According to reports, Sime Darby Bhd aims to set-up subsidiary boards by the first month of next year for the different business sections, which will include independent directors as well as industry experts.

In a statement, the company said that the step is directed at offering a culture of ownership and accountability across the group, improving the levels of control and increasing the board’s oversight of the division’s workings.

As per the company’s statement, “To help improve the business process flow and strengthen governance, the Sime Darby board has agreed in principle to the concept of establishing subsidiary boards for the different business segments.”

The statement was issued by Sime Darby on Bursa Malaysian in a reply to demand more information after the completion of forensic audits on number of projects of the energy as well as utilities division.

It said upholding remediation actions at the energy and utilities segment consisted of realignment of the organizational chart to perk up risk management, while initiation of operational improvements, comprising meliorating project bidding processes, tightening of control over project costs and improving of project management.

The company said, “Datuk Azhar Abdul Hamid, special adviser to its acting president and group chief executive, has left the group with effect from Sept 1, 2010.”