Page 132 - Bank-Muamalat-AR2020

130 BANK MUAMALAT MALAYSIA BERHAD About Us Our Leadership Our Strategy
About Us
ANNUAL REPORT FY2020

BOARD LEADERSHIP AND
EFFECTIVENESS

BOARD CHARTER AND • Adoption/changes to the Constitution or terms of reference
BOARD RESPONSIBILITIES of Board/Board Committees.
The Board Charter formalises the various roles and • Decision in relation to delegation of authority.

responsibilities of the Board, Board Committees and

individual Director of the Bank with the aim of streamlining • Decision on appointments and removal of any member
and enhancing corporate governance practices towards of the Board, or the company secretary, or the senior
transparency, accountability and integrity in boardroom management, a director from the Chairmanship of the
activities. The Board Charter can be found on our website Board and external auditors or other professional advisors.
at https://www.muamalat.com.my/Board-Directors/Board- • Significant and/or connected party contracts and

Charter-v2.0.pdf transactions or contract that involves conflict of Director’s
Specific responsibilities of the Board are delegated to the personal interest.
Board Committees. The Board Committees operating with • Disclosure on financial information/reports for publication

their respective chairpersons and members to facilitate as well as presentation to Shareholders or disclosure on
the Board’s efficiencies in getting the specific attention, material information that may affect the image of the Bank.
scope and in accordance with clearly defined Terms of
Reference (“TOR”) of each of the Committees. The Board • Policy governing the Board Meetings.

as a whole retains collective responsibility for decisions on

recommendations made by Committees. • Payment by the Bank arising out of legal dispute/legal
settlement exceeding RM100,000.
ROLES AND RESPONSIBILITIES OF THE
CHAIRMAN AND CEO Further details on Board Reserved Matters can be found in
the Board Charter.
The roles of the Chairman and CEO are clearly separated,
and the Chairman was not previously a CEO of the Bank. BOARD EFFECTIVENESS EVALUATION
The Chairman is responsible for providing significant
leadership to the Board to facilitate the Board in carrying The Board Effectiveness Evaluation (“BEE”) is carried out
out its responsibilities effectively while the CEO, is primarily annually as required by BNM Policy Document on Corporate
responsible for the management of day-to-day business Governance (“BNM PD on CG”) and recommended by
operations in line with the strategy and key performance Malaysian Code on Corporate Governance (“MCCG”) 2017.
indicators set by the Board. The Chairman of BNRC oversaw the overall evaluation
process while the responses may be reviewed and analysed
The detailed roles and responsibilities of the Chairman and by the BNRC, before the assessment results tabled and
CEO can be found in the Board Charter.
communicated to the Board.
BOARD RESERVED MATTERS In line with the recommendation in the BNM PD on CG,
the Board had appointed external independent third party to
The following summarises the list of Matters Reserved for the conduct the BEE for the year 2020. As required by the BNM
Board’s deliberation and decision: PD on Shariah Governance, the 2020 BEE has also included
assessment on Shariah Committee members.

• Strategic decisions which are, or may be significant, in
terms of future profitability of the Bank.

• Decisions on significant/material matters on capital and
finance.