We believe that Board performance is ultimately reflected in the long term performance of the Group. The Board sets strategic directions and ensures competent management of the Group. The Board also ensures compliance with applicable laws. Board members have a duty to act in good faith, with due diligence and care in the best interests of the Company and its shareholders. An effective Board is able to provide firm support to Management at all times and to steer the Group in the right direction.
The financial indicators, set out in the Code as guides for the evaluation of the Board and its directors, are in our opinion more of a measurement of Management’s performance and therefore less applicable to directors. In any case, such financial indicators provide a snapshot of a company’s performance, and do not fully measure the sustainable long term wealth and value creation of the Company.
A more important consideration is that the Board, through the NC, had ensured from the outset the requisite blend of background, experience and knowledge in technology, business, finance and management skills critical to the Group’s businesses. It has from the outset ensured that each director with his special contribution brings to the Board an independent and objective perspective to enable balanced and well-considered decisions to be made.
Reviews of Board performance as appropriate are informal. Renewal or replacement of Board members do not necessarily reflect their contributions todate, but may be driven by the need to position and shape the Board in line with the medium term needs of the Company and its business.