What nominating committees should consider for disclosures on investigations

REPORTS of directors of listed issuers being called in for questioning by police investigators surface every now and then. Singapore Exchange Regulation (SGX RegCo) is often asked following such reports whether these directors should be allowed to continue to serve on boards or resume their duties in the listed companies.

Nominating committee's obligations

Board directors have fiduciary duties to act in the best interests of the company. Under Rule 720(1), issuers must ensure under Mainboard Rule 210(5)(b) or the equivalent Catalist Rule that directors comply with the character and integrity requirements on a continuing basis.