SC: Maximum tenure for independent directors capped at 9 years

KUALA LUMPUR: The tenure of independent directors should not exceed nine years, according the new Malaysian Code on Corporate Governance launched by the Securities Commission (SC) today.
This is one of the key practices introduced by the SC to enhance corporate governance among the listed companies.
According to the SC, 810 independent directors have served for more than nine years, with the longest tenure being 37 years.
"This new code is an important milestone in Malaysia's continued journey in promoting good corporate governance to ensure the sustainability and resilience of the capital market. It serves as a compass for boards to steer their companies forward and deepen understanding on the importance of corporate governance," said SC chairman Tan Sri Ranjit Ajit Singh at the launch of the new Malaysian Code on Corporate Governance here.
Besides that, the code requires half of the boards to comprise independent directors, while large companies need to have a majority of independent directors.
Large companies are those on the FTSE Bursa Malaysia Top 100 Index or with a market capitalisation of RM2 billion and above.
The companies also need to disclose the remuneration breakdown of individual directors includes fees, salary, bonus, benefit in-kind and other emoluments.