TUNG LOK RESTAURANTS (2000) LTD / Annual Report
2016
17
Corporate Governance Report
Principle 5: Board Performance
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.
5.1 Board to implement
process to assess board
performance as a whole
and its board committees
and for assessing the
contribution by each
individual director to the
effectiveness of the Board;
Assessment process should
be disclosed in the annual
report
The NC is responsible for recommending and implementing a process to assess the
performance and effectiveness of the Board as a whole and its board committees, as well
as assessing the contribution of each individual Director to the overall effectiveness of the
Board.
An assessment system and evaluation forms have been established and adopted for the
evaluation of the Board as a whole, its board committees and the individual directors
annually. The objective of the performance evaluation exercise is to uncover strengths and
challenges so that the Board and board committees are in a better position to provide the
required expertise and oversight.
Following the review, the Board is of the view that the Board and its Board Committees
operatively and each director is contributing to the overall effectiveness of the Board.
5.2 NC should decide how
the Board’s performance
may be evaluated and
propose objective
performance criteria;
Performance criteria, which
allow for comparison with
industry peers, should be
approved by Board and
address how the Board
has enhanced long term
shareholders’ value
The NC has conducted a formal assessment of the effectiveness of the Board and its board
committees for the financial year ended 31 March 2016. The performance criteria for the
Board/Board Committees evaluation are in respect of size and composition, attendance,
directors’ independence, team spirit, open line of communication, degree of constructive
discussion, quality of decision making, quality of agenda/board papers, timeliness of board
papers, assessment of performance against specific targets, standard of conduct, risk
management and internal controls etc. The NC is satisfied with the effectiveness of the Board
as a whole and its Board Committees. The Board, as a group, possesses the necessary core
competencies to direct the Company and Management to perform efficiently and effectively.
5.3 Individual evaluation
to assess directors’
effectiveness in
contributions and
commitment to the role;
Chairman should act on the
results of the performance
evaluation, and where
appropriate, propose new
members to be appointed
to the Board or seek the
resignation of directors, in
consultation with the NC
NC conducts evaluation of the performance of individual directors annually and for re-
election or re-appointment of any director. The assessment of each director’s performance
is undertaken by the NC Chairman. The criteria for assessment include but not limited to
attendance record at meetings of the Board and board committees, intensity of participation
at meetings, quality of discussions, maintenance of independence and any special
contributions. The NC, in concurrence with the NC Chairman, is satisfied that each director
is contributing to the overall effectiveness of the Board.
