Kuala Lumpur: People with executive powers such as heads of states and ministers should not serve on boards of listed companies, Securities Commission (SC) Malaysia Executive Chairman Datuk Syed Zaid Albar said.
He cited Chapter Seven of the Organisation for Economic Co-Operation and Development (OECD) guide that said such appointments may cast doubt on the independence of the boards.
“Listed companies should be guided by the OECD corporate governance principles for state-owned enterprises,” he said, Thursday. Syed Zaid was responding to reporters’ questions on concerns about the increasing number of politicians appointed to boards of listed companies.
Last August, the government revealed that it had appointed a total of 15 politicians as chairmen and board members of Minister of Finance Incorporated companies.
Among them are Umno’s Cameron Highlands MP Ramli Mohd Nor - Amanah Raya chairman, Umno’s Jelebu MP Datuk Jalaluddin Alias – UDA Holdings Bhd chairman, Umno’s Padang Terap MP Datuk Seri Mahdzir Khalid – Tenaga Nasional Berhad chairman, Bersatu’s Gombak MP Datuk Seri Amin Ali - Khazanah director, and Umno’s Rompin MP Datuk Seri Hassan Arifin – Pengurusan Aset Air Berhad chairman.
Others include Umno’s Pasir Salak MP Datuk Seri Tajuddin Abdul Rahman, who was appointed as the chairman of Prasarana Malaysia Bhd, Umno’s Batang Lupar MP Datuk Seri Rohani Abdul Karim Padi Beras Nasional (Bernas) chairman and Gabungan Parti Sarawak’s Igan MP Ahmad Johnie Zawawi as the Indah Water Konsortium Sdn Bhd chairman.
Kedah Mentri Besar Muhammad Sanusi Md Nor was appointed to a position in the federal government’s statutory body.
Explaining further, Syed Zaid said appointment of board members in listed companies should be viewed from several dimensions.
“Firstly, shareholders have power to appoint or reappoint directors by exercising their voting rights.
“So, we urge shareholders to exercise their rights in ensuring that not only persons who are fit and proper, and can contribute to the roles are appointed to the board,” he said.
He also pointed out that the nominating committee on the listed companies have the responsibility to ensure that those nominated to sit on their boards are competent and can dedicate sufficient time in discharging their duties as a board member.
“Shareholder activism is another aspect.
“Shareholders have a role to play and the ultimate power to reject or approve approval of directors is that of the shareholders,” Syed Zaid added.
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