Refreshing board members

Shareholders Watchdog Group chief executive officer Devanesan Evanson told StarBiz that the move to limit the tenure of independent directors is a good one. “Independent directors become less and less independent over time and it is a timely move to put a cap on the tenure of independent directors. The long-tenure independent directors can continue to serve on the board but cannot be classified as independent directors,” he said.

KUALA LUMPUR: A mandatory tenure limit of 12 years for independent directors will be introduced in the Listing Requirements early next year.

The Securities Commission (SC) said in its Corporate Governance Monitor 2021 that this would help facilitate a structured board refreshment among listed companies.