Maxis Berhad Case Study

1.1 TOPIC AREA

Corporate governance is seen as the structure and relationship which enables a company to determine its’ performance and corporate direction (McRitchie, James, 2014).

Corporate governance sets out rules which direct the roles and movement of key personnel rather than processes. It is aimed at creating better management and lesser ethical or lawful problems. (Chron, Sam Ashe- Edmunds, 2013). Corporate governance sets out roles and responsibilities for different categories of stakeholders. These categories of stakeholders are the shareholders, management, employees, creditors, suppliers, customers.

A company incorporating corporate governance can be perceived as a good company from an outsiders’ point of view. This would attract

My P1 lecturer was very passionate when teaching this topic, which had me interested about the subject. Having some knowledge in this part can help me in my future especially when I start working.

1.3 ORGANIZATION BACKGROUND

I have chosen to undertake my research on Maxis Berhad. Maxis is a telecommunications company founded in the 1993 by Ananda Krishnan having based in Kuala Lumpur. It was formerly known as Binariang Berhad. In 1999 it was changed to Maxis Communications Berhad. Having a total number of subscribers of 6.4 million, Maxis provides a wide range of innovative mobile, fixed and international network services to its customers.

Maxis was listed in 2009 on the Malaysian stock exchange. Maxis is the largest telecommunications company in Malaysia, having a market share of 37.6 % in 2015. (Asia, Digital News, 2016)

1.4 REASONS FOR CHOOSING THE

We are satisfied with the services provided by Maxis. It is a very successful company which also learns the importance of contributing back to the society. With this said I am keen on how Maxis is managed and the extent of its effective and efficient governance structure.

The availability of information provided by Maxis is highly accessible on their website which reduces time in conducting this research. This is very helpful as I am able to cope with my ACCA studies and the research project submission dateline.

In 2016 the Minority Shareholder Watchdog Group (MSWG) ranked Maxis as one of the top 100 companies in Malaysia with good corporate governance disclosure. Maxis was ranked 50th. (Minority Shareholder Watchdog Group, 2016)

1.5 AIMS AND OBJECTIVES

The objectives of this research project are as follows:

1) To evaluate the quality of Maxis’ corporate governance policy

2) To identify the key stakeholders of the company

3) To analyze the impact of Maxis’ corporate governance on their stakeholders

The research questions are as follows:

1) How has Maxis complied with the Malaysian Code on Corporate Governance?

2) Is Maxis on par with its’ competitors in regards to corporate governance