Directors should be required to say if they will take part in cash calls

PANDEMIC-hit Singapore Airlines undertook a massive S$15 billion fundraising exercise earlier this year. Readers may remember the extensive media coverage and online ads promoting the rights issue, which was oversubscribed. To the surprise of many, only six of the airlines' nine directors took up their rights shares, and only one took up the bonds.

Given that the positive disclosure of a listed company's directors' intention to participate in a fundraising is not mandated by the securities regulations of Singapore, this incident raises an important corporate governance and ethical point: Should listed company directors - having made certain recommendations to shareholders - positively disclose their intention as shareholders to subscribe or not subscribe in a fundraising?

This is particularly important when considering directors are making recommendations to retail investors, many of whom do not have the technical knowledge, depth of experience or even familiarity with the relevant business that they do.