According to Kasturi Nathan, KPMG in Malaysia’s Head of Governance & Sustainability, and Krishman Varges, Associate Director of Governance & Sustainability for KPMG in Malaysia, it is only natural to expect the clarion call for greater governance of GLCs to amplify by the day given the clout of GLCs and their profound influence on the economy.
In a recent thought piece, they expounded on the common governance issues that beleaguer GLCs by unpacking them into three key common themes: over-boarding of directors; the golden share conundrum; and misaligned remuneration packages of directors.
In drawing lessons and charting priorities for GLCs, it is imperative to appreciate the specific and complex legal, institutional, economic and social context that are enveloping GLCs and therefore, governance enhancements must be tailored to these circumstances. Alongside a system of checks and balances, directors and management must at all times possess the moral courage to exemplify accountability and act in the best interest of nation development.
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This commentary is published in "Focus Malaysia".