Establish accreditation scheme for company boards

I have been following the recent discussion about Singapore Post and its corporate governance issues ("SingPost appoints PwC for investigations"; Jan 20).

It is interesting to note that there is no statutory requirement for an independent director to be independent, and there is also no consequence for non-compliance.

There is a simple way to address these issues.

Introduce a voluntary accreditation scheme, jointly managed by the SingaporeInstitute of Directors (SID) and Securities Investors Association Singapore (Sias).

To be accredited, company boards would be required to appoint qualified directors from practising members of these two bodies.

The director from the SID would ensure consistency with the SID's statement of good practices, while the director from Sias will ensure that minority interests are not compromised.

With one accreditation scheme, corporate governance issues, as well as minority interests, can be addressed.

SID and Sias can recommend that their respective membersinvest only in accredited companies.

This will promote valuecreation for investors and provide a stronger voice for all stakeholders.

Yoong Fung Yan

A version of this article appeared in the print edition of The Straits Times on January 28, 2016, with the headline 'Establish accreditation scheme for company boards'. Print Edition | Subscribe