Two-tier voting for independent directors: new dawn or false promise?
While it's too early to assess the full effects of two-tier voting, on its own, it's unlikely to be transformational.
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LAST year, 27 listed companies implemented two-tier voting for a total of 34 independent directors (IDs). This is ahead of mandatory two-tier voting under the SGX rulebook for IDs who have served more than nine years, which comes into effect in January 2022.
Revised rules
To recap, the listing rules were revised in 2018 to require an ID who has been a director for an aggregate period of more than nine years to seek approval in separate resolutions by (A) all shareholders; and (B) all shareholders, excluding shareholders who also serve as the directors or the chief executive officer (CEO) of the company, and associates of such directors and CEOs, in order to continue serving as an ID.
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