1 MDB's 3-tiered governance means PM Najib as paramount chairman is responsible for all wrongdoing,as are the rest of the board of advisors
by Ganesh Sahathevan
The Parliament Of Malaysia's Public Accounts Committee (PAC) has all but pointed the finger of blame for the 1 MDB scandal at PM Najib,while simultaneously declaring him not responsible for the legion of wrongdoing it has uncovered.
However, 1 MDB's corporate governance structure means that the board of directors cannot be held solely responsible, the board of advisors that sits above it is also to blame.
The following are extracts from 1 MDB's website.The headline statement is taken to mean that all three levels ,the Senior Leadership Team, the Board of Directors, and the Board of Advisors, are all components of the the company's structure of governance.Any argument to the contrary which may be based on the ordinary understanding of corporate governance cannot hold against a statement by the company itself. Readers should be aware that 1 MDB made a conscious effort to incorporate the board of advisors into its governance structure and place it above the board of directors. By contrast ,the Government Of Singapore Investment Corporation has an international advisory board, that sits below the board of directors ,and has a specific subsidiary role.
The Parliament Of Malaysia's Public Accounts Committee (PAC) has all but pointed the finger of blame for the 1 MDB scandal at PM Najib,while simultaneously declaring him not responsible for the legion of wrongdoing it has uncovered.
However, 1 MDB's corporate governance structure means that the board of directors cannot be held solely responsible, the board of advisors that sits above it is also to blame.
The following are extracts from 1 MDB's website.The headline statement is taken to mean that all three levels ,the Senior Leadership Team, the Board of Directors, and the Board of Advisors, are all components of the the company's structure of governance.Any argument to the contrary which may be based on the ordinary understanding of corporate governance cannot hold against a statement by the company itself. Readers should be aware that 1 MDB made a conscious effort to incorporate the board of advisors into its governance structure and place it above the board of directors. By contrast ,the Government Of Singapore Investment Corporation has an international advisory board, that sits below the board of directors ,and has a specific subsidiary role.
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