Importance of Corporate Governance
KWAP’s Board, Investment Panel and its management recognize the importance of the principle of corporate governance in conducting the affairs of KWAP and its investee companies.
Based on the belief that investments in companies that are well managed from the corporate governance perspective will provide higher returns and lower risks in the long term, KWAP has chosen to be proactive on shareholder activism. In this context, proactive shareholder activism refers to corporate governance and issues related to the company’s responsibility for socially and environmentally related aspects of their operations.
The importance is further amplified in the present volatile economic environment where shareholder activism, vis-à-vis its impact on corporate governance will ensure only well managed investments both in terms of efficiency and adherence to strict ethical values are retained.
KWAP strongly advocates the notion that shareholder activism is not a task to be borne solely by the regulators (eg: Bursa Malaysia or Securities Commission). With the policies and regulations put into effect by the regulators, in turn, it is the shareholders who are in the best position to enforce their rights.