One and two-tier governance systems

It is unlikely that companies or even other non-profit organisations will follow SMF's move to a two-tier structure, says WILLIE CHENG

Published Sun, Apr 13, 2014 · 10:00 PM
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IN January 2014, the Singapore Manufacturing Federation (SMF) inaugurated a board of governors to sit above a (largely) elected council in order "to enhance the federation's corporate governance and accountability".

More specifically, the role of this board of governors is to "mediate and resolve issues, in the unlikely though possible event of serious council disagreements, or in the event where there is an unjustifiable draw on the past accumulated reserves of the federation".

The SMF's move to a two-tier governance structure took the sector somewhat by surprise because it runs against the preference in Singapore, the US and most Commonwealth countries for a one-tier governance model.

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