IN MANY ways, the Singapore Exchange (SGX) behaves like a top exclusive school here.

Before a company can get its foot in the door at the local bourse operator, there are stringent tests to make sure it is up to scratch.

If the company gains entry, it has to conform to the numerous rules enshrined in the SGX listing manual and the code of corporate governance.

The parallels here with a school's disciplinary code of conduct which a student has to obey are striking.

To make sure that companies keep up the standards, there are also regular 'assessments' requiring them to release their profit and loss accounts every quarter. There is even a report card every year in the form of an annual report to tell shareholders how the company is faring.

Like a good school, the SGX conducts surveys and studies - with the help of other professional bodies - to see how its charges are faring and how its curriculum can be improved.

In this regard, the recently released results of a survey it jointly conducted with the Singapore Institute of Directors (SID) must be very gratifying.

Key findings of the poll indicated that the ethos which the SGX promotes - a greater role for independent directors and better communications with shareholders, for instance - is getting the thumbs-up from listed firms.

Independent directors are busier than ever, involved in a wide spectrum in a listed company's activities, including the selection of other directors, evaluating the chief executive's performance and succession planning.

The only snag is that only 130 companies, or about 19 per cent of all SGX-listed firms, participated in the poll.

Read the full report in the Monday's edition of The Straits Times' Money section.