Singapore legislation
Regulation 6
Regulation 6
Independence from management and business relationships
Subregulation 1
In these Regulations, subject to regulation 8, a director shall be considered to be independent from management and business relationships with a bank incorporated in Singapore if —
the director has no management relationship with the bank or any of its subsidiaries; and
the director has no business relationship with the bank or any of its subsidiaries, or with any officer of the bank,that could interfere, or be reasonably regarded as interfering, with the exercise of the director’s independent business judgment with regard to the interests of the bank.
Subregulation 2
Without prejudice to paragraph (1)(a), a director shall not be considered to be independent from management relationships with a bank incorporated in Singapore or any of its subsidiaries if —
he is employed by the bank or any of its subsidiaries, or has been so employed at any time during the current financial year or any of the preceding 3 financial years of the bank or any of its subsidiaries;
any member of his immediate family —
is employed by the bank or any of its subsidiaries as an executive officer whose compensation is determined by the Remuneration Committee of the bank or any of its subsidiaries; or (ii)has been so employed at any time during the current financial year or any of the preceding 3 financial years of the bank or any of its subsidiaries; or
he is accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the management of the bank or any of its subsidiaries.
Subregulation 3
Without prejudice to paragraph (1)(b) but subject to regulation 8, a director shall not be considered to be independent from business relationships with a bank incorporated in Singapore or any of its subsidiaries if —
he is a director, a substantial shareholder or an executive officer of any corporation, or a partner of a firm or a limited liability partnership or a sole proprietor, where such corporation, firm, limited liability partnership or sole proprietor carries on business for purposes of profit to which the bank or any of its subsidiaries has made, or from which the bank or any of its subsidiaries has received, payments in the current or immediately preceding financial year; or
he is receiving or has received any compensation from the bank or from any of the bank’s subsidiaries, other than compensation received for his services as a director or as an employee, at any time during the current or immediately preceding financial year of the bank.