Subsequent to negative reports by PricewaterhouseCoopers on poor corporate governance in Proton Holdings Bhd, our Malaysian Institute Of Corporate Governance (MICG) on August 2 advise that:

The basic principle of good corporate governance is that the board of directors should lead and control the corporation.

The PWC report showed a lacking in the four fundamental pillars of good corporate governance, which were:

·accountability,

·transparency,

·responsibility and

.fairness

In Proton and several other GLCs the  board of directors was not informed of many crucial decisions which were made by the CEO (chief executive officer) and management alone.The board was rendered totally ineffective by the lack of information from management.There was an almost total disconnection between the management and the board. The board obviously did not know what its management was doing where no information was given to the board.

( The Edge,Malaysia -2/8/06 )