Why CMA cut independent directors’ term to six years

Capital Markets Authority (CMA) Chief Executive Officer Wycliffe Shamiah.

Photo credit: File | Nation Media Group

From April 19, 2024, independent directors can only serve for a maximum of six years from nine in far-reaching changes to corporate governance rules likely to shake up the boardrooms of most listed companies.

A brief by the Capital Markets Authority (CMA) seen by Business Daily shows that the initial intention was to retain the tenure for an independent director at nine years but stakeholders wanted it slashed to five years before they settled on six.

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