BUILDING ON OUR EXTENSIVE NETWORK
Communication with Shareholders
Principle 14: Shareholders’ Rights
Principle 15: Communication with Shareholders
Principle 16: Conduct of Shareholders’ Meetings
The Company does not practise selective disclosure. Shareholders are kept informed of the developments in the
Group’s businesses and operations through announcements via SGXnet as well as through the annual report.
Announcements are made as soon as possible to ensure timely dissemination of the information to shareholders
and the public. Results and the annual reports are announced or issued within the mandatory periods. To further
enhance its communication with investors, the Company’s website
allows the public to
access information on the Group directly.
Shareholders are encouraged to attend the Company’s general meetings to ensure a greater level of
shareholder participation and for them to be kept up to date on the strategies and goals of the Group. The
Board and Management are present at these meetings to address any question that shareholders may
have concerning the Company. The External Auditor is also present to assist the Board in answering relevant
shareholders’ queries.
To facilitate participation by shareholders, the Company’s Articles allow shareholders to attend and vote at
general meetings of the Company by proxies. Proxy forms can be sent to the Company by mail. At the AGM,
each distinct issue is voted via separate resolutions.
For greater transparency, the Company has implemented poll voting since 2012. This entails shareholders being
invited to vote on each resolution by poll thereby allowing all shareholders present or represented at the meeting
to vote on a one share, one vote basis. The voting results of all votes cast for, or against, each resolution is then
announced at the meeting. The Company will continue to conduct the voting by poll at the forthcoming AGM.
As authentication of shareholder identity information and other related security issues still remain a concern, the
Company has decided, for the time being, not to implement voting in absentia by mail, facsimile or email.
Dividend Policy
While the Company has not formally instituted a dividend policy, it has a good track record of paying annual
dividends to shareholders. In proposing any dividend payout and/or determining the form, frequency and/or
the amount of such dividend payout, the Board will take into account,
inter alia
, the Group’s financial position,
retained earnings, results of operation and cash flow, the Group’s expected working capital requirements,
the Group’s expected capital expenditure and future expansion and investment plans and other funding
requirements, general economic conditions and other internal or external factors that may have an impact on
the business or financial performance and position of the Group.
The Board endeavours to maintain a balance between meeting shareholders’ expectations and prudent capital
management with a sustainable dividend payout.
Internal Code on Dealings With Securities
The Group has adopted an internal code which prohibits the Company, directors and employees of the Group
from dealings in securities of the Company while in possession of price-sensitive information, and during the
period commencing two weeks and one month before the announcement of the quarterly and full year results
respectively, and ending on the date of announcement; In addition, directors and employees are expected to
observe insider trading laws at all times even when dealing in securities within the permitted period.
It also discourages dealings on short-term considerations. Directors and employees are required to report
securities dealings to the Company Secretary who will assist to make the necessary announcements.
Corporate Governance
(Cont’d)
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STAMFORD TYRES CORPORATION LIMITED
