Time to upgrade independent director framework in Singapore

IT is time to strengthen the framework for independent directors among Singapore's listed companies.

Regulators and shareholders must demand greater accountability, neutrality and relevant expertise from independent board members. At the same time, regulators and industry watchdogs can provide better support and recognition for independent directors who perform their duties properly.

Independent directors have always been a crucial safeguard against impropriety. That role will gain even greater importance if and when the Singapore Exchange (SGX) adopts new rules that allow dual-class share structures and that remove the need for compulsory quarterly reporting. When companies are given greater flexibility on matters of disclosure and owners' oversight, independent directors are the frontline defence against dishonesty and oppression.