New corporate governance rules proposed

The Singapore Exchange is seeking public feedback on whether it should be written into the Listing Rules, and public consultation will close on Mar 15.
The Singapore Exchange is seeking public feedback on whether it should be written into the Listing Rules, and public consultation will close on Mar 15.ST PHOTO: DESMOND WEE

Listed companies will have to justify the independence of long-serving independent directors if suggested rule changes by the Corporate Governance Council go into force in the second half of this year.

The council is proposing to enforce a "nine-year rule" that will reassess whether such directors still qualify as independent after being in that role for so long.

The proposal is being made in an effort to encourage companies to refresh and introduce more diversity into their boardrooms.

The Singapore Exchange is seeking public feedback on whether it should be written into the Listing Rules, and public consultation will close on March 15.

SEE TOP OF THE NEWS: Independent directors may face reassessment after 9 years

A version of this article appeared in the print edition of The Straits Times on January 17, 2018, with the headline 'New corporate governance rules proposed'. Print Edition | Subscribe