21 Aug 2018
ISCA CEO, Mr Lee Fook Chiew, was quoted in The Business Times on the question of "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?" This is what he has to share:
Independence is a state of mind which varies among individuals and may or may not be related to time. Nonetheless, some empirical studies on director tenures have shown that board directors start to lose their independence after nine years. Hence, in the absence of more practicable and/or rigorous measures, ISCA supports the nine-year rule for director independence as it encourages board renewal and the injection of fresh perspectives from new directors. An independent director can still serve as a non-independent director on the board, if he/she is truly valued by the company or its shareholders. Thus, the director’s cumulative knowledge as well as valued talent and expertise are not lost. - Lee Fook Chiew, Chief Executive Officer, Institute of Singapore Chartered Accountants (ISCA)
This article was first published in "Views From the Top" in The Business Times on 20 August 2018.
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