New regulations compel directors to state reasons for quitting


Directors who quit the boards of companies listed on the Singapore Exchange (SGX) will have to explain their reasons under new regulations outlined Thursday.

The new rules, which take effect October 1, are meant to improve transparency for investors. The change follows a survey into corporate governance focusing on the 488 resignations of directors during a one-year period. Conducted by the National University of Singapore, the survey found that no reason was given in two-thirds of the cases. Personal reasons were cited in a few. Under the change, investors can be alerted if a board member has resigned over trouble on the corporate floor. It will help them distinguish between routine departures and those motivated by board disagreements or corporate-governance concerns. A resignation “may be an indication that the director has concerns about the company or has a fundamental disagreement with the board or its management,” The Straits Times quoted Associate Professor Mak Yuen Teen, part of the group that conducted the survey, as saying.

With about 200 announcements daily of various corporate matters, a revised format will help draw investors’ attention to the departure of board members. (


Purchasing Managers' Index rises Analysis

Purchasing Managers' Index rises

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

The strongest move - Morgan Stanley Hungary head and Chess F... Podcasts

The strongest move - Morgan Stanley Hungary head and Chess F...

New Jewish cultural hub opens in Budapest City

New Jewish cultural hub opens in Budapest


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.