THERE has been no lack of effort made to raise corporate governance standards in Singapore. The general belief is that with better corporate governance, investor confidence in local equities may rise.

Playing a key role in corporate governance are non-executive independent directors (IDs), who may constitute the majority on listed boards.

An ID is someone who does not have a material relationship with the company or management that would interfere with the exercise of his independent judgment. This includes not being a substantial shareholder of an entity, with a stake of 5 per cent or more.