The Effectiveness of Corporate Governance Towards Improving Khee San Berhad

Ong, Kimberly Sweet Ee (2026) The Effectiveness of Corporate Governance Towards Improving Khee San Berhad. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

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Abstract

The objective of this study is to evaluate the effect of Corporate Governance on Khee San Berhad's performance and sustainability, with a particular focus on the performance of the Board Composition of Khee San Berhad. These are the primary areas of Corporate Governance:- (1) Board Composition – Lack of Women Directors on Board (2) Board Composition – The fever of Chairman impact on the decision-making (3) Board Composition – Independency of Directors (at least half of the Board of Directors) (4) Shareholders/ Stakeholders Engagement – To strengthen the relationship and build trust among shareholders or stakeholders in the Company. Khee San Berhad experienced significant issues with governance, accountability, and strategic direction after being classified as Practice Note 17 due to financial distress. The purpose of this paper is to analyse the influence of board composition elements, including the proportion of independent directors, diversity of expertise, leadership structure, and board size, on strengthening oversight and decision-making (Spira, L. F., 2022). Moreover, to enhance the relationship with shareholders after the issue's history and reprimand by the authorities. Based on the study's recommendations, Khee San Berhad is advised to have a well-balanced and independent board that enhances transparency, mitigates agency problems, and restores investor confidence. The proposed policies have the potential to improve risk management and increase the effectiveness of corporate restructuring strategies. The findings point to the importance of strong ethical leadership and regulatory compliance in supporting governance reforms in order to achieve long-term impact. Overall, having an effective board composition is pivotal in strengthening Corporate Governance and aiding in the recovery and future growth of Khee San Berhad.