Problem
Kristal Berhad is involved in laundry services. It deals in garments and carpets washing services. Its business facility is located in Jitra, Kedah. Kristal Berhad is a family-owned business founded by Kristi Binti Maliki in September 2015. Kristi had been appointed as the Chairman of the Board, who also holds the chief executive officer (ceo) responsibilities of the company since is establishment. Kristi still controls 60 percent of the company's voting power to control all decisions being made and her board appears to be totally ineffectual. Minority shareholders of the company are not provided with tag-along rights.
However, the company was hit with an accounting scandal in 2019. It started when the company failed to adhere to the decline in submitting its audited annual accounts for the financial year ended 31 December, 2018 to Bursa Malaysia for public release. Consequently, Kristi and external auditor, Razali Izhar were charged by Security Commission with abetting the company in providing misleading unaudited consolidated reports for the 4th quarter of the financial year ended Dec 31,2019.
Task
A. Discuss two of CEO duality that exist at Kristal Berhad. Support your answer with the guidance provided by the Malaysian Code on Corporate Government (MCCG) 2021.
B. Discuss the application of Comprehend, Apply, and Report (CARE) principles that should be implemented at Kristal Berhad in promoting good corporate governance.
C. Recommend two possible types of protection that can be given to a whistle blower at Kristal Berhad.
D. Explain the criteria for each of the three elements of Environmental, Social and Governance (ESG) in relation to Kristal Berhad business activities.