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Corporate Governance

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Corporate Governance
TITLE : CORPORATE GOVERNANCE
COMPANY NAME : AIR ASIA

GROUP MEMBER

AIRASIA BERHAD

COMPANY PROFILE


Established in 1993 and commence operations on
18 November 1996.



Established with the dream of making flying possible for everyone



Originally founded by a government-owned conglomerate, DRB-COM.



Bought by former Time Warner executive, Tony
Fernandes 's company Tune Air Sdn Bhd on 02
Dec 2001

COMPANY PROFILE –Cont‘
Malaysian Low- cost airline
 Largest low fare, no frills air line and a pioneer of low cost travel in Asia
 Operates scheduled domestic and international flights to over 400 destinations spanning 25 countries 

AIRASIA GOVERNANCE BOARD
BACKGROUND & DUTIES


The Board of Directors consist of 8 members :
1 Non Executive Chairman
 2 Executive Directors
 5 Non Executive Directors – independent & neutral




Ensure the Group meets the responsibility to the stakeholders and serve to the community as well



Appointment of Board and Senior Management staff



Ensure a sustainable & adequate financial resources



Review progress and trends in relation to Flight Safety &
Airworthiness

OTHER DUTIES & RESPONSIBILITIES








Govern the corporation by establishing policies and objectives
Select, appoint, support and review the performance of the CEO

Approve annual budgets
Decide the salaries and compensation of company management. DEFINITION OF CORPORATE
GOVERNANCE






Shleifer and Vishny(1997) - the ways suppliers of finance to corporations assure themselves getting return on investment.
Gillan and Starks (1998) - system of laws, rules, and factors that control operations of a company.
Jensen (2001) - Incorporating the community in which firms operate, political environment, laws and regulations, and more generally the markets in which firms are involved.

MARKETS

LAW/REGULATIONS

Board of Directors

Management
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