Francis Muthaura has stepped down as the chairman of the board of financial services group Britam Holdings #ticker:BRIT after nearly four years in the position.
Mr Muthaura, who became Britam chairman in November 2013, has relinquished his position in line with recommendations by the Capital Markets Authority (CMA) that board members retire when they attain 70 years.
Britam, in a notice to investors, says the former head of the civil service will be replaced by Walter Andrew Hollas who has been part of the board since May 2015.
“Mr Muthaura has retired voluntarily having attained the age of 70 years in line with best corporate governance practice,” said Britam, adding that his resignation took effect on August 23.
“The board is very grateful for Ambassador Muthaura for his great leadership and immense contribution to the company during his directorship. The board congratulates Mr Hollas on his appointment.”
READ: Britam's net profit drops to Sh995 mn on higher insurance claims
The regulator last year published regulations recommending that board members voluntarily retire once they turn 70. However, shareholders can, at an annual general meeting, vote to retain them.
The regulator’s move to cap the age of board members is meant to strike a balance between having long-serving, experienced directors and the need to inject fresh blood and ideas into the listed companies.
The CMA, in setting age limits for directors, is borrowing best practices from other regulators.
For example, the Companies Commission of Malaysia sets 70 as the age limit to serve in a public firm.
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