Companies may scramble to replace 462 independent directors by 2024 deadline: SID

WITH 20.9 per cent of more than 2,200 independent directors having served on the boards of Singapore-listed companies for more than nine years, these companies may soon be scrambling to replace these 462 independent directors in their upcoming annual general meetings (AGMs). This is to comply with a new nine-year tenure limit set by the Singapore Exchange Regulation (SGX RegCo).

While the proportion of long-serving independent directors has gone down in 2022 compared with 24.6 per cent in 2020, there is still a significant number who will be affected by the new ruling. It has already come into effect, though the regulator has allowed those who have already exceeded the term limit to continue to be considered independent until the company’s AGM is held for the financial year ending on or after Dec 31, 2023.

Among companies that have been listed for more than nine years, the proportion of long-serving independent directors is even higher at 24.9 per cent, based on the latest Singapore Directorship Report released by the Singapore Institute of Directors (SID) on Wednesday (Oct 18).