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Corporate Governance Report

During the year, the internal audit department conducted reviews of the effectiveness and adequacy of the
internal controls over sale and purchase cycles, inventory, payroll and fixed assets management of the Group.
Recommendations for internal control were communicated with management and proper improvement plans
had been implemented after due consideration.

The Company holds at least two audit committee meetings in a financial year, with the participation of
external auditors. External auditors prepare audit committee reports and discuss the issues with the audit
committee. Deficiencies or weaknesses in internal control (if any) are identified and appropriate corrective
actions are to be taken.

The Board evaluates whether the information is inside information and requires disclosure according to the
requirements of Securities and Futures Ordinance and the Listing Rules. Inside information shall be handled
strictly confidential on a need-to-know basis and shall be disclosed to the public as soon as reasonably
practicable.

DIRECTOR’S TRAINING

During the year under review, all directors have participated in professional training relevant to business
developments and regulatory updates. All directors have provided the Company with their records of training
which they received during the financial year.

COMMUNICATION WITH SHAREHOLDERS

In order to allow shareholders and potential investors to make enquiries and provide comments in an
informed manner, the Company has established a Shareholders’ Communication Policy which sets out the
ways shareholders and potential investors may communicate with the Company.

Shareholders and potential investors may send written enquiries to the Company Secretary of the Company
by email to investor.enquiry@alco.com.hk, by fax to (852) 2597 8700 or by mail to 11/F, Zung Fu Industrial
Building, 1067 King’s Road, Quarry Bay, Hong Kong.

SHAREHOLDERS TO CONVENE A SPECIAL GENERAL MEETING

Under the Company’s Bye-laws, shareholders holding not less than one-tenth of the paid-up capital of the
Company can, by deposit a written requisition signed by the shareholders concerned to the Board or the
Company Secretary to the principal place of business of the Company at 11/F, Zung Fu Industrial Building,
1067 King’s Road, Quarry Bay, Hong Kong, require a special general meeting to be called by the Board for
the transaction of any business specified in such requisition.

CONCLUSION

The Board believes that good corporate governance can safeguard the effective allocation of resources and
protect shareholders’ interest. The management will try to maintain, strengthen and improve the standard and
quality of the Group’s corporate governance.

20 ALCO HOLDINGS LIMITED ANNUAL REPORT 2017