HK group calls for review on listing rules on directors

A committee led by the Hong Kong Independent Non-Executive Directors Association has asked regulators to review the listing rules regarding the restrictions on independent non-executive directors (INED) who have served the same company for nine years or taken up the role for more than six firms. It said six is not a magic number for the maximum number of board seats an INED could take, and nine is not a magic number either for the years of service of INEDs with a firm that would necessarily undermine independence. It said that it is only after many years of service that an INED will be able to gain insight to make appropriate recommendations to the listed firms and having an INED who has over six board seats could benefit the companies' corporate governance practice with their wide exposure.