Thai Chairman want larger portion of independent directors on board
Chairman of Thai companies would like boost the portion of independent directors on their boards in line with international practices while seeing moderate to high probability that firms would raise such portion to more than half, according to findings from the Chairman Forum on “Chairman’s Role in Building Independence Across the Board” arranged by the Thai Institute of Directors (IOD) on March 30.
"The board's independence is the key principle in performing their duties under good corporate governance concept. It is also an important factor affecting the effectiveness of board's decision that ensures benefits of all stakeholders," said Dr. Bandid Nijathaworn, President & CEO of the IOD.
Chairman, attending the forum, agreed that they should promote board's independence by determining the right board structure while they see moderate to high probability that companies would set policy to limit term of independent directors at no more than 9 years.
According to the Corporate Governance Report of Thai Listed Companies conducted by the IOD during 2008 - 2014, 78.7% of Thai listed firms have 33 - 50% portion of independence director dominate more than half of the board accounted to only 8.7%
Moreover, Chairman also agreed that they need to provide opportunities and create favorable environment for all directors to truly express their opinions even if their views are differ from that of the Chairman.
On chairman's independence, most chairmen see no immerdiate need for the chairman to be an independent director, possibly because a large number of Thai companies are rooted in family business. To foster board independence under such circumstance, the Chairmen are of view that the portion of independent directors could be increased to more than half.
