Companies finding ways to keep long-tenured IDs on their boards even as 9-year rule comes into effect
THE 9-year term limit for independent directors (IDs) of locally listed companies - which only came into effect on Jan 1 - is already at risk of becoming a joke in the market.
The rule is supposed to encourage board renewal and empower shareholders to assess the independence of long-tenured IDs.
Under Listing Rule 210(5)(d)(iii), the continued appointment of an ID who has served more than 9 years has to be put to a "two-tier" vote - that is, separate resolutions have to be voted on by (a) all shareholders; and (b) all shareholders, excluding the directors and the chief executive officer (CEO) and their associates.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Columns
‘Competition for talent’ a poor excuse to keep key executives’ pay under wraps
OCBC should put its properties into a Reit and distribute the trust’s units to shareholders
Why a stronger US dollar is dangerous
An overstimulated US economy is asking for trouble
Too many property agents? Cap commissions on home sales
Time to study broadening of private market access