BIMB Integrated Annual Report 2019

Related Party Transactions • On 26 March 2019, the BAEC reviewed all related party/ recurrent related party transaction entered into by BHB Group for the financial year ended 31 December 2018 and the Circular to Shareholder with regard to the proposed renewal of Shareholders’ mandate for existing related party transactions of a revenue or trading nature. The same was recommended to the Board that BHB Group complied with the MMLR. • Reviewed the disclosure on the related party transactions and related party balances of BHB Group on quarterly basis i.e., 31 January 2019, 30 April 2019, 26 July 2019 and 31 October 2019 and in compliance with the MMLR. Annual Reporting • Reviewed and endorsed the BAEC’s overview report, Statement of Risk Management and Internal Control and content of other disclosures pursuant to the MMLR for the Board’s approval. Other Activities • Reviewed the report on compliance six (6) times a year. The report highlighted the status of compliance of the Company and its key operating subsidiaries pursuant to the following regulatory requirements: (1) Capital Market & Financial Law • Capital Markets & Services Act 2007 • Islamic Financial Services Act 2013 • Malaysian Financial Reporting Standard • Bank Negara Malaysia’s Financial Reporting for Islamic Institutions • Bank Negara Malaysia’s Observation Period Reporting (Capital Adequacy Ratio and Liquidity Coverage Ratio) (2) Main Market Listing Requirement (3) Companies Act 2016 (4) Corporate Governance • Bank Negara Malaysia’s Policy on Corporate Governance • Malaysian Code on Corporate Governance 2017 • Whistle-Blowing Policy The Management highlights any non-compliance to the BAEC and make recommendations on the control and mitigation plans. • Endorsed and recommended to the Board on the Zakat computation for BHB and its subsidiaries namely Syarikat Al-Ijarah Sdn. Bhd. and BIMB Securities (H) Sdn. Bhd. for the financial year ended 31 December 2018. • On 26 July 2019, the BAEC had a session with the nominee directors of BHB that sit as a director at STMKB and STMAB to discuss on matters relating the financial reporting and key audit matters. PERFORMANCE REVIEW OF THE BAEC Based on the annual evaluation on the effectiveness of the Board, its Committees and the members of the Board, it was revealed that the Board is satisfied with the performance of the BAEC and its members. The BAEC has discharged its duties in accordance with its Terms of Reference and in line with the requirements of MCCG, BNM CG Policy and MMLR. 144 Integrated Annual Report 2019 Group Overview Sustaining The Group Management Discussion & Analysis Group Governance Corporate Governance Overview Statement (Pursuant to Paragraph 15.25 (1) of the MMLR of Bursa Securities)