Should non-executive directors own shares?

SHOULD a non-executive director (NED) of a listed company hold shares in that company? This question comes up regularly at Annual General Meetings (AGMs) and the answer is not straightforward.

Yes, they should:

In Singapore , Guideline 8.3 of the Code of Corporate Governance (Singapore Code) states that the Remuneration Committee should consider implementing schemes to encourage NEDs to hold shares so as to better align their interests with those of other shareholders.

Similarly, the Si…