Corporate Governance
Question 1 Corporate governance has comparatively getting important in the business world. The term ‘corporate governance’ and its daily application in the financial press is a fresh appearance of the past fifteen years or so (Thomsen, 2004). The phase of growth may refer to the evolvement of the economy, corporate structure or ownership groups, every of which influence the way corporate governance will grow and be adapted within its own country surroundings (Mallin, 2010). A feature of specific significance is whether the company itself manipulates within a shareholder framework, concerning initially on the preservation or heighten of shareholder value as its major aim, or whether it takes a broader stakeholder channel, underlining the interests of various groups such as suppliers, employees, customers, providers of credit, and the local company (Morrison, Juleff, Paton, 2007). The Board member of IJM including six Non-Executive Directors and three Independent Non-Executive Directors, the Chairman is one of the Independent Non-Executive Directors. The balance between the Board and the assist of management is to assure the fair representation and effectiveness for the shareholders, also further assures issues of resources, strategy and performance are fully addresses and investigated to concerning with long term interest of shareholders, corresponding stakeholders and the community in which the Group runs its business (IJM Corporation Berhad, 2012). In contrast, the Board member of OSK including one Non-Executive Chairman, One Chief Executive Officer and four Non-Executive Directors that three of whom are Independent Directors. Similarly, The Board has established the roles and responsibilities of Chairman that is different and separate from the roles and responsibilities of Chief Executive Officer. The segregation between the roles and responsibilities of Chairman and Chief Executive Officer assures an appropriate balance of roles, responsibilities and