Sustainability Report 2016

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Our Company 21
4.3 Corporate Governance
The long-term success of any company rests on a
strong foundation of good corporate governance.
At Towngas, good corporate governance ensures
our operations are managed and directed in a way
that is both transparent and fair. It also secures
our credibility and ensures our stakeholders’
interests are at the heart of our operations. Our
governance structure, policies and procedures
have been established for a long time, and are
central to the Group’s business activities at all
levels and in all sectors. Please refer to our
for more information about our corporate
governance principles, practices and corporate
policies.
Within the Group, the highest governing body is
the Board of Directors (the Board). The Board
is committed to maintaining a high standard
of corporate governance, sound internal
Towngas considers risk governance among its
top priorities and is committed to establishing a
robust system of risk management and internal
control. Not only will this strengthen future
success, it will also increase our value to key
stakeholders over the long term.
Our risk management process covers all business
units in the organisation, and concerns all our
people. As an ongoing process, this has become
an intrinsic aspect of our day-to-day operations
and part of the culture at Towngas. The Board
has the overall responsibility to oversee risk
Risk Management
controls, effective risk management to enhance
transparency, accountability and integrity,
and to enable the Group to fulfil its social
responsibilities.
The Board comprises nine members: two
executive directors and seven non-executive
directors, three of whom are independent. The
Board is ultimately accountable for the Group’s
activities, strategies and financial performance.
For more details about the Board, please refer to
our . Information about its
composition, operation and committees etc can be
found in our 2016.
During the year ended 31 December 2016,
Towngas complied with all code provisions as set
out in the Corporate Governance Code contained
in Appendix 14 to the Listing Rules.
management and evaluate and determine the
nature and extent of risks it is willing to take in
a manner consistent with its strategic business
drivers.
To ensure proper risk reporting channels, the
Group Risk Management Committee (GRMC)
recommends the risks and corresponding
controls to the Executive Risk Management
Committee (ERMC), which eventually reports
to the Board for endorsement. For further
information about risk management, please refer
to our 2016.