Draft of SEC Form-ACGR (Annual Corporate Governance Report)

2012 SEC NOTICE The Commission hereby requests comments on the exposure draft of the SEC Form-ACGR (Annual Corporate Governance Report) which it proposes to adopt as part of the reportorial requirements of listed and mutual fund companies, in line with the State's policy to actively promote corporate governance reforms aimed at raising investor confidence and developing the capital market. The submission of the ACGR shall take effect only for companies with fiscal years ending July 1, 2012 onwards. The ACGR shall be submitted together with the company's annual report. The said exposure draft is open for public comment until 30 May 2012. Please transmit duly signed written comments to JUSTINA F. CALLANGAN, Acting Director, CORPORATION FINANCE DEPARTMENT, 6/F SEC Building, Edsa Greenhills, Mandaluyong City or fax number 584-5990 or email at [emailprotected]. HScaCT ATTACHMENT SECURITIES AND EXCHANGE COMMISSION SEC FORM-ACGR ANNUAL CORPORATE GOVERNANCE REPORT GENERAL INSTRUCTIONS (A) Use of Form CGR This SEC Form shall be used to meet the requirements of the Revised Code of Corporate Governance. (B) Preparation of Report These general instructions are not to be filed with the report. The instructions to the various captions of the form shall not be omitted from the report as filed. The report shall contain the numbers and captions of all items. If any item is inapplicable or the answer thereto is in the negative, an appropriate statement to that effect shall be made. TESICD (C) Signature and Filing of the Report 1) Four (4) complete sets of the report, shall be filed with the Main Office of the Commission. 2) At least one complete copy of the report filed with the Commission shall be manually signed. 3) All reports shall comply with the full disclosure requirements of the Securities Regulation Code. 4) This report is required to be filed annually together with the company's annual report. (D) Filing an Amendment If this report amends a previously filed SEC Form ACGR, please so indicate on the cover page and note the items to be amended. Only those items where there is a material change in the facts are required to be included in the amendment. Item 1. Capitalization and Ownership Structure (a) Capital Structure (1) Complete the following table on the company's capital structure: Date of Latest Authorized Capital Shares Issued Amendment of the Stock and Outstanding Articles of Incorporation ____________________ _______________ _____________ ____________________ _______________ _____________ (2) If there are different classes of shares, indicate them in the following table: Class Par Number of Issued and Value Shares Outstanding ____________ ____________ ______________ ____________ ____________ ____________ ______________ ____________ ____________ ____________ ______________ ____________ (3) Indicate the number of shares held by Filipinos and foreigners: (4) Treasury Shares Complete the following table on the company's treasury shares: Title of each Class Number of Shares Total % from Capital of Securities Stock ________________ ________________ ________________ ________________ ________________ ________________ (b) Description of Shares (1) Registered Shares Give details on the securities registered pursuant to Sections 8 and 12 of the Securities Registration Code. Title of each Class No. of Registered Date of Issue (Order of Securities Shares of Registration) ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ (2) Listed Shares Complete the following table on the company's shares, listed on an Exchange: Title of each Class No. of Listed Listing Date Name of of Securities Shares Exchange _______________ _____________ _________ __________ _______________ _____________ _________ __________ _______________ _____________ _________ __________ _______________ _____________ _________ __________ _______________ _____________ _________ __________ (c) Ownership Structure (1) Public Ownership Complete the following table on the company's shares, as of the latest date: Class of No. of No. of No. of No. of No. of Shares Issued and Shares Shares Shares Shares Outstanding owned by owned by Owned by Owned by Shares Directors/ Affiliate/ Employees the Public Officers Subsidiaries a) Filipino _______ _________ __________ _________ ___________ ________ _______ _________ __________ _________ ___________ ________ b) foreign _______ _________ __________ _________ ___________ ________ _______ _________ __________ _________ ___________ ________ (2) Holders of 5% or more Give details of the direct and indirect shares of 5% or more shareholders, excluding board members: Shareholder's Number of Direct Number of Total % from Name Shares Indirect Shares* Capital Stock ____________ _____________ _____________ ____________ ____________ _____________ _____________ ____________ ____________ _____________ _____________ ____________ ____________ _____________ _____________ ____________ * Indirect through: Name of the Number of Direct Total % from Shareholder Shares Capital Stock _________________ ___________________ _____________ _________________ ___________________ _____________ Total ___________________ _____________ (3) Shares Owned by Directors and Officers Complete the following table on the members of the company's Board of Directors who directly and indirectly own shares in the company: Director's Name Number of Direct Number of Total % shares Indirect shares* from Capital Stock ______________ ____________ _____________ ___________ ______________ ____________ _____________ ___________ ______________ ____________ _____________ ___________ * Indirectly owned through: Name of the Shareholder Number of Direct Shares _______________________________ _____________________ _______________________________ _____________________ _______________________________ _____________________ Total _____________________ Total % of Capital Stock in possession of the members of the Board of Directors _____________________ Item 2. Code of Business Conduct & Ethics (a) Managers and Employees Discuss the company's policies on the following business conduct affecting Managers and Employees: Business Conduct & Managers Employees Ethics 1. Conflict of Interest ______________ ________________ 2. Conduct of Business and Fair Dealings ______________ ________________ 3. Receipt of gifts from third parties ______________ ________________ 4. Compliance with Laws and Regulations ______________ ________________ 5. Respect for Trade Secrets ______________ ________________ 6. Use of Company Funds, Assets and Information ______________ ________________ 7. Employment and Labor Laws and Policies ______________ ________________ 8. Disciplinary action ______________ ________________ 9. Whistle Blower ______________ ________________ (b) Board of Directors and Executive Officers Discuss the company's policies on the following business conduct affecting the Board of Directors and Officers: DScTaC Business Conduct & Ethics Board of Directors Executive Officers 1. Conflict of Interest ________________ __________________ 2. Conduct of Business and Fair Dealings ________________ __________________ 3. Receipt of gifts from third parties ________________ __________________ 4. Compliance with Laws and Regulations ________________ __________________ 5. Use of Non-Public Information and Disclosure ________________ __________________ 6. Use of Company Funds, Assets and Information ________________ __________________ 7. Certificate of compliance with Code of Business Conduct & Ethics ________________ __________________ 8. Disciplinary action ________________ __________________ 9. Whistle Blower ________________ __________________ Item 3. Family, Commercial and Contractual Relations (a) Indicate, if applicable, any relation of a family, commercial, contractual or business nature that exists between the holders of significant equity (5% or more), to the extent that they are known to the company: Names of Related Type of Relationship Brief Description of the Significant Shareholders Relationship _____________________ ____________________ ____________________ _____________________ ____________________ ____________________ _____________________ ____________________ ____________________ _____________________ ____________________ ____________________ (b) Indicate, if applicable, any relation of a commercial, contractual or business nature that exists between the holders of significant equity (5% or more) and the company, except when they are insignificant or results from the ordinary course of business or commercial trade: Names of Related Type of Relationship Brief Description Significant Shareholders _____________________ ____________________ ____________________ _____________________ ____________________ ____________________ _____________________ ____________________ ____________________ _____________________ ____________________ ____________________ (c) Indicate any agreements reached between or among shareholders that are known to the company: Name of Shareholders % of Capital Stock Brief Description of the affected (Parties) Transaction _____________________ ____________________ ____________________ _____________________ ____________________ ____________________ (d) Indicate, if applicable, agreed actions between the shareholders of the company which are known to the company: Name of Shareholders % of Capital Stock Brief Description of the affected Agreed Action _____________________ ____________________ ____________________ _____________________ ____________________ ____________________ Item 4. Directorship in Other Companies (a) Directorship in the Company's Group Identify, as and if applicable, the Members of the Board, Executive Directors and Non-Executive Directors who hold the office of Director in other companies which form part of the Company's Group: Director's Name Corporate Name of the Position Group Company _____________________ ____________________ ____________________ _____________________ ____________________ ____________________ _____________________ ____________________ ____________________ _____________________ ____________________ ____________________ (b) Directorship in Other Listed Companies Provide the details, as and if applicable, of the company's Board of Directors, Executive Directors, Non-Executive Directors and Independent Directors who are members of the Board of Directors of other companies listed on the Exchange other than its group, which have been disclosed to the company: Director's Name Name of Listed Company Position _____________________ ____________________ ____________________ _____________________ ____________________ ____________________ _____________________ ____________________ ____________________ (c) Significant Shareholdings in the Company and its Group Indicate, as and if applicable, the identity of the members of the Board of Directors, Executive Directors and Non-Executive Directors who are at the same time members of the Board of Directors or are directors of companies that hold significant shareholdings in the listed company and/or companies within its group: Director's Name Name or Corporate Name Position of the Significant Shareholder _____________________ ____________________ ____________________ _____________________ ____________________ ____________________ _____________________ ____________________ ____________________ _____________________ ____________________ ____________________ _____________________ ____________________ ____________________ (d) Relationship within the Company and its Group Provide details, as and if applicable, any relation among the members of the Board of Directors, Executive Directors and Non-Executive Directors which links them to significant shareholders in the company and/or in its group: Director's Name Name of the Description of the Significant Shareholder relationship _____________________ ____________________ ____________________ _____________________ ____________________ ____________________ _____________________ ____________________ ____________________ _____________________ ____________________ ____________________ Item 5. Related Party Transactions & Conflict of Interest (a) Policies and Procedures Indicate the company's policies and procedures on related party transactions between and among the company and its parent, joint ventures, subsidiaries, affiliates, substantial stockholders, officers and directors, including their spouses, children and dependent siblings and parents and of interlocking director relationships of members of the Board. Related Party Transactions Policies and Procedures (1) Parent Company ___________________________ (2) Joint Ventures ___________________________ (3) Subsidiaries ___________________________ (4) Entities Under Common Control ___________________________ (5) Substantial Stockholders ___________________________ (6) Officers including spouse/ children/siblings/parents ___________________________ (7) Directors including spouse/ children/siblings/parents ___________________________ (8) Interlocking director relationship of Board of Directors ___________________________ (b) Conflict of Interest (1) Directors/Officers and 5% or more Shareholders Identify any conflict of interest to which directors/officers/5% or more shareholders may be involved. IcHTCS Details of Conflict Name of Name of Name of of Interest Director/s Officer/s Significant Shareholders ______________ _____________ __________ ____________ ______________ _____________ __________ ____________ ______________ _____________ __________ ____________ (2) Mechanism Describe the mechanism laid down to detect, determine and resolve any possible conflict of interest between the company and/or its group and their directors, officers and significant shareholders. Company Its Group Directors/Officers/ Significant Shareholders _____________ _____________ _________________________ _____________ _____________ _________________________ _____________ _____________ _________________________ (c) Alternative Dispute Resolution Describe the alternative dispute resolution system adopted by the company in amicably settling conflicts or differences between the corporation and its stockholders, and the corporation and third parties, including regulatory authorities. Alternative Dispute Corporation & Corporation & Corporation & Resolution System Stockholders Third Parties Regulatory Authorities ________________ _______________ _____________ _____________________ ________________ _______________ _____________ _____________________ ________________ _______________ _____________ _____________________ Item 6. Risk Management System (a) Risk Policy (1) Company Give a general description of the company's risk management policy, setting out and assessing the risk/s covered by the system, along with the objective behind the policy for each kind of risk: Externally Driven Risk Management Objective Risk Policy 1. Strategic _________________ ______________ 2. Operational _________________ ______________ 3. Hazard _________________ ______________ 4. Knowledge Management _________________ ______________ 5. Compliance _________________ ______________ Internally Driven Risk Management Objective Risk Policy 1. Accounting Controls _________________ ______________ 2. Information Systems _________________ ______________ 3. Research & Development _________________ ______________ 4. Intellectual Capital _________________ ______________ (2) Group Give a general description of the group's risk management policy, setting out and assessing the risk/s covered by the system, along with the objective behind the policy for each kind of risk: Externally Driven Risk Management Objective Risk Policy 1. Strategic _________________ ______________ 2. Operational _________________ ______________ 3. Hazard _________________ ______________ 4. Knowledge Management _________________ ______________ 5. Compliance _________________ ______________ Internally Driven Risk Management Objective Risk Policy 1. Accounting Controls _________________ ______________ 2. Information Systems _________________ ______________ 3. Research & Development _________________ ______________ 4. Intellectual Capital _________________ ______________ (3) Minority Shareholders Indicate the principal risk of the exercise of controlling shareholders' voting power. Risk to Minority Shareholders _____________________________________________ _____________________________________________ _____________________________________________ (b) Control System Set Up (1) Company State the control systems set up to assess, mitigate or reduce the main issue/s faced by the company: Externally Driven Control Assessment Mitigation Reduction System 1. Strategic _________ __________ __________ _________ 2. Operational _________ __________ __________ _________ 3. Hazard _________ __________ __________ _________ 4. Knowledge Management _________ __________ __________ _________ 5. Compliance _________ __________ __________ _________ Internally Driven Control Assessment Mitigation Reduction System 1. Accounting Controls _________ __________ __________ _________ 2. Information Systems _________ __________ __________ _________ 3. Research & Development _________ __________ __________ _________ 4. Intellectual Capital _________ __________ __________ _________ (2) Group State the control systems set up to assess, mitigate or reduce the main issue/s faced by its group: Externally Driven Control Assessment Mitigation Reduction Risk System 1. Strategic _________ __________ __________ _________ 2. Operational _________ __________ __________ _________ 3. Hazard _________ __________ __________ _________ 4. Knowledge Management _________ __________ __________ _________ 5. Compliance _________ __________ __________ _________ Internally Driven Control Assessment Mitigation Reduction System 1. Accounting Controls _________ __________ __________ _________ 2. Information Systems _________ __________ __________ _________ 3. Research & Development _________ __________ __________ _________ 4. Intellectual Capital _________ __________ __________ _________ (3) Committee State whether there is a committee or any other body of corporate governance in charge of laying down and supervising these control mechanisms, and give details of its functions: Committee Control Mechanism Details of its Functions _____________ _________________ ____________________ _____________ _________________ ____________________ Item 7. Administrative Structure (a) Board of Directors Number of Directors per Articles of Incorporation _______________________ Actual number of Directors for the year _______________________ (1) Election of Directors Complete the table with information on the Board of Directors: Director's If Position Date first Date last Elected Name nominee, Held elected elected when identify (Annual/ the Special principal Meeting) _________ _________ _______ _______ ________ _________ _________ _________ _______ _______ ________ _________ _________ _________ _______ _______ ________ _________ _________ _________ _______ _______ ________ _________ _________ _________ _______ _______ ________ _________ _________ _________ _______ _______ ________ _________ _________ _________ _______ _______ ________ _________ _________ _________ _______ _______ ________ _________ _________ _________ _______ _______ ________ _________ _________ _________ _______ _______ ________ _________ _________ _________ _______ _______ ________ _________ _________ _________ _______ _______ ________ _________ _________ _________ _______ _______ ________ _________ (2) Change/s in existing policies Indicate, if applicable, any major changes introduced by the Board of Directors (during its most recent term) on existing policies that may have a significant effect on the business and the reason/s for the change: Existing Policies Changes Reason __________________ ________________ ______________ __________________ ________________ ______________ __________________ ________________ ______________ __________________ ________________ ______________ __________________ ________________ ______________ __________________ ________________ ______________ __________________ ________________ ______________ __________________ ________________ ______________ __________________ ________________ ______________ (b) Chairman and CEO (1) Functions of the Chairman and CEO State whether the positions of Chairman of the Board of Directors and CEO are unified. If so, state separately the functions of Chairman and CEO. Yes [ ] No [ ] Chairman Chief Executive Officer ____________________ __________________________ ____________________ __________________________ ____________________ __________________________ ____________________ __________________________ (2) Roles, Accountabilities and Deliverables Define and clarify the roles, accountabilities and deliverables of the Chairman and Chief Executive Officer. Chairman Chief Executive Officer Role _____________ _____________________ Accountabilities _____________ _____________________ Deliverables _____________ _____________________ (3) Risk Measures on Power Accumulation State the measures taken to limit the risks of accumulation of powers in a single person: Person/s Involved Measures Taken ____________________ ______________________ ____________________ ______________________ ____________________ ______________________ ____________________ ______________________ (c) Other Executive, Non-Executive and Independent Directors (1) Roles, Accountabilities and Deliverables Define and clarify the roles, accountabilities and deliverables of the Executive, Non-Executive and Independent Directors: Executive Non-Executive Independent Director Role ___________ _____________ ____________ Accountabilities ___________ _____________ ____________ Deliverables ___________ _____________ ____________ (2) Independent Director Term Limit Indicate the term limit of Independent Directors, if any. Name of Independent Director Term Limit ____________________________ ___________________ ____________________________ ___________________ ____________________________ ___________________ (3) Election of Officers Complete the table with information on the company's Executive, Non-Executive and Independent Directors: (i) Executive Directors Director's Name Nominator Position ___________________ _________________ ______________ ___________________ _________________ ______________ ___________________ _________________ ______________ ___________________ _________________ ______________ (ii) Non-Executive Directors (other than Independent Directors) Director's Name Nominator Position ___________________ _________________ ______________ ___________________ _________________ ______________ ___________________ _________________ ______________ ___________________ _________________ ______________ (iii) Independent Directors Director's Name Nominator Relationship with No. of Years Nominator Served as Independent Director _____________ ____________ ____________ _____________ _____________ ____________ ____________ _____________ _____________ ____________ ____________ _____________ _____________ ____________ ____________ _____________ (d) Changes in the Board of Directors, Executive, Non-Executive and Independent Directors EcDSTI (1) Resignation/Death/Removal Indicate any changes in the composition of the Board of Directors, Executive, Non-Executive and Independent Directors that happened during the period: Name Position Date of Cessation Reason _____________ ____________ ____________ _____________ _____________ ____________ ____________ _____________ _____________ ____________ ____________ _____________ _____________ ____________ ____________ _____________ (2) Selection/Appointment, Re-election, Disqualification, Removal, Re-instatement and Suspension Describe the procedures for the selection/appointment, re-election, disqualification, removal, re-instatement and suspension of the members of the Board of Directors (Executive, Non-Executive, and Independent Directors). Provide details of the processes adopted and the criteria employed in each procedure: Procedure Process Adopted Criteria a. Selection/Appointment (i) Executive Directors ______________ ___________ (ii) Non-Executive Directors ______________ ___________ (iii) Independent Directors ______________ ___________ b. Re-election (i) Executive Directors ______________ ___________ (ii) Non-Executive Directors ______________ ___________ (iii) Independent Directors ______________ ___________ c. Permanent Disqualification (i) Executive Directors ______________ ___________ (ii) Non-Executive Directors ______________ ___________ (iii) Independent Directors ______________ ___________ d. Temporary Disqualification (i) Executive Directors ______________ ___________ (ii) Non-Executive Directors ______________ ___________ (iii) Independent Directors ______________ ___________ e. Removal (i) Executive Directors ______________ ___________ (ii) Non-Executive Directors ______________ ___________ (iii) Independent Directors ______________ ___________ f. Re-instatement (i) Executive Directors ______________ ___________ (ii) Non-Executive Directors ______________ ___________ (iii) Independent Directors ______________ ___________ g. Suspension (i) Executive Directors ______________ ___________ (ii) Non-Executive Directors ______________ ___________ (iii) Independent Directors ______________ ___________ Item 8. Remuneration (a) Remuneration Process Disclose the process used for determining the remuneration of the CEO and the most highly compensated Executive and Non-Executive Officers: Process CEO Top 5 Highest Paid Top 5 Highest Executive Officers Paid Non- Executive Officers (1) Fixed remuneration ____________ ______________ _______________ (2) Variable remuneration ____________ ______________ _______________ (3) Per diem allowance ____________ ______________ _______________ (4) Bonus ____________ ______________ _______________ (5) Stock Options and other financial instruments ____________ ______________ _______________ (6) Others (specify) ____________ ______________ _______________ Disclose the company's philosophy on remuneration and the structure of its compensation package. Explain how the compensation of Executive and Non-Executive Directors is calculated. Remuneration Structure of How Philosophy Compensation Compensation Packages is Calculated Executive Directors ____________ ______________ _______________ Non-Executive Directors ____________ ______________ _______________ c) Aggregate Remuneration Complete the following table on the aggregate remuneration accrued during the most recent year: (1) The Company Remuneration Item Board of Executive Non- Independent Directors Directors Executive Directors Directors (a) Fixed Remuneration _________ __________ __________ __________ (b) Variable Remuneration _________ __________ __________ __________ (c) Per diem Allowance _________ __________ __________ __________ (d) Bonuses _________ __________ __________ __________ (e) Stock Options and/ or other financial instruments _________ __________ __________ __________ (f) Others (Specify) _________ __________ __________ __________ Total _________ __________ __________ __________ Other Benefits Board of Executive Non- Independent Directors Directors Executive Directors Director (a) Advances _________ __________ __________ __________ (b) Credit granted _________ __________ __________ __________ (c) Pension Plan or Plans Contributions _________ __________ __________ __________ (d) Pension Plans, Obligations incurred _________ __________ __________ __________ (e) Life Insurance Premium _________ __________ __________ __________ (f) Hospitalization Plan _________ __________ __________ __________ (g) Car Plan _________ __________ __________ __________ (h) Others (Specify) _________ __________ __________ __________ Total _________ __________ __________ __________ (2) Group of Companies Directors, Executive Directors, Non-Executive Directors who are members of other boards and/or the top management of the parent company, subsidiaries or entities under common control: Remuneration Item Board of Executive Non- Independent Directors Directors Executive Directors Directors (a) Fixed Remuneration _________ __________ __________ __________ (b) Variable Remuneration _________ __________ __________ __________ (c) Per diem Allowance _________ __________ __________ __________ (d) Bonuses _________ __________ __________ __________ (e) Stock Options and/ or other financial instruments _________ __________ __________ __________ (f) Others (Specify) _________ __________ __________ __________ Total _________ __________ __________ __________ Other Benefits Board of Executive Non- Independent Directors Directors Executive Directors Directors (a) Advances _________ __________ __________ __________ (b) Credit granted _________ __________ __________ __________ (c) Pension Plan or Plans Contributions _________ __________ __________ __________ (d) Pension Plans, Obligations incurred _________ __________ __________ __________ (e) Life Insurance Premium _________ __________ __________ __________ (f) Hospitalization Plan _________ __________ __________ __________ (g) Car Plan _________ __________ __________ __________ (h) Others (Specify) _________ __________ __________ __________ Total _________ __________ __________ __________ (3) Total remuneration per type of director Type of Director Per Company Per Group of Company Regular Directors _____________ ___________________ Executive Directors _____________ ___________________ Non-Executive Directors _____________ ___________________ Independent Directors _____________ ___________________ Total _____________ ___________________ (4) With respect to profits attributable to the holding company (if any): Total remuneration Total remuneration of directors as a percentage of the profit distributed to the holding company Board of Directors ________________________________ Executive Directors ________________________________ Non-Executive Directors ________________________________ Independent Directors ________________________________ (d) Stock Rights, Options and Warrants (1) Board of Directors Complete the following table, on the members of the company's Board of Directors who own or are entitled to stock rights, options or warrants over the company's shares: Director's Number of Number of Number of Total % from Name Direct Indirect Equivalent Capital Stock Option/Rights/ Option/Rights/ Shares Warrants Warrants ________ _____________ ___________ ____________ _________ ________ _____________ ___________ ____________ _________ ________ _____________ ___________ ____________ _________ ________ _____________ ___________ ____________ _________ (2) Executive, Non-Executive Directors Complete the following table on the Executive and Non-Executive Directors who own or are entitled to stock rights, options or warrants over the company's shares: Director's Number of Number of Number of Total % from Name Direct Indirect Equivalent Capital Stock Option/Rights/ Option/Rights/ Shares Warrants Warrants ________ _____________ ___________ ____________ _________ ________ _____________ ___________ ____________ _________ ________ _____________ ___________ ____________ _________ (3) Amendments of Incentive Programs Indicate any amendments and discontinuation of any incentive programs introduced, including the criteria used in the creation of the program. Disclose whether these are subject to approval during the Annual Stockholders' Meeting: Incentive Program Amendments Date of Stockholders' Approval ________________ _________________ ________________ ________________ _________________ ________________ ________________ _________________ ________________ (e) Remuneration of Management Identify the five (5) members of management who are not at the same time executive directors and indicate the total remuneration received during the financial year: Name Amount ______________________ ________________________ ______________________ ________________________ ______________________ ________________________ ______________________ ________________________ ______________________ ________________________ Total ________________________ Item 9. Organizational & Board Meetings (a) Number of Meetings State the number of meetings of the Board of Directors during its term and, if applicable, the number of times the board met without its Chairman: Organizational Meeting ________________ Board Meeting ________________ Number of board meetings with the Chairman ________________ Number of board meetings without the Chairman ________________ (b) Attendance of Directors Board Name Date of No. of No. of % Election Meetings Meetings Held during Attended incumbency Chairman ______________ ___________ ___________ ___________ ______ Member ______________ ___________ ___________ ___________ ______ Member ______________ ___________ ___________ ___________ ______ Member ______________ ___________ ___________ ___________ ______ Member ______________ ___________ ___________ ___________ ______ Member ______________ ___________ ___________ ___________ ______ Member ______________ ___________ ___________ ___________ ______ Independent ______________ ___________ ___________ ___________ ______ Independent ______________ ___________ ___________ ___________ ______ (c) Temporary Disqualification Indicate if there is a provision on temporary disqualification of directors with less than 50% attendance during the most recent year; if so, provide details: Yes [ ] No [ ] Procedures Details ______________________ ________________________ ______________________ ________________________ ______________________ ________________________ ______________________ ________________________ (d) External Advice Indicate whether or not a procedure exists whereby directors can receive external advice and, if so, provide details: Procedures Details ______________________ ________________________ ______________________ ________________________ ______________________ ________________________ ______________________ ________________________ (e) Committee Procedures Disclose whether there is a procedure that Directors can avail of to enable them to get information necessary to be able to prepare in advance for the meetings of different committees: Yes [ ] No [ ] Committee Details of the procedures Audit ____________________________ Corporate Governance ____________________________ Executive ____________________________ Ethics and Social Responsibility ____________________________ Nomination ____________________________ Remuneration ____________________________ Risk Management ____________________________ Others (specify) ____________________________ (f) Major Issue/s resolved Date of Meeting Issue/s resolved ______________________ ________________________ ______________________ ________________________ ______________________ ________________________ ______________________ ________________________ ______________________ ________________________ ______________________ ________________________ Item 10. Trainings and Seminars (a) Professional Development State the professional Development Training attended, if any, by Directors and Officers for the past three (3) years: Name of Date of Program Name of Accredited Director/Officer Training Training Institution ______________ __________ ________________ ____________________ ______________ __________ ________________ ____________________ ______________ __________ ________________ ____________________ (b) Value Orientation State the Value Orientation Seminar attended, if any, by Directors and Officers for the past three (3) years: Name of Date of Program Name of Accredited Director/Officer Training Training Institution ______________ __________ ________________ ____________________ ______________ __________ ________________ ____________________ ______________ __________ ________________ ____________________ ______________ __________ ________________ ____________________ (c) Risk Management State the Risk Management Training, if any, attended by Directors and Officers for the past three (3) years: Name of Date of Program Name of Accredited Director/Officer Training Training Institution ______________ __________ ________________ ____________________ ______________ __________ ________________ ____________________ ______________ __________ ________________ ____________________ ______________ __________ ________________ ____________________ Item 11. Board Committees (a) Number of Members, Functions and Responsibilities Provide details on the number of members of each committee, its functions and key responsibilities: SEIcHa Committee No. of Functions Key Responsibilities Members Audit __________ ________________ __________________ Corporate Governance __________ ________________ __________________ Executive __________ ________________ __________________ Ethics and Social Responsibility __________ ________________ __________________ Nomination __________ ________________ __________________ Remuneration __________ ________________ __________________ Risk Management __________ ________________ __________________ (b) Committee Members (1) Corporate Governance Committee Office Name Date of No. of No. of % Appointment Meetings Meetings Held Attended Chairman ________________ __________ ________ _______ ____ Member ________________ __________ ________ _______ ____ Member ________________ __________ ________ _______ ____ Member ________________ __________ ________ _______ ____ Member ________________ __________ ________ _______ ____ Non-executive ________________ __________ ________ _______ ____ State how the Corporate Governance Committee conducts an annual review of committee performance and/or individual performance in accordance with guidelines recommended by the committee and approved by the Board. Corporate Governance Review of Committee Review of Individual Guidelines Performance Performance ___________________ ___________________ _______________ ___________________ ___________________ _______________ ___________________ ___________________ _______________ (2) Executive Committee Office Name Date of No. of No. of % Appointment Meetings Meetings Held Attended Chairman ________________ __________ ________ _______ ____ Member ________________ __________ ________ _______ ____ Member ________________ __________ ________ _______ ____ Member ________________ __________ ________ _______ ____ Member ________________ __________ ________ _______ ____ Non-executive ________________ __________ ________ _______ ____ Explain the degree of delegation and autonomy it enjoys in the performance of its duties, and the adoption of resolutions on the company's management and administration. Delegation and Autonomy Adopted Resolutions _________________________ ______________________ _________________________ ______________________ _________________________ ______________________ _________________________ ______________________ State how the Executive Committee conducts an annual review of committee performance, and/or individual performance in accordance with guidelines recommended by the Committee and approved by the Board. Executive Committee Review of Committee Review of Individual Guidelines Performance Performance _________________ ___________________ _______________ _________________ ___________________ _______________ _________________ ___________________ _______________ (3) Ethics and Social Responsibility Committee Office Name Date of No. of No. of % Appointment Meetings Meetings Held Attended Chairman ________________ __________ ________ _______ ____ Member ________________ __________ ________ _______ ____ Member ________________ __________ ________ _______ ____ Member ________________ __________ ________ _______ ____ Member ________________ __________ ________ _______ ____ Non-executive ________________ __________ ________ _______ ____ State how the Ethics and Social Responsibility Committee conducts an annual review of committee performance and/or individual performance in accordance with guidelines recommended by the Committee and approved by the Board. Ethics and Social Review of Committee Review of Individual Responsibility Guidelines Performance Performance ____________________ __________________ ________________ ____________________ __________________ ________________ ____________________ __________________ ________________ (4) Audit Committee Office Name Qualification Date of No. of No. of % Competence Appointment Meetings Meetings Held Attended Chairman _______________ ___________ __________ ________ ________ ___ Member _______________ ___________ __________ ________ ________ ___ Member _______________ ___________ __________ ________ ________ ___ Member _______________ ___________ __________ ________ ________ ___ Member _______________ ___________ __________ ________ ________ ___ Non-executive _______________ ___________ __________ ________ ________ ___ State how the Audit Committee conducts an annual review of committee performance and/or individual performance of the audit committee in accordance with guidelines recommended by the Committee and approved by the Board. Audit Committee Review of Committee Review of Individual Guidelines Performance Performance ____________________ __________________ ________________ ____________________ __________________ ________________ ____________________ __________________ ________________ ____________________ __________________ ________________ (5) Nomination Committee Office Name Date of No. of No. of % Appointment Meetings Meetings Held Attended Chairman ________________ __________ ________ _______ ____ Member ________________ __________ ________ _______ ____ Member ________________ __________ ________ _______ ____ Member ________________ __________ ________ _______ ____ Member ________________ __________ ________ _______ ____ Non-executive ________________ __________ ________ _______ ____ State how the Nomination Committee conducts an annual review of committee performance and/or individual performance in accordance with guidelines recommended by the Committee and approved by the Board. Nomination Committee Review of Committee Review of Individual Guidelines Performance Performance ___________________ _________________ _________________ ___________________ _________________ _________________ ___________________ _________________ _________________ ___________________ _________________ _________________ ___________________ _________________ _________________ ___________________ _________________ _________________ (6) Remuneration Committee Office Name Date of No. of No. of % Appointment Meetings Meetings Held Attended Chairman ________________ __________ ________ _______ ____ Member ________________ __________ ________ _______ ____ Member ________________ __________ ________ _______ ____ Member ________________ __________ ________ _______ ____ Member ________________ __________ ________ _______ ____ Non-executive ________________ __________ ________ _______ ____ State how the Remuneration Committee conducts an annual review of directors, management, and individual performance against their Key Performance Indicators (KPIs) in accordance with guidelines recommended by the Committee and approved by the Board. Remuneration Committee Review of Guidelines Performance Board of Directors _____________________ ______________ Management _____________________ ______________ Individuals _____________________ ______________ (7) Risk Management Committee Office Name Date of No. of No. of % Appointment Meetings Meetings Held Attended Chairman ________________ __________ ________ _______ ____ Member ________________ __________ ________ _______ ____ Member ________________ __________ ________ _______ ____ Member ________________ __________ ________ _______ ____ Member ________________ __________ ________ _______ ____ Non-Member ________________ __________ ________ _______ ____ State how the Risk Management Committee conducts an annual review of the company's risks in accordance with guidelines recommended by the Committee and approved by the Board. Risk Management Review of Performance Guidelines 1. Financial ______________________________ 2. Strategic ______________________________ 3. Operational ______________________________ 4. Hazard ______________________________ 5. Knowledge Management ______________________________ 6. Compliance ______________________________ (c) Powers of Each Committee (1) Advisory and Consultation State, as and if applicable, the advisory and consultation powers delegated to each of the committees: Committee Advisory Powers Consultation Powers Audit __________________ ________________ Corporate Governance __________________ ________________ Ethics and Social Responsibility __________________ ________________ Executive __________________ ________________ Nomination __________________ ________________ Remuneration __________________ ________________ Risk Management __________________ ________________ (2) Regulations on Consultations and Amendments State, as and if applicable, the regulations of the board committees, the places where they are available for consultation and any amendments introduced during the financial year. Also state whether or not an annual report has been submitted on the activities of each committee. DHaECI Committee Regulations Place of Amendments Consultation Audit ____________ ____________ _____________ Corporate Governance ____________ ____________ _____________ Ethics and Social Responsibility ____________ ____________ _____________ Executive ____________ ____________ _____________ Nomination ____________ ____________ _____________ Remuneration ____________ ____________ _____________ Risk Management ____________ ____________ _____________ (d) Work Done and Issues Addressed State, the report on the work done by each committee, if any, and the significant issues addressed. Name of Work Done Issues Addressed Committee Audit ___________________ __________________ Corporate Governance ___________________ __________________ Ethics and Social Responsibility ___________________ __________________ Executive ___________________ __________________ Nomination ___________________ __________________ Remuneration ___________________ __________________ Risk Management ___________________ __________________ (e) Committee Program Provide a list of program that each committee plans to undertake to address relevant issues in the improvement or enforcement of effective governance for the coming year. Name of Planned Programs Issues to be Addressed Committee Audit ___________________ __________________ Corporate Governance ___________________ __________________ Ethics and Social Responsibility ___________________ __________________ Executive ___________________ __________________ Nomination ___________________ __________________ Remuneration ___________________ __________________ Risk Management ___________________ __________________ (f) Changes in Committee Members Indicate any change in committee membership that happened during the period and the reason for the changes: Name of Committee Name Reason Audit ___________________ __________________ Corporate Governance ___________________ __________________ Ethics and Social Responsibility ___________________ __________________ Executive ___________________ __________________ Nomination ___________________ __________________ Remuneration ___________________ __________________ Risk Management ___________________ __________________ Item 12. Internal Audit and Control (a) Role, Scope and Resources Give a general description of the role, scope and resources of Internal Audit. Role Scope Resources __________________ ____________________ _________________ __________________ ____________________ _________________ (b) Evaluation Process State the evaluation of the Audit Committee's assessment process of the internal auditor's competence and the performance of its internal audit functions. Evaluation Process Competency Performance __________________ ____________________ _________________ __________________ ____________________ _________________ (c) Resignation, Re-assignment and Reasons State any resignations or re-assignment of the internal audit staff and the reason/s for them. Name of Audit Staff Reason _____________________ ______________________________ _____________________ ______________________________ _____________________ ______________________________ (d) Progress against Plans, Issues, Findings and Examination Trend State the internal audit's progress against plans, significant issues, significant findings and examination trends. Progress Against Issues Findings Examination Trends Plans _________________ ___________ __________ ___________________ _________________ ___________ __________ ___________________ _________________ ___________ __________ ___________________ (e) Audit Control Policies and Procedures State the company's internal audit control policies and procedures and their implementation. DCcAIS Policies & Procedures Implementation __________________________ ____________________________ __________________________ ____________________________ __________________________ ____________________________ (f) Mechanism and Safeguards State the mechanism established by the company to safeguard the independence of the auditors, financial analysts, investment banks and rating agencies: Auditors Financial Analysts Investment Banks Rating Agencies _____________ ________________ ________________ _______________ _____________ ________________ ________________ _______________ _____________ ________________ ________________ _______________ Item 13. Annual/Special Stockholders' Meeting (a) Quorum Give details on the quorum required to convene the Annual/Special Stockholders' Meeting as set forth in its By-laws. Quorum Required __________________ (b) System Used to Approve Corporate Acts Explain the system used to approve corporate acts. System Used _________________________ Description _________________________ (c) Stockholders' Rights List any Stockholders' Rights concerning Annual/Special Stockholders' Meeting that differ from those laid down in the Corporation Code. Stockholders' Rights under Stockholders' Rights not in the Corporation Code the Corporation Code ___________________________ __________________________ ___________________________ __________________________ ___________________________ __________________________ ___________________________ __________________________ (d) Stockholders' Participation Measures Adopted State, if any, the measures adopted to promote stockholder participation in the Annual/Special Stockholders' Meeting, including the procedure on how stockholders and other parties interested may communicate directly with the Chairman of the Board, individual directors or board committees. Measures Adopted Communication Procedure ___________________________ __________________________ ___________________________ __________________________ (e) Modifications State, if any, the modifications made in the Annual/Special Stockholders' Meeting regulations during the most recent year and the reason for such modification: Modifications Reason for Modification ___________________________ __________________________ ___________________________ __________________________ ___________________________ __________________________ (f) Stockholders' Attendance Details of Attendance in the Annual/Special Stockholders' Meeting Held: Type of Date of Meeting % Attending % in Total % Meeting in Person Proxy Annual ___________________ _________ _______ ________ Special ___________________ _________ _______ ________ (g) Proxy Voting Policies State the policies followed by the company regarding proxy voting in the Annual/Special Stockholders' Meeting. Company's Policies Execution and acceptance of proxies _______________________________ Notary _______________________________ Submission of Proxy _______________________________ Several Proxies _______________________________ Validity of Proxy _______________________________ Proxies executed abroad _______________________________ Invalidated Proxy _______________________________ Validation of Proxy _______________________________ Violation of Proxy _______________________________ (h) Communication Strategy State the company's communications strategy to promote effective communication with its stockholders. Strategy Implementation ___________________________ __________________________ ___________________________ __________________________ ___________________________ __________________________ (i) Treatment of Minority Stockholders State the company's policies with respect to the treatment of minority stockholders. Policies Implementation ___________________________ __________________________ ___________________________ __________________________ ___________________________ __________________________ ___________________________ __________________________ (j) Sending of Notices State the company's policies on the sending of notices of Annual/Special Stockholders' Meeting. SIDTCa Policies Procedure ___________________________ __________________________ ___________________________ __________________________ ___________________________ __________________________ ___________________________ __________________________ (k) Definitive Information Statements and Management Report Number of Stockholders entitled to receive Definitive Information Statements and Management Report and Other Materials ________________________ Date of Actual Distribution of Definitive Information Statement and Management Report and Other Materials held by market participants/certain beneficial owners ________________________ Date of Actual Distribution of Definitive Information Statement and Management Report and Other Materials held by stockholders ________________________ State whether CD format or hard copies were distributed ________________________ If yes, indicate whether requesting stockholders were provided hard copies ________________________ Item 14. Investors Relations Program Describe the company's investor relations program Details (1) Objectives _____________________________ (2) Principles _____________________________ (3) Means of Communications _____________________________ (4) Investors Relations Offices _____________________________ (5) Performance _____________________________ Item 15. Internal Breaches and Sanctions Discuss the internal policies on sanctions imposed for any violation or breach of the corporate governance manual involving directors, officers, management and employees Violations Sanctions ___________________________ __________________________ ___________________________ __________________________ ___________________________ __________________________ ___________________________ __________________________ ___________________________ __________________________ Item 16. Corporate Social Responsibility Initiatives Discuss any initiative undertaken or proposed to be undertaken by the company. Initiative Beneficiary ___________________________ __________________________ ___________________________ __________________________ ___________________________ __________________________ ___________________________ __________________________ Pursuant to the requirement of the Securities and Exchange Commission, this Corporate Governance Report is signed on behalf of the registrant by the undersigned, thereunto duly authorized, in the City of ___________ on __________, 20 ____. SIGNATURES (Signature over Printed Name) (Signature over Printed Name) Chairman of the Board Chief Executive Officer (Signature over Printed Name) (Signature over Printed Name) Compliance Officer Independent Director SUBSCRIBED AND SWORN to before me this _________ day of __________20____ affiant(s) exhibiting to me their ___________, as follows: NAME/________ NO. DATE OF ISSUE PLACE OF ISSUE NOTARY PUBLIC Doc No. __________ Page No. _________ Book No. _________ Series of __________