Our goal has always been to enhance our corporate value, maintain our sustainable long-term development and generate greater returns for our shareholders. In order to better achieve the above objectives, we have established good corporate governance practices following the principles of sincerity, transparency, openness and efficiency, and have implemented sound governance structure and measures. With respect to the key participants involved in the practice of good corporate governance, including shareholders, board of directors, management and staff, internal audit, external auditors and other stakeholders (including our customers, communities, peers, regulatory authorities, etc.), we have established and improved various policies, internal controls and other mechanisms.
We believe that corporate governance goes hand in hand with corporate culture. High standard of corporate governance is built on good corporate culture. Corporate governance principles and policies can only be applied effectively and consistently when a corporate culture that emphasizes honesty and integrity is built. Our core value is” Innovation, Conscientious and Win-win” and our goal is to achieve a harmonious development between enterprise and industry, enterprise and society, and enterprise and environment.
Our corporate governance practices in 2010 include:
Build up an effective quality management system
strengthened legal risk management and Technical Disclosure Risk management : we conducted an overall legal risk evaluation on our operations, further improved the management system and established legal review mechanism especially on areas such as market competition, corporate customer businesses and contract management. We also conducted internal trainings on various laws and regulations including Contract Law, Labour Contract Law of China.
Government and Public Relations: It is necessary for us to have close ties to the government and the local community. In order to preserve itself at the forefront of the agricultural technology industry, The company keeps close relations to the following entities:
China National Forestry Bureau
Zhejiang Province Forestry Administration
Lishui Local Bureau of Forestry
Additionally, the city government of Lishui and the more local district government have maintained close ties with Forest, and continues to support the Company. The CCP local party secretary and the Lishui mayor have come to inspect and tour the grounds and factory of Forest. They both gave their support to the Company, which has helped Forest increase its presence in the community and gain many new local customers.
Forest also has good relationships with other governmental departments, especially in trade and commerce. These include the China National Development and Reform Commission, the Zhejiang Provincial Development and Reform Commission and the Zhejiang Trade and Industry Bureau. All which fully support Forest and help sustain its status in the business community.
The Board of Directors and the Board Committees
The key responsibilities of the Board include, among other things, formulating the Group's overall strategies, setting management targets, monitoring internal controls and financial management and supervising the management's performance, while the day-to-day operations and management are delegated by the Board to the executives of the Company. The Board operates in accordance with established practices (including those relating to reporting and supervision), and is directly responsible for formulating the Company's corporate governance guidelines.
Board meetings are held at least once a quarter and as and when necessary.
The task of the Company's management is to implement the strategy and direction as determined by the Board, and to take care of the day-to-day operations and functions of the Company.
For the purpose of promoting honest and ethical conduct and deterring wrongdoing, the Company, we developed an employee code of conduct and an employee handbook to put all employees under specific obligations as to the manner in which they should deal with issues such as integrity, code of ethics and conflicts of interest.
The internal audit department of the Company conducts independent, objective supervision and assessment, and provides consulting services, in respect of the appropriateness, compliance and effectiveness of the Company's operational activities and internal controls by applying systematic and standardized auditing procedures and methods, and assists the Company in improving the effectiveness of corporate governance, risk management and control process, with an aim to increasing its corporate value, improving its operations, promoting its sustainable and healthy development as well as contributing to the achievement of its strategic objectives.
The Company has set up internal audit departments, which independently audit the business units of the Company and its operating subsidiaries. The internal audit departments have unrestricted access to all areas of the company’s business units, assets, records and personnel in the course of conducting their work.
Continuous Evolvement of Company Governance
We will closely study the development of company governance practices among the world's leading corporations, future evolution of the relevant regulatory environment and the requirements of the investors on an on-going basis. We will also review and enhance our corporate governance procedures and practices from time to time so as to ensure the long-term sustainable development of the Company.