<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR>>>>Independent directors play vital role: Poll <<<
What's the value add of this statement? Who doesn't know it? But are the Papaya MPees who hold thousands of such crony position and collecting awesome pay cheques doing their job?
Home > Money > Story
</TR>
<!-- headline one : start --><TR>Independent directors play vital role: Poll
</TR><!-- headline one : end --><TR>Results show good corporate governance being practised here </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Goh Eng Yeow
</TD></TR><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->A NEW survey has contradicted the perception in some quarters that independent directors do little to hold management to account.
It found these directors are now busier than ever, and are playing an increasingly vital role in shaping the future of the listed companies on whose boards they sit. Their involvement covers a broad spectrum, including the selection of other directors, evaluating the performance of the chief executive, and succession planning.
<TABLE width=200 align=left valign="top"><TBODY><TR><TD class=padr8><!-- Vodcast --><!-- Background Story --><STYLE type=text/css> #related .quote {background-color:#E7F7FF; padding:8px;margin:0px 0px 5px 0px;} #related .quote .headline {font-family: Verdana, Arial, Helvetica, sans-serif; font-size:10px;font-weight:bold; border-bottom:3px double #007BFF; color:#036; text-transform:uppercase; padding-bottom:5px;} #related .quote .text {font-size:11px;color:#036;padding:5px 0px;} </STYLE>Key findings of the survey
THE survey was conducted between December last year and April. Here are the key findings:
Contrary to perception, most executive directors and non-executive directors hold only one or two additional directorships at most.
RELATED LINKS
<!-- Audio --><!-- Video --><!-- PDF -->
ONE OR TWO IS ENOUGH
<!-- Photo Gallery -->
</TD></TR></TBODY></TABLE>Reflecting the growing importance of their role, more companies are paying greater attention to their training in areas such as strategic management and accounting - to ensure they stay abreast of business developments.
A growing percentage of firms are also enlisting the help of external experts to assess the performance of their boards.
These observations formed part of the findings of the survey covering 130 listed firms here - about 19 per cent of all firms listed on the Singapore Exchange (SGX).
The survey - a joint effort by the Singapore Institute of Directors (SID) and the SGX, and involving private firms like PricewaterhouseCoopers - was conducted between December last year and April.
Those surveyed cover a cross-section of industries, from manufacturing and commerce to construction and transport. A survey in 2005 had attracted a larger number of respondents - 169.
But SID president John Lim said yesterday at a press conference that he was pleased with the response. 'We got about 20 per cent. The usual response rate is 12 per cent.'
Like the 2005 survey, responses from the latest study mostly came from Singapore-incorporated firms.
Only a handful of firms incorporated in foreign jurisdictions, such as Bermuda and Thailand, had replied. Mr Lim said he was unable to explain this.
The number of finance industry firms that responded also fell from 16 in 2005 to just three in the latest survey.
Still, the results show that good corporate governance practices, at least from those that responded, are alive and well here.
About 58 per cent of respondents said at least half of their boards are made up of independent directors, while 38 per cent said their board chairman is 'neither a controlling shareholder nor a nominee of the controlling shareholder'.
The vexing debate over directors who sit on numerous boards may also turn out to be a non-issue.
The survey showed that a non-executive director holds an average of only 2.8 more directorships in other listed firms and 4.3 more directorships in unlisted ones.
Still, Mr Lim felt that, rather than putting a cap on the number of directorships, this is an issue that a board and its shareholders should determine.
'We believe there should be full disclosure. Every annual report should disclose the number of directorships a director holds, state the basis for appointing them, and let shareholders decide.'
SGX senior executive vice-president Yeo Lian Sim described the survey findings as positive. She said: 'Corporate governance is not something you can do overnight. It is an ongoing process.'
At yesterday's press conference, SID chairman Chew Heng Ching responded to questions over the poor corporate governance issues dogging listed firms registered in foreign jurisdictions.
Since the start of the year, a number of China-based firms have been besieged with alleged accounting irregularities, and this has resulted in them being suspended from trading altogether.
'SID is equally concerned with the corporate governance issues. Obviously, this is an issue relating to all companies with overseas operations,' Mr Chew said.
Before accepting an appointment, an independent director should do his homework, 'ask around and (check) the integrity of the person in the driver's seat'.
And after making the checks and climbing onto a company's board, an independent director should play an active role, visit the plant in China and see for himself how the money is spent there.
'I, for one, will not support an independent director who resigns when there is trouble. That is the wrong attitude. If there is a problem, that is where the challenge comes in,' Mr Chew said. [email protected]
What's the value add of this statement? Who doesn't know it? But are the Papaya MPees who hold thousands of such crony position and collecting awesome pay cheques doing their job?
Home > Money > Story
</TR>
<!-- headline one : start --><TR>Independent directors play vital role: Poll
</TR><!-- headline one : end --><TR>Results show good corporate governance being practised here </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Goh Eng Yeow
</TD></TR><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->A NEW survey has contradicted the perception in some quarters that independent directors do little to hold management to account.
It found these directors are now busier than ever, and are playing an increasingly vital role in shaping the future of the listed companies on whose boards they sit. Their involvement covers a broad spectrum, including the selection of other directors, evaluating the performance of the chief executive, and succession planning.
<TABLE width=200 align=left valign="top"><TBODY><TR><TD class=padr8><!-- Vodcast --><!-- Background Story --><STYLE type=text/css> #related .quote {background-color:#E7F7FF; padding:8px;margin:0px 0px 5px 0px;} #related .quote .headline {font-family: Verdana, Arial, Helvetica, sans-serif; font-size:10px;font-weight:bold; border-bottom:3px double #007BFF; color:#036; text-transform:uppercase; padding-bottom:5px;} #related .quote .text {font-size:11px;color:#036;padding:5px 0px;} </STYLE>Key findings of the survey
THE survey was conducted between December last year and April. Here are the key findings:
Contrary to perception, most executive directors and non-executive directors hold only one or two additional directorships at most.
RELATED LINKS
<!-- Audio --><!-- Video --><!-- PDF -->
<!-- Photo Gallery -->
</TD></TR></TBODY></TABLE>Reflecting the growing importance of their role, more companies are paying greater attention to their training in areas such as strategic management and accounting - to ensure they stay abreast of business developments.
A growing percentage of firms are also enlisting the help of external experts to assess the performance of their boards.
These observations formed part of the findings of the survey covering 130 listed firms here - about 19 per cent of all firms listed on the Singapore Exchange (SGX).
The survey - a joint effort by the Singapore Institute of Directors (SID) and the SGX, and involving private firms like PricewaterhouseCoopers - was conducted between December last year and April.
Those surveyed cover a cross-section of industries, from manufacturing and commerce to construction and transport. A survey in 2005 had attracted a larger number of respondents - 169.
But SID president John Lim said yesterday at a press conference that he was pleased with the response. 'We got about 20 per cent. The usual response rate is 12 per cent.'
Like the 2005 survey, responses from the latest study mostly came from Singapore-incorporated firms.
Only a handful of firms incorporated in foreign jurisdictions, such as Bermuda and Thailand, had replied. Mr Lim said he was unable to explain this.
The number of finance industry firms that responded also fell from 16 in 2005 to just three in the latest survey.
Still, the results show that good corporate governance practices, at least from those that responded, are alive and well here.
About 58 per cent of respondents said at least half of their boards are made up of independent directors, while 38 per cent said their board chairman is 'neither a controlling shareholder nor a nominee of the controlling shareholder'.
The vexing debate over directors who sit on numerous boards may also turn out to be a non-issue.
The survey showed that a non-executive director holds an average of only 2.8 more directorships in other listed firms and 4.3 more directorships in unlisted ones.
Still, Mr Lim felt that, rather than putting a cap on the number of directorships, this is an issue that a board and its shareholders should determine.
'We believe there should be full disclosure. Every annual report should disclose the number of directorships a director holds, state the basis for appointing them, and let shareholders decide.'
SGX senior executive vice-president Yeo Lian Sim described the survey findings as positive. She said: 'Corporate governance is not something you can do overnight. It is an ongoing process.'
At yesterday's press conference, SID chairman Chew Heng Ching responded to questions over the poor corporate governance issues dogging listed firms registered in foreign jurisdictions.
Since the start of the year, a number of China-based firms have been besieged with alleged accounting irregularities, and this has resulted in them being suspended from trading altogether.
'SID is equally concerned with the corporate governance issues. Obviously, this is an issue relating to all companies with overseas operations,' Mr Chew said.
Before accepting an appointment, an independent director should do his homework, 'ask around and (check) the integrity of the person in the driver's seat'.
And after making the checks and climbing onto a company's board, an independent director should play an active role, visit the plant in China and see for himself how the money is spent there.
'I, for one, will not support an independent director who resigns when there is trouble. That is the wrong attitude. If there is a problem, that is where the challenge comes in,' Mr Chew said. [email protected]
