CORPORATE

BOARD CHARTER

Appendix III

TERMS OF REFERENCE FOR NOMINATION COMMITTEE


1. Objectives

The Nomination Committee (the “Committee”) of Eco World International Berhad (the “Company”) was formed by the Board of Directors of the Company. Its primary function, in line with the Malaysian Code on Corporate Governance 2012, is to assist the Board in the following areas:

  • Proposing new nominees for the Board of the Company and/or its subsidiaries (the “Group”) - the actual decision as to who shall be nominated shall be the responsibility of the full Board after considering the recommendations of the Committee;
  • Assessing the effectiveness of Directors of the Group on an ongoing basis;
  • Reviewing the effectiveness of the Chief Executive Officer (“CEO”);
  • Assessing the size and composition of the Board of Directors; and
  • Reviewing the Board’s corporate governance principles of the Group.
2. Composition

2.1The membership of the Committee shall comprise exclusively Non-Executive Directors, a majority of whom are independent and number at least three (3) in total. Membership of the Committee shall be disclosed in the annual report of the Company.

2.2The Chairman of the Committee shall be an Independent Non-Executive Director appointed by the Board.

2.3The members will be appointed by the Board and will remain members until there is a change.

3. Quorum and Meeting Procedures

The Committee shall meet at least once (1) a year. More meetings may be conducted if the need arises.

The quorum for a meeting of the Committee shall be two (2) members, present in person, a majority of whom must be Independent Directors. In the absence of the Chairman, the members present shall elect a Chairman for the meeting from amongst the members present.

The Company Secretary or his/her representative/other appropriate senior officer shall act as Secretary of the Committee (the “Secretary”). The Secretary, in conjunction with the Chairman, shall draw up an agenda, which shall be circulated together with the relevant support papers, at least one (1) week prior to each meeting to the members of the Committee.

The Secretary shall also be in attendance at each Committee meeting and responsible for keeping the minutes of meetings of the Committee and circulating them to Committee members and to the other members of the Board.

The CEO may be invited to attend meetings to discuss the performance of Executive Directors and make proposals as necessary. Executive Directors should play no part in decisions on their own remuneration.

The Chairman shall submit an annual report to the Board, summarising the Committee’s activities in the discharge of its duties during the financial year and the related significant results and findings thereof, including details of relevant training attended by each Committee member.

The Committee members may participate in a meeting by means of conference telephone, conference videophone or any similar or other communications equipment by means of which all persons participating in the meeting can hear each other. Such participation in a meeting shall constitute presence in person at such meeting.

A resolution in writing, signed by all the members of the Committee, shall be as effectual as if it has been passed at a meeting of the Committee duly convened and held. Any such resolution may consist of several documents in like form, each signed by one or more committee members.

4. Advisers

The Committee is authorised by the Board to seek appropriate professional advice inside and outside the Group at the expense of the Company as and when it considers this necessary in the discharge of its responsibilities.

5. Responsibilities and Duties

In fulfilling its primary objectives, the Committee shall undertake the following responsibilities and duties:

5.1having evaluated the balance of skills, knowledge and experience on the Board, and hence defined the role and capabilities required for a particular appointment, be responsible for identifying and nominating, for the approval of the Board, candidates to fill Board vacancies as and when they arise.

5.1.1In making the recommendations, the Committee will also consider candidates proposed by the CEO, and within the bounds of practicability, by any other senior executive, Director or shareholder. In making its recommendations, the Committee shall assess and consider the following attributes or factors:

  1. skills, knowledge, expertise and experience;
  2. professionalism;
  3. commitment (including time commitment) to effectively discharge his/her role as a Director;
  4. contribution and performance;
  5. background, character, integrity, and competence;
  6. in the case of candidates for the position of Independent Non-Executive Directors, the Committee shall also evaluate the candidates’ ability to discharge such responsibilities/functions as are expected from Independent Non-executive Directors; and
  7. Boardroom diversity including gender, age and ethnicity diversity.

5.2make recommendations to the Board for the appointment of the Chairman, CEO and Senior Independent Director, including an assessment of the time commitment expected and recognising the need for availability in the event of crises.

5.3review and define orientation and induction plans for new directors.

5.4develop, maintain and review the criteria to be used in the recruitment process and annual assessment of Directors. The Board nomination and election process as well as the criteria used in the selection process and the assessment undertaken in respect of its Board, committees and individual Director should be disclosed in the Annual Report.

5.5recommend to the Board, Directors to fill the seats on Board Committees.

5.6assess the training needs of each Director, review the fulfilment of such training, and disclose details in the Annual Report as appropriate.

5.7review the Board’s succession plans.

5.8review the Directors’ continuing education programmes.

5.9review and make recommendations to the Board on Succession Planning Policy for management.

5.10review annually:

5.10.1the required mix of skills, experience and other qualities of the Board, including core competencies which Non-Executive Directors should bring to the Board. This activity shall be disclosed in the Annual Report of the Company;

5.10.2the effectiveness of the Board as a whole, the Committees of the Board and the contribution of each individual Director including his time commitment, character, experience and integrity. All assessments and evaluations carried out by the Committee in the discharge of all its functions shall be properly documented;

5.10.3the term of office and performance of the Audit Committee and each of its members to determine whether they have carried out their duties in accordance with their terms of reference.

5.10.4the character, experience, integrity and competence of Directors, chief executive and chief financial officer and to ensure they have time to discharge their respective roles; and

5.10.5the independence of its independent directors.

5.11establish a set of quantitative and qualitative performance criteria to evaluate the performance of each member of the Board.

5.12recommend the re-appointment of any non-executive director at the conclusion of his or her specified term of office, re-election of any director under the retirement by rotation provisions in the Company’s Articles of Association.

5.13consider the size and balance of the Board with a view to determine the impact of the number upon the Board’s effectiveness and recommend it to the Board.

5.14recommend to the Board the Company’s gender composition of the Board.

5.15review, at least once a year, its own performance, constitution and Terms of Reference to ensure it is operating at maximum effectiveness and recommend any changes it considers necessary to the Board for approval.

6. Procedures

The Board follows formal and transparent procedures when appointing directors, as follows:

6.1The Committee shall prepare descriptions of the director characteristics the Board is looking for in a new appointment.

6.2The Committee will seek professional advice as and when it considers necessary to identify a short-list of suitable candidates and a list of nominations for candidates proposed by the CEO, and within the bounds of practicability, by any other senior executive, director or shareholder for considerations.

6.3All the candidates are interviewed by at least two members of the Committee whose evaluations will be circulated to all the members of Nomination Committee. A target appointment date is then fixed.

6.4The Committee will then have to make a majority decision in recommending the appointment to the Board.

6.5The Board will then decide on the best candidate by ballot or majority decision and a Board resolution will be passed to appoint the candidate.

6.6The written consent of the nominees to act if elected shall be secured.

The Committee shall regulate its own procedure to be followed in the discharge of its duties and responsibilities set out in section 5 above. The regulation and implementation of such procedure shall, as far as circumstances permit be in keeping with the principles and requirements of the Malaysian Code on Corporate Governance.

7. Succession Planning for Board

The Committee shall:

7.1keep under review the leadership needs of the Company, both executive and non-executive, with a view to ensuring the continued ability of the organisation to compete effectively in the marketplace;

7.2give full consideration to succession planning in the course of its work, taking into account the challenges and opportunities facing the Company, and the skills and expertise needed on the Board in future;

7.3make recommendations to the Board concerning the succession plans for Executive Directors and in particular for the CEO;

7.4make recommendations to the Board concerning the re-appointment of any non-executive director at the conclusion of his or her specified term of office, re-election of any director under the retirement by rotation provisions in the Company’s Articles of Association, continuation (or not) in service of any director who has reached the age 70, if any;

7.5make any necessary recommendations to the Board concerning the continuation in office, suspension or termination of service of any director (subject, in the case of Company employees to the provisions of their service contracts, if any); and

7.6make recommendations to the Board concerning the continuation (or not) in service of any Independent Director who has served consecutively or cumulatively more than 9 years.

8. Revision of Terms of Reference

Any revision or amendment to this Terms of Reference, as proposed by the Committee or any third party, shall first be presented to the Board for its approval. Upon the Board’s approval, the said revision or amendment shall form part of this Terms of Reference and this Terms of Reference shall be considered duly revised or amended.




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