Ethics & Governance Issues of Wing Tai Holdings
2267 words 10 pagesA) Company Information
Wing Tai Holdings Limited (Wing Tai) was incorporated in Singapore on 9 August 1963 and listed on the Singapore Exchange on 21 February 1989. Wing Tai started in Hong Kong as a garment manufacturer in the 1950’s. It later expanded its operations to Singapore and Malaysia in the early 1960’s and entered the property market in Singapore in 1978. Since then, Wing Tai became a major property player with a niche reputation for delivering premium developments with innovative design, finishes and workmanship due to its dedicated attention to detail and quality.
Wing Tai together with its regional business entities, USI Holdings Limited (Hong Kong) and DNP Holdings Bhd (Malaysia) formed the Wing Tai Asia Group.
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Disclosure on Remuneration - In Wing Tai’s annual report only gives an overview of the company’s key executives that earn above $250,000. They did not provide the names of the top 5 key executives.
ACCOUNTABILITY AND AUDIT
11. Audit Committee Wing Tai does not have a whistle-blowing policy in place.
12. Internal Controls
13. Internal Audit
14. Communication with Shareholders
To further improve Wing Tai’s corporate governance, they should take the following recommendations:
1. Internal Guidelines and Policies
As required by the code of corporate governance, Wing Tai should set out clearly in their annual reports on their internal guidelines/policies that require board approval and specify the type of material transactions that require board approval.
Even if there are no material transactions required, they should have stated in the annual report like how Eu Yan Sang (EYS), FJ Benjamins (FJB), C.K. Tang (Tangs) had done.
2. Director’s Training and Orientation Program
As required by Code of Corporate Governance, it is required for Wing Tai to state in the annual report the training and the orientation program that they have prepared for the new and existing directors on board.
They could follow how Singapore Telecommunications (SingTel) had reported in their annual report.
3. Chairman & Managing Director
Wing Tai should appoint a different managing director or Chairman for