Should failing to act diligently be a crime?
The regulatory framework should be changed to ensure proper balance between compensation, deterrence and punishment for directors
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MOST people think that so long as they do not cheat, steal or act dishonestly, they would have carried out their duties as directors under the law.
However, this is not the case in Singapore and it should be realised that the standard of governance for directors sets a much higher bar than that.
What's more, the penalties for failing to exercise proper due diligence can be very high. In fact, it can be criminal.
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