eGuide to CG Code

Individual evaluation should aim to assess whether each director continues to contribute effectively and demonstrate commitment to the role (including commitment of time for meetings of the Board and board committees, and any other duties). The Chairman should act on the results of the performance evaluation, and, in consultation with the NC, propose, where appropriate, new members to be appointed to the Board or seek the resignation of directors.
 
A. Explanation

This Guideline concerns the performance evaluation of each individual director.

There are inherent difficulties with individual directors evaluating each other.

Firstly, unlike executives, individual directors do not usually have individual accountability and performance metrics. Board effectiveness often involves the application of the collective wisdom of the directors.

Secondly, the mutual assessment of the performance of directors will impact on their subsequent interactions, and runs the risk of destroying the open debate and collegiality of the Board.

The Guideline recommends some of the criteria by which an individual director can be evaluated on: whether he has contributed effectively to the Board, and whether he has demonstrated commitment to his office. This includes how much time he has spent at meetings and the number of meetings he has attended.

The Guideline also recommends that the Board Chairman acts on the result of the assessment. This should include appropriate feedback to the director concerned. Where the situation requires, the Board Chairman, in consultation with the NC, should seek the resignation of a non-performing director and/or the appointment of new directors to improve overall board dynamics and performance.

 

B. SGX Disclosure Guide
  • Nil.

 

C. Related Rules and Regulations
  • Nil.

 

D. CG Guides
  • NC Guide 1.3: Terms of Reference [NC Composition].
  • NC Guide Appendix 1B-1: Removal of NC Member and Chairman from the NC [NC Composition].
  • NC Guide Appendix 1C: Sample NC Terms of Reference [NC Composition].
  • NC Guide 2.2: NC Calendar [NC Agenda].
  • NC Guide Appendix 2C: Sample NC Calendar [NC Agenda].
  • NC Guide Appendix 3B-4: Removal of an Independent Director [Nomination and Appointment Process].
  • NC Guide Appendix 3B-6: Removal of a Board Chairman [Nomination and Appointment Process].
  • NC Guide 6.1: Introduction [Board and Director Evaluation].
  • NC Guide 6.4: Director Evaluation [Board and Director Evaluation].
  • NC Guide Appendix 6B-1: 360° Assessment Process for Executive Directors [Board and Director Evaluation].
  • NC Guide Appendix 6E: Sample Director Peer Performance Evaluation Form [Board and Director Evaluation].
  • NC Guide Appendix 6F: Sample Chairman Performance Evaluation Form [Board and Director Evaluation].

 

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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