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6/10/2006

nkf and corporate governance

The latest twist in the NKF saga is like the tale of the 3 musketeers. One for all and all for one. Why should only 3 directors be name and be held responsible for all the problems created? Every member of the board of directors is equally responsible for the conduct and actions/decisions of the board unless he has put in his objection. Perhaps this is the most correct thing for the accused to do, to drag along all their peers to face the music. This is what corporate governance is all about in Singapore and found wanting. Being a director of a corporation is not just collecting directorship fees and drinking tea and having a party. There are responsibilities and accountabilities. Otherwise every donkey will be so happy to grab as many directorship as possible and laughing all the way to the bank. And when some failings appear, quickly resign and disappear from the scene. Not seen, not heard, and forgotten only to reappear in another board of directors. It is good that the Stock Exchange is tightening on the rules and regulations governing corporate governance to make a point that work and responsibilities come first before directorship fees. Directorship is not free lunch.

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