Page 53 - SCG Code of Conduct

Transactions between Companies in SCG
Principle
Doing business or performing work which incur related transaction between SCG group of companies must abide by the laws and regulations issued by State agencies, the regulations and delegation of authority of SCG, as well as the principles and conditions prescribed in each locality.
9.1
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Guidelines
1. Carefullystudytheprinciples,processes,anddelegationofauthoritythatSCG has established for its businesses before taking action.
2. Refuse to follow the request to skip any activity in the process or ignore any activity that is required in normal process.
3. Complywithguidelinesandproceduresfortheapprovalofrelatedtransactions, connected transactions or transaction with possibility of conflicts of interest for highest benefits of SCG as stipulated by laws.
4. Carry out related transactions on fair and reasonable basis without transfer of benefits among companies in SCG.
Examples
01
Company A offers to buy motor wreck that is no longer in use from company B to use as tool for motor technician training while company B will not charge company A any expense since they are in SCG. Is this an acceptable practice?
Advice
It is unacceptable practice since purchase of assets between companies in SCG must be done based on market price or book value.
02
Can assignment of one employee of a company in SCG to work in another company on temporary basis be done verbally by management of the two companies?
Advice
No, it cannot. Assignment of an employee to work in another company in SCG must comply with the Human Resource Regulation with Cost Center specified for correct expense collection.