Cg Code Of Corporate Governance

Introduction
Corporate governance is a system that ensure companies to be directed and controlled (Cadbury 1992). Among all segments of the corporate governance, boards of directors are quiet essential, because the board have the obligation to governance the whole company and draw up long-term scheme to make it success (ppt wk1 pg21).
As for the Corporate Governance Code (CG code), it was first reported in UK, which aimed to regulate the conduct of directors and investors (ppt wk2 pg20). Instead of being adopted as statutory rules for listing on stock exchange market, the CG code only can be regarded as a guidance for corporates, which lacks of statutory backing (Should the Hong Kong Code on Corporate Governance Practices Be Given Statutory Backing?). However, the CG code provide a comprehensive method to evaluate listing companies at shareholder 's point of view,

It mainly engaged in operating coals and related mining activities and services. According to its annual report (2015), Mr Chan Nap Kee (Joseph) is acting as chief executive officer (CEO), who cooperates with another two executive directors and four independent non-executive directors (INEDs).
In the Corporate Governance Report of Kaisun Energy, the company state that they has compliance with most of the requirements in the CG Code, and explain why there is a non-compliance. Firstly, the report will analyse corporate governance of Kaisun Energy by evaluating whether they comply the code both formally and effectively. Then, all the issues, as well as potential risks will be analysed according to academic theories. Moreover, suggestion will be provided to improve the effectiveness of corporate