Regulatory Proposals for Independent Directors in Hong Kong
The Stock Exchange of Hong Kong Limited (SEHK) has proposed recommended new practice on cross-directorships of independent non-executive directors (INEDs).
The consultation paper aims to improve the transparency of the nomination and election process of INEDs. The additional policy hones in on easing market concerns regarding over-boarding of INEDs. The regulator has questioned whether the overloaded directors can devote sufficient time to each and the situation might hinder the development of corporate governance standard for Hong Kong.