed as board members. Instead, politicians can best play their role in overseeing GLCs as watchdogs and members of select committees in parliament as well as in the state legislative assembly.
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