9. MANAGEMENT

9.1 Management Structure

  The Company has 4 sets of committees; i.e. the Company’s Board of
  Directors, the Audit Committee, Governing Board and Investment
  Committee. Details of each committee are as follows:

Board of Directors

  The Company’s Board of Directors as at 31 December 2006 consists of
  the following:

  1. Mr. Chai Sophonpanich Chairperson

  2. Mr. Chanvit Tanphiphat, MD Vice Chairperson

  3. Mrs. Linda Lisahapanya Director, Managing Director

  4. Mr. Curtis John Schroeder Director, Group Chief Executive Officer

  5. Mr. Dhanit Dheandhanoo, MD Director, Chairperson of the Medical
  Director

  6. Mr. Chatri Sophonpanich Director

  7. Mr. Anant Tejavej, MD Director

  8. Mr. John Yangpichitt, MD Director

  9. Ms. Khun Sawanya Dej-Udom, MD Director

  10. Mrs. Kulathida Sivayathorn Director

  11. Mr. Chong Toh Director

  12. Sultan Ahmed Bin Sulayem Director

  13. Ms. Sophavadee Uttamobol Director, Chairperson of Audit Committee

  14. Mr. Soradis Vinyaratn Director, Member of Audit Committee

  15. Mr. Boonpakorn Chokwathana Director, Member of Audit Committee

  Ms. Suthinee Tevidhaya is the secretary of the Board of Directors.

Legal Binding of the Company

  Any two authorized directors, except Mr. Chatri Sophonpanich, Mrs.
  Kulathida Sivayathorn and Mr. Chong Toh, sign and affix the Company’s
  seal.

Duties and Responsibilities of Board of Directors:

1.  To perform duties in accordance with the laws, the Company’s
    objectives and regulations, and resolutions of the shareholders’
    meetings in good faith and with care for the best interest of the
    Company

2.  To establish the Company’s vision, direction and strategies

3.  To endorse major strategies and policies, including objectives,
    business plans, financial targets, operation plans and capital
    expenditure budgets, as proposed by the management; and to monitor
    and ensure the implementation and follow up on the outcome

4.  To ensure proper systems for corporate accounting, financial
    reporting and financial auditing; to ensure that the Company has an
    effective internal control and internal audit system

5.  To approve quarter and annual financial reports; to ensure that they
    are correct, accurate, credible, in compliance with Generally
    Accepted Accounting Standards and report to shareholders in the
    annual report

6.  To supervise and approve, as the case may be, and to ensure
    transparency in the transactions which are connected transactions
    and may cause conflict of interest

7.  To have the authority to enter into any transaction on behalf of the
    Company, which requires two signatures of any authorized directors
    and affixing of the Company’s seal

Audit Committee

  The Company’s Audit Committee as at 31 December 2006 comprises the
  following:

  1. Ms. Sophavadee Uttamobol Chairperson of the Audit Committee

  2. Mr. Soradis Vinyaratn Member of the Audit Committee

  3. Mr. Boonpakorn Chokwathana Member of the Audit Committee

  Mrs. Tawichar Tansathit is the secretary of the Audit Committee.

Duties and Responsibilities of the Audit Committee

  The Company’s Audit Committee has the scope of duties and
  responsibilities to report to the Board of the Directors as follows:

1.  To review the financial report of the Company to be in accordance
    with the accounting standards, and ensure that the financial
    reporting is sufficient and reliable, before being presented to the
    Board of Directors

2.  To consider and recommend the appointment of external auditors and
    audit fees

3.  To ensure that the Company has adequate and effective internal
    control system

4.  To ensure the Company’s compliance with regulations and other
    relevant laws

5.  To ensure that there is no conflict of interest arising from
    connected parties

6.  To prepare the report of the Audit Committee to be disclosed in the
    Company’s annual report; the report must be signed by the
    Chairperson of the Audit Committee

7.  To be responsible for any other matters assigned by the Board of
    Directors.

Other responsibilities:

1.  To consider the budget and human resources of the internal audit
    office

2.  To coordinate with the Company’s internal auditors regarding the
    internal control system, audit plans and audit programs, and to
    evaluate the results of the internal auditing of various operations
    of the Company, according to the generally accepted methods and
    standards

3.  To appoint, dismiss, transfer or terminate the employment of
    director (chief) of internal audit.

Governing Board

  The Company’s Governing Board for the Bumrungrad Hospital in Bangkok
  as at 31 December 2006 comprises the following:

  1. Mr. Chanvit Tanphiphat, MD Chairman

  2. Mr. Mack Banner Secretary

  3. Mr. Chong Toh Member

  4. Mr. Karoon Mekanontchai, MD Member

  5. Mr. Mondej Sookpranee, MD Member

  6. Ms. Oradee Chandavasu, MD Member

  7. Mr. Rujapong Sukhabote, MD Member

  8. Mr. Sira Sooparb, MD Member

  9. Ms. Sophavadee Uttamobol Member

  10. Mr. Vatana Supromajakr, MD Member

  11. Mr. Visuit Vivekaphirat, MD Member

  12. Mr. Watcharaphong Saechere, MD Member

  13. Mr. Apichati Sivayathorn, MD Ex officio

  14. Ms. Janice Chan Mun Yee Ex officio

  15. Mrs. Khor Lee Chan Ex officio

  16. Mr. Sinn Anuras, MD Ex officio

Duties and Responsibilities of the Governing Board

  The Governing Board has the objective to recommend and implement the
  Company’s Hospital Policy, promote patient safety and performance
  improvement, provide quality patient care and provide for
  organizational management and planning of the Hospital. The Governing
  Board has the scope of duties and responsibilities to report to the
  Board of the Directors as follows:

1.  To organize physicians and other practitioners granted clinical
    privileges at the Hospital into a medical staff under Professional
    Staff Bylaws, Rules and Regulations approved by the Governing Board

2.  To appoint and reappoint Medical Staff members and assign clinical
    privileges in accordance with Professional Staff Bylaws, Rules and
    Regulations

3.  To establish and amend, together with the Medical Staff, and approve
    Professional Staff Bylaws, Rules and Regulations which set forth its
    organization and governance

4.  To assign to the Medical Staff reasonable authority to ensure
    appropriate professional care to Hospital patients, including to
    direct that all reasonable and necessary steps be taken by the
    Medical Staff and Hospital administration for meeting JCIA and HA
    accreditation standards and complying with applicable laws and
    regulations.

Investment Committee

  The Company’s Investment Committee as at 31 December 2006 comprises
  the following:

  1. Mr. Chai Sophonpanich Chairperson

  2. Mrs. Linda Lisahapanya Member

  3. Mr. Chong Toh Member

  4. Ms. Sophavadee Uttamobol Member

  5. Mr. Curtis John Schroeder Member

  6. Mr. Dennis Brown Observer

  7. Mr. Carl Stanifer Observer

Duties and Responsibilities of the Investment Committee

  To consider investment opportunities, appropriateness and feasibility
  studies, including the structure of the Company’s investment projects
  both within the country and in the region.

Management

  The Company’s Management as at 31 December 2006 consists of the
  following:

  1. Mrs. Linda Lisahapanya Managing Director

  2. Mr. Dhanit Dheandhanoo, MD Chairperson of the Medical Director

  3. Mr. Curtis John Schroeder Group Chief Executive Officer

  4. Mr. Sinn Anuras, MD Group Medical Director

  5. Mr. Karoon Mekanontchai, MD Medical Director

  6. Mrs. Chamaree Chuapetcharasopon, MD Senior Associate Medical
  Director

  7. Mr. Carl Stanifer Group Chief Financial Officer and Director of
  International Development

  8. Mr. Dennis Brown Group Chief Operating Officer and Chief Executive
  Officer, Bumrungrad International Limited

  9. Mr. James Matthew Banner Chief Executive Officer

  10. Mrs. Khor Lee Chan Chief Financial Officer

  11. Ms. Janice Chan Mun Yee Chief Operating Officer

9.2 Election of Directors and Management

  The Company does not have a nominating committee for the selection of
  directors and management. The election of any members of the Board of
  Directors must be approved by the shareholders’ meeting, in accordance
  with the following rules and principles:

1.  Each shareholder has one vote for one share.

2.  The election of directors may be either by voting for each
    individual director, or by voting for a group of directors,
    whichever way the shareholders’ meeting deems appropriate. For each
    resolution, each shareholder must exercise all of his/her votes for
    one individual director or for one group of directors. Votes by each
    shareholder may not be split between any directors or any groups of
    directors.

3.  The election passes with the majority of the votes. If the number of
    votes is equal, the chairperson of the meeting has the final vote.

  The process for selection of independent directors is the same as the
  selection of directors and management. The fundamental qualifications
  of independent directors are as follows:

1.  Is an external director with no management or employment position in
    the Company, subsidiaries, affiliates or related companies

2.  Is not a management of the Company, subsidiaries, affiliates or
    related companies

3.  Does not have direct or indirect benefits or interests, either
    financially or managerially, in the Company, subsidiaries,
    affiliates or related companies

4.  Is independent from the major shareholders, management and related
    parties

5.  Is able to protect the interest of every shareholder fairly

6.  Is able to prevent transactions with conflict of interest between
    the Company and related parties

7.  Holds shares accounting for not more than 5 percent of paid-up
    capital of the Company, subsidiaries, affiliates or related
    companies (Including shares held by related parties).

9.3 Remuneration of Directors, Audit Committee and Management

Directors’ Remunerations and Audit Committee’s Remuneration

  Directors’ remunerations and Audit Committee’s remunerations for the
  year ended 31 December 2006 for 15 directors are as follows:

  -----------------------------------------------------------------------------------------------------------------------------------------
                      Director’s                                                       Audit Committee’s                     Total
                      Remuneration                                                     Remuneration                          Remuneration
  ---- -------------- ---------------------- -------------- -------------- ----------- ---------------------- -------------- --------------
       Name           Number of Meetings     Annual         Meeting        Total       Number of Meetings     Meeting        
                      Attending/Invitation   Remuneration   Remuneration               Attending/Invitation   Remuneration   

  1    Mr. Chai       6/6                    280,000        240,000        520,000                                           520,000
       Sophonpanich                                                                                                          

  2    Mr. Chanvit    6/6                    240,000        180,000        420,000                                           420,000
       Tanphiphat, MD                                                                                                        

  3    Mrs. Linda     6/6                    200,000        150,000        350,000                                           350,000
       Lisahapanya                                                                                                           

  4    Mr. Curtis     6/6                    200,000        150,000        350,000                                           350,000
       Schroeder                                                                                                             

  5    Mr. Dhanit     5/6                    200,000        125,000        325,000                                           325,000
       Dheandhanoo,                                                                                                          
       MD                                                                                                                    

  6    Mr. Chatri     1/6                    200,000        25,000         225,000                                           225,000
       Sophonpanich                                                                                                          

  7    Mr. Anant      5/6                    200,000        125,000        325,000                                           325,000
       Tejavej, MD                                                                                                           

  8    Mr. John       6/6                    200,000        150,000        350,000                                           350,000
       Yangpichitt,                                                                                                          
       MD                                                                                                                    

  9    Ms. Sawanya    6/6                    200,000        150,000        350,000                                           350,000
       Dej-Udom, MD                                                                                                          

  10   Mrs. Kulathida 5/6                    200,000        125,000        325,000                                           325,000
       Sivayathorn                                                                                                           

  11   Mr Chong Toh   5/6                    200,000        125,000        325,000                                           325,000

  12   Sultan Ahmed   0/6                    120,000        0              120,000                                           120,000
       Bin Sulayem*                                                                                                          

  13   Ms. Sophavadee 6/6                    200,000        150,000        350,000     5/5                    200,000        550,000
       Uttamobol                                                                                                             

  14   Mr. Soradis    6/6                    200,000        150,000        350,000     5/5                    125,000        475,000
       Vinyaratn                                                                                                             

  15   Mr. Boonpakorn 6/6                    200,000        150,000        350,000     5/5                    125,000        475,000
       Chokwathana                                                                                                           

                                             3,040,000      1,995,000      5,035,000                          280,000        5,485,000
  -----------------------------------------------------------------------------------------------------------------------------------------

  * Sultan Ahmed Bin Sulayem was appointed the Company’s director by the
  Extraordinary General Meeting of Shareholders No. 1/2006 held on 15
  May 2006

  Directors’ remuneration represents the benefits paid to the Company’s
  directors, exclusive of salaries and related benefits payable to the
  management. The above remunerations have been approved by the
  shareholders.

Remunerations of Management

  In 2006, the total remuneration of the 11 executives of the Company
  and its subsidiaries amounted to Bt 121.8 million. The remuneration
  represents the salaries and benefits paid to the management.

9.4 Corporate Governance

  The Company realizes the importance of good corporate governance, and
  is committed to follow the Principles of Good Governance Guidelines
  provided by the Stock Exchange of Thailand as follows:

1. Corporate governance policy 

  The Board of Directors sees the importance of good corporate
  governance, and has the intention to follow such policies for the
  long-term benefits of shareholders, under the regulations and laws and
  business ethics.

  The Company is currently in the process of drafting its Corporate
  Governance Manual and Code of Ethics. The draft is expected to be
  completed and to be proposed to the Board for approval and implemented
  in 2007.

2. Shareholders’ rights

  The Company acknowledges the importance of all shareholders’ rights,
  including equitable treatment of major and minority shareholders. The
  Company also emphasizes on providing correct, timely, equal and
  transparent information sufficient for all shareholders and investors
  to make their investment decision.

  For every shareholder meeting, the Company sends invitation letters to
  shareholders in advance to inform of the meeting agenda and Board of
  Directors’ opinion on each agenda, with supporting documents and
  information sufficient to facilitate shareholders in making their
  decisions. If the shareholders cannot attend, the shareholders have
  the right to authorize a person or an independent director as their
  proxy to attend the meeting on their behalf.

  During the shareholders’ meeting, the Chairman of the Meeting gives
  all shareholders the right to comment, ask questions or give opinions
  and suggestions on all agendas. The Chairman and management see the
  importance of every question and give precise and clear answers. The
  Company also has minutes of the shareholders meeting which are correct
  and complete available for shareholders to verify.

3. Stakeholders’ rights

  The Company recognizes the importance of the rights of each
  stakeholder, and intends to interact with each party fairly. The
  important stakeholders are as follows:

  Customers / Patients The Company provides patient care in an ethical
  manner, and at the best quality possible. The hospital’s Ethics
  Committee protects patients’ rights. In addition, the Company has a
  department to monitor and improve the quality of the care provided to
  all patients, taking into consideration patients’ needs and
  suggestions.

  Suppliers / Contractors The Company abides by the contracts with all
  suppliers and contractors and ensures timely payment to all suppliers
  and contractors.

  Employees The Company believes that its employees are valuable
  resources and therefore gives all employees the equal opportunity in
  their employment. The Company has the policy to provide employees with
  appropriate compensation and to develop human resources through
  continuous education and regular training programs.

  Competitors The Company competes with competitors fairly and in
  accordance with the rules and regulations. The Company focuses on
  competition in the area of quality and efficiency of the service for
  the best benefit of customers and patients.

  Creditors The Company strictly abides by loan agreements, loan
  covenants and ensures timely payments.

  Community The Company has social responsibilities, including
  environmental responsibilities, and has set up an environmental policy
  to communicate to employees its views on environment preservation and
  encourages employees to help protect global environment. The Company
  is committed to controlling environmental impact to neighboring
  communities and efficiently utilizing natural resources. In addition,
  the Company has various activities to support the community through
  its Bumrungrad Hospital Foundation, including the UNICEF Youth Career
  Development program to develop nurse aids and the “80 Hearts Project”
  for heart disease children.

4. Shareholders’ meetings

  The Company understands the rights of every shareholders, including
  major and minority shareholders. The Board of Directors therefore sees
  the importance of shareholders’ meetings and emphasizes on giving
  equal and transparent information sufficient for shareholders to make
  their decision on each of the agenda. In the 2006 annual general
  shareholders’ meeting, 12 directors attended the meeting to provide
  information and details to shareholders.

  In every shareholders’ meeting, in addition to the Board of Directors,
  which includes the Chairperson of Audit Committee, management of the
  Company also attended the meeting to answer questions that
  shareholders may have. The Chairperson of the meeting encouraged and
  gave all shareholders equal opportunity to ask questions, express
  their views, and make suggestions without limitation on the time of
  the meeting. The Company has recorded the important issues raised in
  the minutes of the meeting.

5. Leadership and vision

  The Board of Directors comprises of qualified directors with extensive
  experience in various fields. Every director participates in the
  setting of the Company’s vision, mission, strategies, goals, business
  plans and budgets. The Board of Directors also ensures that the plans
  are carried out efficiently and effectively, to ensure the
  maximization of the Company’s value and stability to shareholders. The
  Board of Directors meets quarterly to review the management’s report
  on the Company’s operations.

  Moreover, the Board of Directors has set roles and responsibilities
  for various committees, including internal control system and internal
  audit, as well as has communicated such roles and responsibilities to
  all levels of management and employees.

6. Conflict of interest

  To prevent any conflicts of interest, the Board of Directors pays
  special attention to the consideration of transactions which conflicts
  of interest may arise, and to related parties transaction, as well as
  strictly follows the Stock Exchange of Thailand rules and regulations,
  with pricing and other conditions on an arms-length basis. Details of
  the transactions, including amount, contracting party, and reasons for
  entering into the transactions are disclosed in financial statements,
  annual report, and the 56-1 filing.

7. Business ethics

  The Company’s mission statement is “We provide world class healthcare
  with care and compassion”. In addition, the Company has guiding
  principles, which are communicated to all employees as follows:

1.  We treat our patients as we would our family members.

2.  We embrace cultural diversity.

3.  We are trusted, honest and ethical in all our dealings.

4.  We work as a team.

5.  We continually improve the quality of everything we do.

6.  We strive for a happy working environment with respect and mutual
    trust.

7.  We encourage professional development and innovation through a
    constant process of learning.

8.  We provide efficient healthcare to bring value to our external and
    internal customers.

9.  We are a good corporate citizen.

  All employees are expected to observe and follow these guiding
  principles.

8. Balance of power in the Board of Directors 

  The Company has 3 directors who are management:

1.  Mrs. Linda Lisahapanya

2.  Mr. Dhanit Dheandhanoo, MD

3.  Mr. Curtis John Schroeder

  There are 9 directors who are not management:

1.  Mr. Chai Sophonpanich

2.  Mr. Chanvit Tanphiphat, MD

3.  Mrs. Kulathida Sivayathorn

4.  Mr. John Yangpichitt, MD

5.  Ms. Khun Swanya Dej-Udom, MD

6.  Mr. Anant Tejavej, MD

7.  Mr. Chong Toh

8.  Mr. Chatri Sophonpanich

9.  Sultan Ahmed Bin Sulayem

  The Company has 3 directors who are independent directors and members
  of the Audit Committee:

1.  Ms. Sophavadee Uttamobol

2.  Mr. Soradis Vinyaratn

3.  Mr. Boonpakorn Chokwathana

  The 3 independent directors account for 20% of total Board of
  Directors. The Company plans to increase the number of independent
  directors to not less than 1/3 of all directors in the future.

9. Aggregation and segregation of positions

  Chairperson of the Board of Directors is not the same person as the
  Managing Director, in order to segregate the duties of policy setting
  and control from the day-to-day management.

10. Directors and management remuneration

  The Company does not yet have a compensation committee. The directors’
  remunerations are in the form of annual remunerations and meeting
  fees, which have already been approved by the shareholders.

  Management’s remunerations are in the form of salaries and bonus, and
  are based upon both the Company’s performance and individual
  performance.

  The details of remunerations for directors and management are in
  Section Remuneration of Directors, Audit Committee and Management.

11. Board of Directors’ meetings

  The Board of Directors has a regular meeting every quarter, and has
  extraordinary meetings as necessary. The Secretary to the Board
  prepares and sends invitation letters to directors at least 7 days in
  advance, together with all the agendas of the meeting and other
  necessary documents, so that the directors will have sufficient time
  to study the information. Normally, each meeting takes approximately 2
  hours. In 2006, there were 6 meetings, with details of the attendance
  of each director in the table in Section Remuneration of Directors,
  Audit Committee and Management.

  The Company has documented minutes for every board meeting, which are
  approved at the next board meeting. The Company keeps the minutes
  available for directors and relevant persons’ verification.

12. Committees

  The Board of Directors has set up committees to assist with specific
  tasks, including the following:

  Audit Committee, consisting of 3 independent directors appointed by
  the Board of Directors. In 2006, Audit Committee held 5 meetings and
  reported their meeting results to the Board of Directors. The Audit
  Committee members and their responsibilities are detailed in
  Management Structure Section.

  Governing Board, appointed by the Board of Directors, consisting of 3
  directors, 3 management and 7 physicians. In 2006, Governing Board
  held 6 meetings. The Governing Board members and their
  responsibilities are detailed in Management Structure Section.

  Investment Committee, appointed by the Board of Directors, consisting
  1 independent director, 2 non-executive directors and 2 executive
  directors. In 2006, the Investment Committee held 2 meetings. The
  Investment Committee members and their responsibilities are detailed
  in Management Structure Section.

  The Company does not yet have a compensation committee.

13. Internal control and internal audit systems

  The Company has given importance to internal control and internal
  audit systems, by establishing an internal audit unit, with the
  primary objective to support and develop effective internal control of
  the organization, in order to minimize operational risks, and to
  ensure quality of the work process and operations. Emphasis is on
  effectiveness and efficiency, and appropriateness of expenses and
  costs, including operations in accordance to the policy and/or
  requirements of the management.

  To ensure the independence of the internal audit unit and the balance
  of power, the internal audit unit reports directly to the Audit
  Committee.

14. Directors’ report

  Report of the Accountability of the Board of Directors to the
  Company’s Financial Reports

  The Board of Directors is responsible for the consolidated financial
  statements of the Company and its subsidiaries and information as
  appears in the annual report. The financial statements have been
  prepared in accordance with generally accepted accounting principles,
  using appropriate and consistent accounting policies. The financial
  statements have been prepared with caution and have been evaluated for
  appropriateness of the overall presentation of the financial
  statement. There was sufficient information disclosure in the notes to
  the financial statements.

  The Board of Directors has set up an efficient and effective internal
  control system to ensure that all accounting transactions have been
  recorded correctly and comprehensively, and that there has been a
  record-keeping system of assets to protect the Company from any
  material fraud or damage.

  The Board of Directors has the opinion that the overall internal
  control system of the Company was at a satisfactory level, which
  resulted in confidence in the reliability of the financial statements
  of the Company and its subsidiaries as at 31 December 2006.

15. Relations with investors

  The Board of Directors sees the importance of the disclosure which is
  correct, complete, reliable, timely, transparent and dispersed,
  including the disclosure of financial information and general
  information which are important to investors’ decision making process.
  The Company also ensures that the disclosures are in accordance with
  the Securities and Exchange Commission, Thailand and Stock Exchange of
  Thailand’s rules and regulations.

  The Company has various ways of communicating with investors and
  shareholders, including participating in roadshows and investor
  conferences, organizing quarterly analyst meetings, arranging investor
  meetings and company visits, and providing an investor relations
  section website with updated information available both in Thai and
  English.

  The Company has assigned personnel to be responsible for investor
  relations activities to facilitate interested investors and
  shareholders in this regard. Interested investors or shareholders can
  inquire regarding the Company’s information at the following:

  Investor Relations

  Telephone: 0 –2667- 2010

  Email address: ir@bumrungrad.com

  Website: www.bumrungrad.com

9.5 Internal Control of Information

  The Company has the policy regarding management using internal
  information for personal benefits as follows:

  1. According to Company’s rules and regulations, directors are
  required to inform the Company immediately in the event that they may
  have any interests in any transactions being entered into by the
  Company, or that there is an increase or decrease in their holding of
  shares or bonds of the Company or subsidiaries.

  2. Directors and management must prepare and disclose securities
  holding report to the Securities Exchange Commission within the
  required time.

  Penalties for violation include the following:

  1. Verbal warning for corrective action

  2. Report to shareholders’ meeting for consideration

  3. Compensation for any damages

  4. Disclosure to Securities and Exchange Commission and The Stock
  Exchange of Thailand

9.6 Personnel

  The Company has total staff of 3,130 persons, and can be divided as
  follows:

  Nursing 1,826

  Technicians 361

  Support staff 943

  The compensation of the Company’s staff are as follows:

  Salaries Baht 663,367,220

  Bonus Baht 158,022,510

  Provident Fund Baht 21,821,460

  Other Benefits Baht 247,559,170

  The Company understands the importance of its human resources and has
  a policy for human resources development through its training programs
  as follows:

  1. New employees orientation: every new employee must attend an
  orientation for department / division / unit and must receive
  on-the-job training.

  2. Mandatory training: training program on subjects which every
  employee must know and participate.

  3. Division / unit training: training program to improve specific
  skills and expertise for each department/ division/ unit. This
  includes both internal and external training.

  4. Managerial training: for managers to be able to manage his/ her
  department / division effectively.