KUALA LUMPUR: The Securities Commission (SC) will impose a mandatory 12-year tenure limit for independent directors to ensure that boards have the right mix of directors to respond to present challenges and anticipate future risks as well as opportunities.
"It will be introduced in The Listing Requirements in 2022 in emphasising on strategic board refreshment and we would work closely with the Institutional Investors Council and the Minority Shareholders Watch Group. A change in the skills profile and composition of the board is required to meet the growing demand for businesses to evolve beyond the traditional emphasis on shareholders and profit maximisation towards greater consideration of broader stakeholders interest," the SC said in a technical briefing today.
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