Creative 2009 Annual Report Download - page 9

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9
CREATIVE฀TECHNOLOGY฀LTD฀AND฀ITS฀SUBSIDIARIES
PRINCIPLE 12: INTERNAL CONTROLS
The Board acknowledges that it is responsible for the overall internal control framework, but recognises that no cost effective
internal control system will preclude all errors and irregularities, as such a system is designed to manage rather than eliminate
the risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance against material
misstatement or loss.
The AC, on behalf of the Board, has reviewed the effectiveness of the internal control system put in place by the Company and is
satisfied that there are adequate internal controls in the Company. The Directors regularly review the effectiveness of the internal
controls, including operational controls.
The Company has in place a whistle-blowing procedure where staff of the Group can raise in confidence concerns on possible
improprieties relating to accounting, financial reporting, internal controls and auditing matters. Under these procedures, arrangements
are in place for independent investigation of such matters raised and for appropriate follow up action to be taken.
PRINCIPLE 13: INTERNAL AUDIT
The Internal Audit (“IA”) team is independent of the activities that it audits. The Head of IA’s primary reporting line is to the
Chairman of the AC with an administrative line of reporting to the Chief Financial Officer of the Company. The AC reviews
the annual IA plans and resources to ensure that the IA has the necessary resources to adequately perform its functions. The AC
also reviews the IA’s reports and activities on a quarterly basis.
PRINCIPLE 14: COMMUNICATION WITH SHAREHOLDERS
The Company announces its quarterly and full year results within the regulatory period. Material and price-sensitive information
is publicly released via SGXNET on a timely basis. All shareholders of the Company receive the annual report of the Company
and the notice of the Annual General Meeting, for which a notice is also advertised in the press and released via SGXNET.
Shareholders and investors can access information on the Company at its website at www.creative.com which provides, inter alia,
corporate announcements, press releases and the latest financial results as disclosed by the Company on SGXNET. From time to
time, the Company holds briefings with analysts and the media to coincide with the release of the Group’s results.
PRINCIPLE 15: GREATER SHAREHOLDER PARTICIPATION
At general meetings of the Company, shareholders are given the opportunity to communicate their views and ask the Directors and
management questions regarding matters affecting the Company. The Board, external auditors and senior management are normally
available at the Annual General Meeting to respond to, and to assist the Directors in responding to shareholders’ questions.
In accordance with the Articles of Association of the Company, shareholders may appoint not more than two proxies to attend
and vote on their behalf. A proxy need not be a member of the Company.
DEALINGS IN SECURITIES
In line with the recommended practices on dealings in securities set out in the SGX-ST Listing Rules, the Company provides
internal guidance with regards to dealing in the Company’s securities by its Directors and officers. These guidelines prohibit
dealing in the Company’s securities on short-term considerations and while in possession of unpublished material price-sensitive
information in relation to such securities, and during the period commencing two weeks before the announcement of Group’s
financial statements for each of the first three quarters of its financial year and one month before the announcement of the Group’s
full year financial statements.
AR09 pg1-64_Final.indd 9 10/2/2009 10:38:06 AM