No. 4/2018
PuBLIC ENnTrEs CoRPORATE GovERNANCii
(b)
Cap.l0:31
have an appropriate balance between executive and non-executive
directors and not less than sixty percent of board members should be nonexecutive directors and the majority of non-executive directors should be
independent.
91. The roles of the chairperson of the Board and chief executive officer should
be kept separate and where the two roles are merged, special reasons for combining the
roles should be disclosed and the safeguards provided in this Code must be implemented.
92. The Board should, where appropriate through committees composed only
of independent non-executive members or in which such members are in the majority. It should have in place properly formulated terms of reference \vhich include the
scope of authority, composition, roles, responsibilities and duties of the cotmnittees.
The essential committees are Audit Committee, Risk Committee, Dispute Resolution
Committee and Remuneration Committee.
93. A proper balance should be maintained between continuity of Board
membership and the sourcing of new ideas through the appointment of new members.
94. Every Board should consider whether its size, diversity and demographics
make it etTcctive. Diversity relates to academic qualifications, technical expertise,
relevant industry knowledge, experience, nationality, age, race and gender.
95. When determining the number of directors to serve on the Board, the collective
knmvledge, skills, experience and resources required for conducting the business of
the Board should be considered.
96. Factors that determine the mm1ber of directors to be appointed indude(a)
the evolving circumstances, the needs of the company and the nature of
its business;
(b)
the need to have sufficient directors to structure Board committees
appropriately;
(c)
potential difficulties of raising a quorum with a small Board;
(d)
the need to comply with regulatory requirements.
97. As a minimum, two executive directors should be aptx>inted to the Board, being
the chief executive officer and the director responsible for finance. This will ensure
that there is more than one point of contract between the Board and management. As a
minimum, three non-executive directors should be appointed to the Board, the majority
of them being independent.
98. Board members should not serve on more than six boards at the same time
and should this threshold be exceeded, the Board members conc,~med should give
good and sufficient reasons for that and demonstrate ability, availability and capacity
to discharge their roles. functions and duties in ways which best serve the interests of
the company, its shareholders and other sta.lceholders. Such reasons must be subjected
to scmtiny and approved by a resolution of at least fifty percent of shareholders present
at a meeting convened for that pmvose.
99. A person should not be appointed as chairperson of more than four boards
and should tllis threshold be exceeded, then the person concerned should offer good
and sufficient reasons for that and demonstrate ability; availability and capacity to
discharge their roles, functions and duties in ways \Vhich best serve the interests of the
company, its shareholders and other stakeholders. Such reasons must be subjected to
scrutiny and approved by a resolution of at least sixty percent of shareholders present
at a meeting convened for that purpose.
100. A director of a subsidiary company should not be appointed to sit on the
Board of the holding company except as an alternate director for succession planning
purposes.
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