Creative 2015 Annual Report Download - page 11

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CREATIVE TECHNOLOGY LTD AND ITS SUBSIDIARIES
improprieties relating to accounting, nancial 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 Company outsourced its internal audit function to Boardroom Business Solutions Pte. Ltd. The internal audit team performs
risk assessment and conducts review to assess the adequacy and effectiveness of the Group’s internal controls. The internal auditors
have unrestricted access to the AC on internal audit matters. The AC reviews and endorses the internal audit plan and the internal
audit reports which include the audit ndings and recommendations of the internal auditors and management’s responses to such
ndings. Any material non-compliance or failures in the internal audit function and the recommendations for improvements are
reported to the AC. The AC also reviews the progress of any corrective, preventive or improvement measures as required.
For the nancial year ended 30 June 2015, the AC is satised that the internal audit function is adequate and effective.
PRINCIPLE 14: SHAREHOLDER RIGHTS
The Group is committed to treat all shareholders fairly and equitably. The Group recognizes, protects and facilitates the exercise
of shareholders’ rights, and continually reviews and updates such governance arrangements.
The Company ensures that there is adequate, timely and sufcient information pertaining to changes in the Group’s business which
could be likely to materially affect the share price or value.
The Company ensures that shareholders have the opportunity to participate effectively and vote at the general meetings. Shareholders
are also informed of the rules including voting procedures that govern the general meetings.
PRINCIPLE 15: COMMUNICATION WITH SHAREHOLDERS
The Company announces its quarterly and full year results within the regulatory periods. 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 nancial results as disclosed by the Company on SGXNET. From time to
time, the Company holds briengs with analysts and the media to coincide with the release of the Group’s results. Shareholders
may also seek clarication on investor related issues by email provided in the Company’s website at www.creative.com.
The Company pays an annual dividend, taking into consideration the Company’s nancial performance, present cash position,
projected cash ow generated from operations and projected capital requirements. This is provided that the amount of dividend
declared does not exceed the Company’s retained earnings.
PRINCIPLE 16: 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 ofcers. 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
nancial statements for each of the rst three quarters of its nancial year and one month before the announcement of the Group’s
full year nancial statements.