Time to rethink directorial duties
In light of Singapore's commitment to climate change targets post-COP26, it needs to review corporate stewardship and regulation.
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ON Apr 14, 2021, a group of independent legal counsels issued a legal opinion. They concluded that company directors in Singapore were obliged to consider climate change risks as part of their duties to act in the company's best interests. Singapore has also committed to reviewing its climate change targets following the recent 2021 United Nations Climate Change Conference (COP26) on cutting greenhouse-gas emissions.
In light of these developments, there should be a rethink of directors' duties in Singapore.
Directors here are under a duty to act in the interests of the company. Determining what is in the company's interest is often left to the subjective judgment of the directors, and it usually boils down to maximising shareholders' value and returns on investment.
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