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PERENNIAL REAL ESTATE HOLDINGS LIMITED
Annual Report 2015
CORPORATE GOVERNANCE
Guideline 13.2 : Adequacy in resources and
appropriateness in the standing of the internal audit
function
Guideline 13.3 : Qualification and experience of
internal auditors
Guideline 13.4 : Internal audit standards
Guideline 13.5 : Review of the adequacy and
effectiveness of the internal audit function
The annual internal audit plans are reviewed and
approved by the ARC. EY adopts a risk-based
methodology in drawing up Perennial’s annual audit plan
(“
Audit Plan
”). The Audit Plan is planned in consultation
with, but independently of, the Management. Key
considerations for the Audit Plan include risk exposures,
operating concerns and compliance to regulations,
policies and procedures. The Audit Plan includes,
amongst others, the audit scope, objectives, and
resources to be allocated for the audits. At the beginning
of each year, the Audit Plan is submitted to the ARC for
review and approval to ensure that the Audit Plan
covered sufficiently in terms of audit scope in reviewing
the significant internal controls of Perennial. Such
significant controls comprise financial, operational,
compliance and IT controls.
All internal audit reports are submitted to the ARC for
deliberation, with copies of these reports extended to
the CEO and relevant Management for prompt
corrective actions, as recommended. At the quarterly
ARC meetings, EY also presents a summary of
findings, recommendations and updates on
management actions taken.
The internal audit function is staffed with persons with
the relevant qualifications and experience, and EY
carries out its function according to the standards set
by nationally or internationally recognised professional
bodies including the Standards for the Professional
Practice of Internal Auditing established by The
Institute of Internal Auditors.
On an annual basis, the ARC also undertakes a review
to assess the adequacy and effectiveness of the
internal audit function. For the Period, the ARC, having
reviewed the Audit Plan, internal audit reports and
quality and standard of the internal auditors’ work
performed for the Period, is satisfied with the
adequacy and effectiveness of EY being its internal
auditor. It is also satisfied that EY, as Perennial’s
internal auditor, is adequately resourced and is
independent of the activities it audits.
SHAREHOLDER RIGHTS (GUIDELINE 14)
Guideline 14.1 : Disclosure of information to
Shareholders
Perennial is committed to ensuring that the
Shareholders are sufficiently informed of Perennial’s
performance or any changes in Perennial or its
businesses which are likely to materially affect the share
price or value of the Company, by disclosing as much
relevant information as possible to the Shareholders, in
a timely, fair and transparent manner. Perennial
engages the Shareholders and the analysts, fund
managers, media and various stakeholders (together,
the “
Investment Community
”) through various
platforms including phone calls, e-mail communications
as well as publication content on Perennial’s corporate
website
). The
CEO and the Management also attended investors’
conferences and seminars which were held during the
Period, as part of the engagement with the
Shareholders and the Investment Community.
Perennial treats all its Shareholders fairly and equitably,
and does not practise selective disclosure. If in any
instance where unpublished price sensitive information
is inadvertently disclosed, they are immediately
released to the public via SGXNET and Perennial’s
corporate website.
The Board has established a CDC comprising
Mr. Chua Phuay Hee and Mr. Pua Seck Guan. With
effect from 5 February 2016, Mr. Chua Phuay Hee
stepped down from the CDC and Mr. Ooi Eng Peng
was appointed. The Board has delegated authority to
the CDC to review the promptness and adequacy of
disclosures and to approve the public release of
material information relating to Perennial.
Guideline 14.2 : Shareholders’ participation and
voting rights at general meetings
All of the Shareholders are invited to attend, participate
effectively in and vote at the general meetings of the
Shareholders. The Shareholders are informed of the
general meetings, together with the relevant rules and
voting procedures of such meetings, through notices
published in the local newspaper, reports or circulars
sent to all of the Shareholders as well as via SGXNET
and Perennial’s corporate website. These notices are
provided promptly to the Shareholders well within the
stipulated timeline.
Details and matters that require the Shareholders’
consideration and approval are also clearly
