GC_ONE REPORT 2021_ENG

BUSINESS OPERATION AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL REPORTS AND FINANCIAL STATEMENTS APPENDIX The nomination and appointment of the Chief Executive Officer and President (CEO). In case of vacancy of the CEO position, the Nomination and Remuneration Committee has an obligation to search for and select a candidate for the position from the list of Directors of the Company who possesses skills, experiences, professions and specific qualifications in areas necessary and suitable for the business operation of the Company in accordance with the Board Skills Matrix, which shall include knowledge, capability in business administration and experience in relevant fields, such as, energy, petroleum, petrochemical. Furthermore, the candidate must have leadership characteristics and has experience in being leader of a company well-regarded by the relevant business organizations. While the selection process must also take into account any conflicts of interest with the GC Group, and propose the candidate to the Meeting of the Board of Director for consideration and approval. Details of performance in relation to the nomination and appointment of Directors, Independent Directors and high-level Executives can be found under “Nomination, Development, and Performance Assessment of the Board of Directors.” (4) REMUNERATION FOR THE BOARD AND EXECUTIVES The Board of Directors. Details of remuneration of the Board of Directors can be found under “Meeting Attendance and Remuneration Payment to Each Board Member.” Executives. Details of remuneration of the Executives can be found under significant information relating to “Executives.” (5) DEVELOPMENT OF DIRECTORS AND EXECUTIVES The Board of Directors places great importance on seminar attendance as a way to enhance Directors’ knowledge and competence to enable them to enhance their duties as well as to prepare for any internal rotations and succession to the CEO position and other roles in the top management. The Board of Directors also encourages their participation in pertinent training courses and has prescribed the potential assessment of top executives to enhance their preparedness for executive-level duties. Key development initiatives can be summarized under “Development of Directors, Executives, and Company Secretary”. (6) ASSESSMENT OF DIRECTORS’ PERFORMANCE The Board of Directors has prescribed annual Board performance assessments to enable Directors to review their performance and review problems and obstacles during the year. There are three types of performance assessment, namely group assessment, self-assessment, and peer-assessment (assessing another Director). Furthermore, new Board KPIs have also been established according to the Thai Corporate Governance Code for Listed Companies 2017 (CG Code) and the international criteria of the Dow Jones Sustainability Indices (DJSI), comprising of four (4) aspects, which are, the Company’s performance, the Board’s group assessment results, Directors’ meet ing attendance, and Directors’ engagement during Board meetings. Additionally, group assessment and self-assessment have been prescribed for the Company’s Sub-committees, namely the Audit Commi ttee, the Nominat ion and Remunerat ion Committee, the Corporate Governance and Sustainability Committee, and the Risk Management Committee. The assessment results and suggestions are subsequently presented to the Board of Directors and used to develop guidelines for practically optimizing the Board’s performance. The assessment results are also disclosed in the Form 56-1 One Report and used by the Nomination and Remuneration Committee as a factor in the determination of Directors’ annual remuneration in addition to the Company’s performance. The detai ls are provided under “Nominat ion, Development, and Performance Assessment of the Board of Directors.” (7) GOVERNANCE OF GC AND GC GROUP The Company grows in the petrochemical and chemical industry and engages in investment and joint venture expansion in various countries both by itself and through its subsidiaries, joint ventures, affiliates and others, as detailed under “Business Operation and Performance”. The Board of Directors has approved the implementation of governance guidelines for the management of GC Group which are in line with GC Business Principle, as described in details under “Governance of Subsidiaries and Affiliates”. POLICY AND PRACTICES FOR THE SHAREHOLDERS AND STAKEHOLDERS The business operation of the Company involves various groups of stakeholders ranging from shareholders, customers, business partners, creditors, competitors, government sectors and employees to communities, society and environment. Each stakeholder has different needs and, therefore, the Board of Director has established policies and good practice guidelines relating to responsibilities towards each stakeholder of the Company in accordance with the requirements of each group of stakeholders and included them in the 119

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