Companies finding ways to keep long-tenured IDs on their boards even as 9-year rule comes into effect
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THE 9-year term limit for independent directors (IDs) of locally listed companies - which only came into effect on Jan 1 - is already at risk of becoming a joke in the market.
The rule is supposed to encourage board renewal and empower shareholders to assess the independence of long-tenured IDs.
Under Listing Rule 210(5)(d)(iii), the continued appointment of an ID who has served more than 9 years has to be put to a "two-tier" vote - that is, separate resolutions have to be voted on by (a) all shareholders; and (b) all shareholders, excluding the directors and the chief executive officer (CEO) and their associates.
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