If Sheng Siong can’t add an independent director, maybe it should cut a family member instead
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WHEN Singapore Exchange (SGX) queried Sheng Siong last week about the independence of its board, the grocery chain justified the composition of its board by saying that it was unnecessary to add more independent directors (IDs).
If it is true that Sheng Siong cannot maintain a larger board, perhaps the company should instead remove the directorship of a family member to ensure that the interests of the company’s stakeholders and minority shareholders are adequately protected.
SGX last week queried Sheng Siong why its board did not meet the Code of Corporate Governance’s guideline that the majority of a board should be independent and non-executive when the chairman is not independent.
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