CORPORATE GOVERNANCE REPORT Constantly valuing and complying with corporate governance of international standards and alignment with SET’s policy and the ASEAN Corporate Governance Scorecard (ASEAN CG Scorecard), IRPC has earned decent assessment scores and awards for CG practices domestically and internationally, grouped by aspect as seen below. Corporate governance 1. NACC Integrity Award 2016, an award presented by the Office of the National Anti-Corruption Commission 2. Five-emblem assessment recognition by the 2016 CGR project,under the Thai IOD for the eighth 2. SET Sustainability Award 2016 (given to selected year in a row. This year, incidentally, IOD made its listed companies) assessment more stringent in line with the ASEAN CG Scorecard 3. Thailand Sustainable Investment 2016 acclaim for of its exemplary outstanding sustainable business 3. Full (100) marks for its AGM 2016, assessed by conduct while supporting social engagement the Thai Investors Association 4. Sustainability Report Award 2016 (Outstanding) 4. Best CEO under the “IAA Award for Listed granted by SET. Companies 2015/2016” (Resources group), presented by the Investment Analysts Association Anti-corruption • CAC membership certification of Thailand’s 5. Best Investor Relations Award, presented by SET Collective Action Coalition against Corruption Private 6. Corporate Governance Asia Recognition Award Sector on April 4, 2014. IRPC gained certification of 2016: Best Investor Relations by Company, presented its policy and complete practices against fraud in the by the Corporate Governance Asia journal for the corporation as required by CAC, for which recertification third consecutive year, citing transparent information is due every three years. Today, with all documents disclosure to investors with fairness to stakeholders submitted under new regulations on December 15, and in line with corporate governance 2016, IRPC is undergoing recertification. 7. “Golden Peacock Global Award for Excellence Socio-environmental responsibility in Corporate Governance 2016”, presented by the 1. Certificate of ESG 100 Company (Resources Institute of Directors (IOD) of India for the fourth time group) for 2016, granted by Thaipat Institute for the in recognition of its outstanding corporate governance value given to Environmental Social and Governance practices. (ESG). IRPC is in the ESG100 elite group for a second consecutive year. Sustainable management 1. A third consecutive year of DJSI (Dow Jones 2. EIT-CSR Award plaque of honor, presented by Sustainability Indices) membership for the Emerging the prime minister for IRPC’s socio-environmental Market of the Oil & Gas Refining and Marketing group responsibility activities by state enterprises and for 2016 operators, reviewed by the Right and Code of Conduct Panel of the Engineering Institute of Thailand 42 SET Sustainability Awards 2016 3. Asia Responsible Entrepreneurship Award 2016 3. The Board plays a key role in defining IRPC’s (AREA Award 2016) for Social Empowerment for the vision and key strategies, policies, and plans, taking Lam Sai Yong Model Project (Sustainable Drought- into account risk factors and laying down suitable Solving), hosted by Enterprise Asia, an independent management approaches while ensuring that accounting, entity supporting business caliber development financial, and audit systems are credible 4. “Golden Peacock Global Award for Social 4. The Board plays a key role in defining an anti- Responsibility 2016”, presented by the Institute of corruption policy and key relevant mechanisms so Directors (IOD) of India. as to prevent fraud and represent IRPC’s practical guidelines, leading to a corporate culture. The Board Corporate Governance Policy steers the prevention and resolution of conflicts of To promote IRPC as a business concern marked by interest and connected transactions to ensure fair efficiency, CG, and operational excellence focusing business conduct. on optimizing benefits for the shareholders and 5. The Board must lead in ethics and observance with due regard for stakeholders as a whole while of IRPC’s CG approach remaining righteous in business conduct, free of fraud, transparent, and open to scrutiny, the Board 6. The Board may appoint suitable ad hoc committees has defined a CG policy for its Board of Directors, to support its deliberation of key matters executives, and employees to observe as practical 7. The Board must hold annual self-assessment to guidelines, detailed as follows: frame the scrutiny and improvement of its performance, 1. The Boardis committed to applying the key CG principles including a suitable third-party assessment, such as (CREATE) as guidelines for IRPC’s operation, namely: every three years. Creation of Long Term Value, Responsibility, Equitable 8. The Board sets IRPC’s Code of Conduct for itself, Treatment, Accountability, Transparency, Ethics executives, staff and employees to apply as their 2. The Board is dedicated, responsible, and practical guidelines in tandem with IRPC’s regulations independent, with clear segregation of roles between the Chairman and the President 2016 Annual Report IRPC Public Company Limited 43 9. The Board sets a policy on information disclosure • IRPC disclosed the resolution of the Board at to ensure that IRPC’s shareholders and stakeholders the Meeting No. 2/2016 on February 9, 2016, which have equal access to sufficient, reliable, and timely set the record date for Tuesday, February 23, 2016, information disclosure, both financial and non-financial, and list shareholders in accordance with Article 225 with Corporate Communications and Investors Relations of the Securities and Exchange Act by closing the providing information to the public and investors. registration book on Wednesday, February 24, 2016, for the right to attend the 2016 AGM and to receive 10. IRPC’s shareholders and stakeholders are entitled dividends. The date for the 2016 AGM was set for to fair treatment and equal access to information, as Friday April 1, 2016, starting at 09.30 hours at the well as suitable communication channels with IRPC Bangkok Convention Center, 22nd Floor, Centara 11. The Board sets a succession policy and plans Grand Hotel and Bangkok Convention Center, Central to ensure that a personnel recruitment system is in World, No. 999/99 Rama I Road, Pathumwan District, place for all key executive positions along with a Bangkok 10330. The resolutions were made public transparent and fair recruitment process. via SET’s information distribution system on the date The Board is confident that good, clear, and of the resolution. transparent CG system will enhance the trust among • IRPC posted the complete meeting notice for the shareholders, investors, and stakeholders. In 2016, the 2016 AGM with the relevant attachments and a the Board followed the CG principles in line with the proxy form to facilitate those that could not attend criteria of SET’s Corporate Governance Report of Thai by themselves, map of the meeting venue, contact Listed Companies (CGR) 2016, and the Asean CG number for any inquiries, in Thai and English on Scorecard in five major elements as follows: IRPC website: www.irpc.co.th, on March 1, 2016, or 30 days before the meeting date. Thailand Securities 1. Shareholders’ Rights Depository Co., Ltd. (TSD), mailed the AGM notice to IRPC supported, promoted and facilitated shareholders’ shareholders on March 11, 2016, or 21 days before exercise of their rights to ensure that it was completely the meeting, to allow them sufficient time to study and equally protected under the law, and information the agenda in advance. Announcement of the 2016 disclosed to shareholders is accurate, complete, AGM was published in Thai and English newspapers timely, and transparent. (Kao Hoon and Bangkok Post) for three consecutive days before the meeting date. Details of the 2016 At the 2016 AGM, shareholders exercised their rights AGM were also published in IRPC Newsletter Volume as follows: 18/2016 and mailed to the shareholders with the Before the Meeting meeting notice, meeting documents, and attachments. • IRPC gave the opportunity for one or more • Quality of Meeting Notice. IRPC boasted eight shareholders with a combined 4% or more of the agenda items this year. There was no agenda item eligible voting shares to propose agenda items for the for adoption of the minutes of the previous meeting 2016 AGM and nominate directors in advance from since IRPC had sent them to the shareholders on September 25 to December 31, 2015. No additional April 22-30, 2015, for their review and objection or agenda nor nomination was proposed. For the 2017 amendment. No shareholder objected to the minutes, AGM, the shareholders can propose agenda items and and it was automatically adopted. For each agenda nominate directors in advance between September item, objectives and justification together with the 20, 2016, and January 31, 2017. opinion of the Board were stated as highlighted below: 44 - Acknowledgement of the 2015 performance and - Approval of directors’ compensation for 2016, for approval of IRPC’s 2015 financial statements, which IRPC had proposed a policy for directors’ audited and unconditionally certified by an compensation (namely retention fee, meeting fee, authorized external auditor. bonus). No other compensation or benefits were given. Details appear on pages 6-7 of the 2016 - Approval of dividend payment for the 2015 AGM meeting notice. performance. IRPC disclosed its dividend policy and successfully maintained suitable financial -