Cap. 10:31 PuBLic EN·nnEs CoRPORATE GovERNANCE No, 4/2018 (b) (c) the ovvnership and voting structure of the entity; and any material Iisk factors, and measures taken to manage such risks; and (d) any financial assistance, including guarantees, received from the State and commitments made on behalf of the entity; and any material transactions with related entities. (e) 28. Disclosure of financial infonnation should be made in accordance with generally accepted accounting practice. PARTY REsPONSIBILrriEs op BoARDS OF Pt:nuc b'\TITIES 29. The boards of public entities should have the necessary authority, competence and objectivity to carry out their functions of strategic guidance and monitming of management. They should act with integrity and be held accountable for their actions. 30. The boards of public entities should be assigned a clear mandate and ultimate responsibility for their entities' peliormance. The boards should be fully accountable to the Government and other shareholders, act in the best interest of their entities, and treat all shareholders equitably. 31. The boards of public entities should carry out their functions of monitoring of management and strategic guidance, subject to the objectives set by the Government. They should retain full and effective control of their entities and its senior staiT members. In pa1ticular, they should have the pmver to appoint and remove the chief executive officers and other senior members of their entities' staff. 32. The boards of public entities should establish e1Tective systems of succession planning for senior management posts. 33. All board members should ensure that they have unrestricted access to accurate, relevant and timely information concerning their public entity and act on a fully informed basis. To that end, the board should establish procedures for the rapid transfer of information from the lowest to the highest levels within the entity. 34. The boards of public entities should ensure that their entities' operations are canied out so as to minimise any conflict between the entities, on the one hand, and the Government and other shareholders on the other. 35. The boards of public entities should be composed so that they can exercise objective and independent judgement. Good practice calls tor the Chair of the board to be separate from the chief executive officer. 36. If employee representation on the board is mandated by an entity's enabling instrument, mechanisms should be developed to guarantee that this representation is exercised effectively and contributes to the enhancement of the board skills, infonnation and independence. 37. The boards of public entities should cany out an annual evaluation to appraise their performance, both collectively and for individual members. PART VI CoMMITTEEs OF BoARDS OF PuBLic ENTITIES 38. When necessary, the boards of public entities should set up specialised committees to support the full board in performing its functions, particularly in respect to risk management and, as provided in paragraphs 39 and 40, audit and remuneration. 39. The board of a public entity should est::'lblish an audit committee that has at least two independent board members. The audit cormnittee should be responsible for improving management reporting by overseeing audit functions, internal controls and the financial reporting process. 163

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