REMUNERATION COMMITTEE - TERMS OF REFERENCE

Established on 19th July, 2005 pursuant to the Code on Corporate Governance Practices effective on 1st January, 2005.

1. MEMBERSHIP
1. The Committee shall be appointed by the Board of Directors (“Board”).
2. The majority of the members (“Members”) of the Committee shall be independent non-executive directors.
3. The Chairman of the Committee shall be appointed by the Board.

2. SECRETARY
1. The Company Secretary shall be the secretary of the Committee.
2. The Committee may from time to time appoint any other person with appropriate qualification and experience as the secretary of the Committee.

3. MEETINGS
1. The Committee shall meet at least once a year.
2. Notice of any meetings has to be given at least 14 days prior to any such meeting being held, unless all Members unanimously waive such notice.? Irrespective of the length of notice being given, attendance of a meeting by a Member shall be deemed waiver of the requisite length of notice by the Member.? Notice of any adjourned meetings is not required if adjournment is for less than 14 days.
3. The quorum of the Committee shall be any two Members.
4. Meeting could be held in person, by telephone or by other electronic means of communication.? Members may participate in a meeting by means of a conference telephone or similar communications equipment by means of which all persons participating in the meeting are capable of hearing each other.
5. Resolutions of the Committee at any meeting? shall be passed by a majority of votes of the Members present.
6. A resolution in writing signed by all the Members of the Remuneration Committee shall be as valid and effectual as if? it had been passed at a meeting of the Committee duly convened and held.
7. Minutes shall be kept by the secretary of the Committee.? Draft and final versions of minutes shall be circulated to all Members for their comment and records respectively, in both cases within a reasonable period of time after the meeting.? Such minutes shall be open for directors’ inspection.

4. ATTENDANCE AT MEETINGS
1. At the invitation of the Committee, the Chairman of the Board and/or Managing Director, external advisers and other persons may be invited to attend all or part of any meeting.
2. Only Members of the Committee are entitled to vote at the meetings.

5. ANNUAL GENERAL MEETING
1. The Chairman of the Committee or another Member of the Committee or a duly appointed delegate shall attend the Company’s Annual General Meeting and be prepared to respond to any shareholders’ questions on the Committee's activities and their responsibilities.
6. RESPONSIBILITY, POWER AND DISCRETION

The Committee shall have the following responsibilities, powers and discretion :-

1. to make recommendations to the Board on the Company's policy and structure for all remuneration of directors and senior management and on the establishment of a formal and transparent procedure for developing policy on such remuneration;
2. to have the delegated responsibility to determine the specific remuneration packages of all executive directors and senior management, including benefits in kind, pension rights and compensation payments, including any compensation payable for loss or termination of their office or appointment, and make recommendations to the Board of the remuneration of non-executive directors.? The Committee should consider factors such as salaries paid by comparable companies, time commitment and responsibilities of the directors, employment conditions elsewhere in the Group and desirability of performance-based remuneration;
3. to review and approve performance-based remuneration by reference to corporate goals and objectives resolved by the Board from time to time;
4. to review and approve the compensation payable to executive directors and senior management in connection with any loss or termination of their office or appointment to ensure that such compensation is determined in accordance with relevant contractual terms and that such compensation is otherwise fair and not excessive for the Company;
5. to review and approve compensation arrangements relating to dismissal or removal of directors for misconduct to ensure that such arrangements are determined in accordance with relevant contractual terms and that any compensation payment is otherwise reasonable and appropriate;
6. to ensure that no director or any of his associates is involved in deciding his own remuneration; and
7. to advise shareholders on how to vote with respect to any service contracts of directors that require shareholders’ approval under the Listing Rules.

 

7. REPORTING RESPONSIBILITIES
1. The Committee shall report to the Board after each meeting.
8. AUTHORITY
1. The Committee shall consult the Chairman of the Board and/or Managing Director about their proposals relating to the remuneration of other executive directors and senior management.
2. The Committee is authorised by the Board to seek any remuneration related information it requires from senior management of the Company in order to perform its duties.
3. The Committee is authorised by the Board where necessary to have access to professional advice.? Arrangement to seek professional advice could be made through the Company Secretary.
4. The Committee shall be provided with sufficient resources to discharge its duties.

 

9. PUBLICATION OF THE TERMS OF REFERENCE
1. The terms of reference will be posted on the website of the Company.? A copy of the terms of reference will be made available to any person without charge upon request.

Note: “Senior management” should refer to the same category of persons as referred to in the Company’s annual report and is required to be disclosed under paragraph 12 of Appendix 16 to the Listing Rules.

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