LOCAL banks and insurers may have to appoint more independent and knowledgeable directors to their boards under more stringent regulations.
Directors may also face an annual review of their skills and a time quota to ensure they spend enough time on the job.
A series of proposals put forward by the Monetary Authority of Singapore (MAS) yesterday is in line with similar moves by regulators around the globe in the wake of the global financial crisis.
The MAS proposals aim, for instance, to tighten the rules applying to independent directors. These directors are meant to be at arm's length to the company on whose board they serve - and to challenge decisions where appropriate.
Under the proposals, a director will no longer be considered independent if he has served nine years straight on a board.
That means that in order to be deemed 'independent', a director must satisfy four criteria instead of the current three.
[SOURCE: http://www.straitstimes.com]
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