Board Performance
Principle 5: There should be a formal annual assessment of the effectiveness of the
Board as a whole and its board committees and the contribution by each
director to the effectiveness of the Board.
The NC assesses the performance and effectiveness of the Board as a whole as well as the
contribution of individual directors to the effectiveness of the entire Board. The assessment
process involves both a qualitative and quantitative assessment. The qualitative assessment
is undertaken by the independent directors in the form of a discussion between themselves
only. The quantitative assessment involves scoring a pre-agreed weighted score card against
various criteria. This process ensures that the overall evaluation is undertaken against a set of
objective, quantitative and qualitative performance criteria that had been proposed by the NC
and approved by the Board.
During the financial year under review, a Board Evaluation Questionnaire is circulated and
completed collectively by members of NC to assess the overall effectiveness of the Board.
The performance criteria includes the evaluation of 1) the size and composition of the Board,
2) the Board’s access to information, 3) the Board process, 4) the Board’s accountability and
performance in relation to discharging its principal functions and responsibilities and 5) the
Board’s standards of conduct. The collective evaluation is then presented to the Board to
highlight areas of strength and weakness and the Board acts on the evaluation to ensure
continuous improvement of the Board. Based on the overall assessment for FY2015, the Board
was effective as a whole.
Financial targets such as return on assets, return-on-equity and the Company’s share price
performance vis-à-vis the Singapore Straits Times Index and a benchmark index of its industry
peers are also considered. The Board, however, notes that the financial indicators set out in the
Code provide only a snapshot of the Company’s performance, and do not fully reflect on-going
risk or measure the sustainable long-term wealth and value creation of the Company.
Individual director’s performance is evaluated annually and informally by the NC and the
Chairman. In assessing the individual director’s performance, the NC takes into consideration
the individual director’s industry knowledge, functional expertise, contribution, attendance at
meetings of the Board or Board Committees and workload requirements.
To focus directors and in particular the independent director’s mind on adding value to
shareholders, the independent directors are encouraged to own shares in the Company.
Currently, only one of the independent directors own shares in the Company.
CORPORATE GOVERNANCE
REPORT
ASL Marine Holdings Ltd. /Annual Report 2015
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