Responding to a query made by a shareholder, the Board of a listed company in Malaysia responded in the AGM:
Board diversity is good, including gender representation. However, Board diversity should be in terms of expertise, experience and skills and not gender per se. There should not be a target or quota for lady Directors on the Board, as it will be both discriminatory and ineffective to appoint lady Directors just to fulfill a certain target.Well said...
On succession planning:
ReplyDeleteConceptually it may be ideal for all public listed corporations to have succession planning at the Board, and this has already been carefully and consciously considered by the Nomination Committe and the Board.
The Nomination Committee and the Board do not envisage it desirable to have an inflexible and rigid time-frame for planning any replacement or new appointments of Directors.
What is important and essential is that, as presently constituted, the Board has the stability, continuity and commitment as well as capacity to discharge its responsibities.
The Board would continue to sustain flexible design in the structure and composition of the Board, and the processes as well as approaches to succession planning as the Board deems appropriate.
Tenure limit for Independent Directors:
The Board holds the view that the abiility of an Independent Director to exercise independence is not a function of his length of service as an Independent Director.
The suitability and ability of an Independent Director to carry out his roles and responsibilities effectively are very much a function of his calibre, qualification, experience and personal qualities.