9-year threshold for IDs: Limited pool a hurdle to board renewal

Singapore

IT has been more than a year since the Monetary Authority of Singapore (MAS) made the nine-year threshold for independent directors (IDs) a hard limit written into the Singapore Exchange (SGX) Listing Rules, and the issue remains a nagging concern for listed companies and the frontline regulator.

On Thursday, the Singapore Board of Directors Survey 2019 showed some 43 per cent of respondent companies still have IDs who have served more than nine years. The problem is more pronounced in the smaller capitalised firms (45 per cent), compared to the large cap ones (37 per cent). Aggravating the situation is the finding from last year's Singapore Directorship Report (SDR) which showed there were 2,356 ID board seats that needed to be filled, but only 1,625 individuals filling those seats.