Listed company directors are facing a shakeup on a move by the Capital Markets Authority (CMA) to cap the period one can serve as an independent member at six years from nine.
The proposed changes, contained in the Capital Markets (Securities) (Public Offers, Listing and Disclosures) Regulations 2023, also seek to set clear parameters on cross directorship to address potential conflicts of interest where individuals sit on boards of multiple related or associated companies.
“Going forward, Regulation 2(1) of the Capital Markets (Securities) (Public Offers, Listing and Disclosures) Regulations 2023 provides that a director shall cease being independent after six years of continuous service,” said the CMA.
