Annual Report 2023

130 2023 Annual Report Transport International Holdings Limited CORPORATE GOVERNANCE REPORT Good corporate governance provides the basis for stakeholder confidence and sustainable returns for shareholders and is therefore the foundation of business success. The Board believes that maintaining good corporate governance can build a strong and healthy culture within the Group. It also strengthens management effectiveness, improves control mechanisms, enhances shareholder values, and fulfills satisfaction among shareholders and stakeholders. Board members and staff observe a set of sound policies, procedures, and rules. The governance of sustainability is integrated into our corporate governance structure throughout the Group. The Group takes into account the long-term interest of shareholders and stakeholders by balancing business development and the responsibility for the community. Corporate Governance Framework The Group’s Corporate Governance Framework (the “Framework”) is built upon principles of accountability, transparency and integrity, with the aim of identifying all the key participants in good governance, their correlation and their contribution to the application of effective governance policies and processes. The Board and Senior Management use the Framework as a performance-oriented benchmark in evaluating the achievement of the Group’s business goals. In response to changes in regulatory requirements, environmental needs, social expectations and international relations, the Group regularly reviews the Framework, updates its management policies and practices, and ensures that the same are closely followed at all levels throughout the Group. The corporate governance objectives are achieved primarily through the implementation of the following measures: Maintenance of a diverse and optimal board composition, establishment of efficient management reporting systems and retention of a professional management team to ensure that the Directors are sufficiently informed prior to making decisions in the best interests of the stakeholders; Establishment of thorough internal audit and control systems to safeguard against risks, protect the assets of the Group and ensure that its policies and management practices are executed as planned and that any irregularities, deviations, material misstatements and instances of malpractice are swiftly identified and rectified; and Establishment of transparent and effective communication channels to ensure that the Group’s affairs are brought to the attention of shareholders, customers and other stakeholders. Corporate Governance Code Compliance The Company abides by the corporate governance principles contained in the Corporate Governance Code (the “CG Code”) of the Rules Governing the Listing of Securities on the Stock Exchange (the “Listing Rules”). The CG Code sets out (a) the mandatory requirements for disclosure; and (b) the principles of good corporate governance with two levels of recommendations: (a) “Code Provisions” and (b) “Recommended Best Practices”. The Company complied with all applicable Code Provisions throughout the year ended 31 December 2023, except that three Directors of the Company were unable to attend the Annual General Meeting of the Company held on 18 May 2023 (the “2023 AGM”) as provided for in Code Provision C.1.6 owing to other engagements.