Keppel, ComfortDelGro, The Hour Glass latest to redesignate IDs as non-independent directors

ComfortDelgro C52 and The Hour Glass AGS separately announced on Thursday (Dec 30) that they will be redesignating their independent directors (IDs) as non-independent directors from Jan 1, 2022.

Keppel Corp BN4 also announced that it would redesignate its independent chairman as non-independent chairman.

This comes after a hard term limit of 9 years for IDs written into the Singapore Exchange (SGX) Listing Rules back in August 2018 is set to come into effect on Jan 1, 2022.

The rules, written by the Monetary Authority of Singapore, state that after 9 years, IDs will be subject to a two-tier vote by shareholders excluding directors, CEO and associates. If IDs do not receive enough votes, they may continue to serve on the board as non-independent director.

All companies will also need to ensure that IDs make up at least a third of their board seats.

ComfortDelGro announced that Dr Wang Kai Yuen will be redesignated as non-independent director after serving the board for more than 19 years. Dr Wang will remain as a member of the company's audit and risk committee, its nominating and remuneration committee as well as its digitalisation committee.

The Hour Glass also announced that Kuah Boon Wee will step down as lead independent director of the company and be redesignated as a non-independent director. Kuah will remain a member of the company's audit committee as well as its nomination and remuneration committee.

Keppel announced that Danny Teoh Leong Kay has served as a director on the company's board since 2010 and will be redesignated as non-independent chairman from his current role as an independent chairman.

Shares of ComfortDelGro closed flat at S$1.40, while Keppel shares closed down 1.2 per cent or S$0.06 at S$5.11 and The Hour Glass' shares closed at S$2.06, up 1.5 per cent or S$0.03 on Thursday, before the announcements were made.

READ MORE: Nine-year cap on independent directors to kick in from 2022