Welcome spur to board renewal

THIS WEEK'S TOPIC: Do you agree with the nine-year rule for director independence? How will the term limit affect recruitment of directors and overall board quality and competencies?

John Bittleston Founder & Chair Terrific Mentors International Pte Ltd

Too many boards have had nodding heads when they should have been shaking heads. Directors should not stay on boards long enough to become so cosy that they ignore their fiduciary duties. In a small community there will always be a temptation to cronyism and any effort that can reduce the worst effects of that are to be welcomed. Nine years may be too long. I think that it might be five years with the right of the retiring director, if nominated by the board, to apply for re-election by a small committee of shareholders. This might weed out the failing (for whatever reason) while giving useful directors a chance to continue their good work.