Annual Report 2019

Corporate Governance Report 38 CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED AUDIT COMMITTEE The Audit Committee comprises all of the four Independent Non-executive Directors (five Independent Non-executive Directors before 5 June 2019). The Audit Committee meets at least twice a year. Two meetings were held in 2019. The minutes of the Audit Committee meetings were tabled at Board meetings for Directors to take note and for action by the Board where appropriate. The attendance of each member is set out as follows: Name of member Number of meetings attended in 2019 Attendance rate Lee Yip Wah Peter (Chairman of the Audit Committee) 2/2 100% Kut Ying Hay 2/2 100% Li Kwok Heem John (resigned on 5 June 2019) 1/1 100% Li Ka Fai David 2/2 100% Bong Shu Ying Francis 2/2 100% During the meetings held in 2019, the Audit Committee had performed the following work: (i) reviewed the financial reports for the year ended 31 December 2018 and for the six months ended 30 June 2019; (ii) reviewed the effectiveness of risk management and Internal control systems; (iii) reviewed the external auditor’s audit plan and engagement letter; (iv) reviewed the management letter from the external auditor in relation to the audit of the Group for the year ended 31 December 2018; (v) reviewed and recommended for approval by the Board the 2019 audit scope and fees; and (vi) reviewed the connected transactions entered into by the Group during 2018. The major roles and functions of the Audit Committee are as follows: 1. to be primarily responsible for making recommendations to the Board on the appointment, reappointment and removal of the external auditor, and to approve the remuneration and terms of engagement of the external auditor, and any questions of its resignation or dismissal; 2. t o r ev i ew and mon i t o r t he ex t e r na l aud i t o r ’ s independence and objectivity and the effectiveness of the audit process in accordance with applicable standards. The Audit Committee should discuss with the auditor the nature and scope of the audit and reporting obligations before the audit commences and ensure co- ordination where more than one audit firm is involved; 3. to develop and implement policy on engaging an external auditor to supply non-audit services. For this purpose, “external auditor” includes any entity that is under common control, ownership or management with the audit firm or any entity that a reasonable and informed third party knowing all relevant information would reasonably conclude to be part of the audit firm nationally or internationally. The Audit Committee should report to the Board, identifying and making recommendations on any matters where action or improvement is needed; 4. to monitor integrity of the Company’s financial statements and annual report and accounts, half-year report and, if prepared for publication, quarterly reports, and to review significant financial reporting judgments contained in them. In reviewing these reports before submission to the Board, the Audit Committee should focus particularly on: (i) any changes in accounting policies and practices; (ii) major judgmental areas; (iii) significant adjustments resulting from audit;