Question a 1. To ensure effectiveness in incorporating corporate governance, the company should reinforce independence in the company.

Reinforcing independence is to promote transparency and absolute management decision without bias. This can be achieved by initiative of the board to undertake assessment of its independent directors annually. As the assessment of independent directors is to eliminate compromise in objective judgment, the assessment also can answers concept of egoism by independent directors. Different view of varieties of egoism may take place where egoism can be psychological or ethical. If its psychological, the assessment is to avoid the action motivated by selfishness where it consequences can be conflict of interest or undue influence from interested parties. However if it is ethical, the assessment will identify the action done by directors was not based on self-interest.

2. Integrity in financial reporting is crucial to ensure that transparency and accuracy in reporting the financial position. The company is morally obliged to avoid presenting misleading information and cheating in the financial reports. The company should consider the relativism theory which most of the companies have been practiced it was not always accepted or perceived wrong by other company even though they fully complied with Financial Reporting Standards (FRS). Integrity check done by audit oversight board/committee to the external audit will ensure the reporting done was transparent and accurate. 3. Relationship between company and shareholders will create shared ownerships and help promoting concept of utilitarianism which defined as benefits of majority. Utilitarianism implies that we should always act in order to maximize overall satisfaction and benefit. Even though the minority will lose, that is the main reason of poll voting, one side is win and the other will lose. Proper publication as insisted by MCCG will ensure that any information were channeled properly to shareholders in order to achieve fair voting. Fair voting practiced also will preserve the concept of justice where fairness and equality which can be achieved from relevant information that was disseminated properly to all shareholders and directors.

4. Ethical standards are common in promoting good corporate governance. Transparency, integrity, honesty, fairness and high quality will eventually sustain the company from the unethical practices. It is the concept of rights, which a concept that company will enforce its ethical standards throughout the company to ensure that moral obligation can be achieved.

Question b Corporate governance should be principle based because principle is the basic of determinant of human action that will rule them towards the good practices. Rule may not contain principle and likely to force people to obey, it is a standard made to rule the people, however principle will encourage people to understand the concept before accepting it.