eGuide to CG Code

Upon appointment of each director, the company should provide a formal letter to the director, setting out the director's duties and obligations.
 
A. Explanation

This Guideline recommends the formalisation of a director’s duties and obligations upon appointment.

An upfront formal communication of a clearly defined scope of the director’s roles and responsibilities is necessary so that he is fully aware of, and understands his duties, the company’s expectations in this regard, and is thus able to carry out his obligations.

A good practice is for the appointment letter (and the employment contract) of an ED to explicitly link his directorship to his employment. This provides the Board flexibility to require an ED to step off the Board when his employment terminates.

In general, best practices require the company to compile the Terms of Reference for the Board and Board Committees together with other relevant documents into a Directors’ Manual. This manual represents a one-stop source of information which a director needs to know about his roles and duties in relation to the company, the Board, and its Committees.

 

B. SGX Disclosure Guide
  • Nil.

 

C. Related Rules and Regulations
  • Nil.

 

D. CG Guides
  • Board Guide 1.4: Legislation and Subsidiary Legislation [Corporate Governance].
  • Board Guide 2.2: Authority [Board Composition].
  • Board Guide 2.3: Terms of Reference [Board Composition].
  • Board Guide Appendix 2D: Sample Board Terms of Reference [Board Composition].
  • Board Guide Appendix 2E: Sample Index of Directors’ Manual [Board Composition].
  • NC Guide Appendix 1C: Sample NC Terms of Reference [NC Composition].
  • NC Guide 3.8: Appointment and Election of Directors [Nomination and Appointment Process].
  • NC Guide 4.6: The Lead Independent Director [Director Independence].

 

E. Related Articles

 

eGuide to CG Code
Overview
Board Matters
Principle 1
Guideline 1.1
Guideline 1.2
Guideline 1.3
Guideline 1.4
Guideline 1.5
Guideline 1.6
Guideline 1.7
Principle 2
Guideline 2.1
Guideline 2.2
Guideline 2.3
Guideline 2.4
Guideline 2.5
Guideline 2.6
Guideline 2.7
Guideline 2.8
Principle 3
Guideline 3.1
Guideline 3.2
Guideline 3.3
Guideline 3.4
Principle 4
Guideline 4.1
Guideline 4.2
Guideline 4.3
Guideline 4.4
Guideline 4.5
Guideline 4.6
Guideline 4.7
Principle 5
Guideline 5.1
Guideline 5.2
Guideline 5.3
Principle 6
Guideline 6.1
Guideline 6.2
Guideline 6.3
Guideline 6.4
Guideline 6.5
Remuneration Matters
Principle 7
Guideline 7.1
Guideline 7.2
Guideline 7.3
Guideline 7.4
Principle 8
Guideline 8.1
Guideline 8.2
Guideline 8.3
Guideline 8.4
Principle 9
Guideline 9.1
Guideline 9.2
Guideline 9.3
Guideline 9.4
Guideline 9.5
Guideline 9.6
Accountability and Audit
Principle 10
Guideline 10.1
Guideline 10.2
Guideline 10.3
Principle 11
Guideline 11.1
Guideline 11.2
Guideline 11.3
Guideline 11.4
Principle 12
Guideline 12.1
Guideline 12.2
Guideline 12.3
Guideline 12.4
Guideline 12.5
Guideline 12.6
Guideline 12.7
Guideline 12.8
Guideline 12.9
Principle 13
Guideline 13.1
Guideline 13.2
Guideline 13.3
Guideline 13.4
Guideline 13.5
Shareholder Rights and Responsibilities
Principle 14
Guideline 14.1
Guideline 14.2
Guideline 14.3
Principle 15
Guideline 15.1
Guideline 15.2
Guideline 15.3
Guideline 15.4
Guideline 15.5
Principle 16
Guideline 16.1
Guideline 16.2
Guideline 16.3
Guideline 16.4
Guideline 16.5
eGuide Glossary
Disclosure of CG arrangements
The Role of Shareholders

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