The search for independence

IN a recent forum, the non-executive chairman of a Singapore-listed company spoke about the search for independent directors (IDs). He said that while a search process can expand the pool of ID candidates, it is "still good to know a person so that you have some assurance of the type of character you are dealing with".

He further remarked that with more than half of businesses in Singapore being owned by a substantial shareholder, it will be "very awkward if an ID's mind-set is to challenge the management". "They will see you as a necessary evil because they have to comply with the Code . . . (of corporate governance). The ID needs to prove that he or she can be trusted and is not there as a policeman."

The dilemma