More training, tighter regulations needed as board directors face ‘increasingly demanding’ role

BOARD directors are facing increasing demands from regulators and the market, and need self-discipline to keep up to date on the affairs of their companies, say industry observers.

Mandatory training hours, performance appraisals and a cap on the number of directorships that individuals can hold were among some suggestions given by industry observers to nudge board directors to do their due diligence on companies.

Last month, the High Court found Goh Jin Hian, who is the former non-executive director of insolvent marine fuel supplier Inter-Pacific Petroleum (IPP), liable for breach of director’s duties, statutory duties and losses suffered by the company amounting to US$146 million plus interest.