was seen to be effective in ensuring the integrity of the Company is aligned with regulatory requirements, internal standards and best practices. The Board was committed to its fiduciary duties and assumed the core responsibilities of reviewing and monitoring the Group’s strategic plan, overseeing and evaluating the conduct of the Group’s business and establishing sound risk management and internal control frameworks for the Group. Moving forward, the Board recognises the need to establish a clear and well-defined succession plan for both the Board and T op Management, ensuring that the composition, structure and diversity is in line with TNB’s strategic direction. Additionally, the Board recognises the necessity of refining processes to enhance the efficiency and effectiveness of both the Board and its Committees, actively seeking opportunities for continuous improvement.BOARD LEADERSHIP & EFFECTIVENESS CREATING VALUE THROUGH STRONG GOVERNANCE Sec 4 161 BOARD LEADERSHIP & EFFECTIVENESS Responsibility and Conduct Process and Administration Composition • Business strategy and governance and implementation oversight • Risk management and integrity • Implementation oversight and monitoring of strategies and policies • Board Charter and Committee TORs • Agenda and frequency of meetings • Sufficient information availability and on a timely basis • Culture and dynamics • Diversity • Competencies of the members • Board and Committee compositions T op Management’s remuneration package comprises three (3) distinct components: the base salary, fixed allowances and benefits, the Short Term Incentive (STI) and the Long Term Incentive Plan (LTIP). The base salary is set competitively, considering the scope of work, experience, and anticipated performance. Fixed allowances are separate from the base salary and are granted for specific cash benefits. The STI, contingent on annual performance, is disbursed as bonuses, contingent upon the Company’s profitability and the performance of T op Management. Evaluation criteria include