Singapore legislation
Regulation 4
Regulation 4
Independence from management and business relationships
Subregulation 1
In this Part, subject to regulation 14 or 22 (as the case may be), a director is independent from management and business relationships with a DFHC (Licensed Insurer) if —
the director has no management relationship with the DFHC (Licensed Insurer) or any of its subsidiaries; and
the director has no business relationship with the DFHC (Licensed Insurer) or any of its subsidiaries, or with any officer of the DFHC (Licensed Insurer),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 DFHC (Licensed Insurer).
Subregulation 2
Without limiting paragraph (1)(a), a director is not considered to be independent from management relationships with a DFHC (Licensed Insurer) or any of its subsidiaries if —
the director is employed by the DFHC (Licensed Insurer) 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 DFHC (Licensed Insurer) or any of its subsidiaries;
a member of the director’s immediate family —
is employed by the DFHC (Licensed Insurer) or any of its subsidiaries as an executive officer whose compensation is determined by the Remuneration Committee or the Board of the DFHC (Licensed Insurer) (as the case may be) 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 DFHC (Licensed Insurer) or any of its subsidiaries; or
the director 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 DFHC (Licensed Insurer) or any of its subsidiaries.
Subregulation 3
Without limiting paragraph (1)(b) but subject to regulation 14 or 22 (as the case may be), a director is not considered to be independent from business relationships with a DFHC (Licensed Insurer) or any of its subsidiaries if —
the director is also 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, which carries on business for purposes of profit —
such corporation, firm, limited liability partnership or sole proprietorship carries on business for purposes of profit to which the DFHC (Licensed Insurer) or any of its subsidiaries has made payments; or
from which the DFHC (Licensed Insurer) or any of its subsidiaries has received payments,in the current or immediately preceding financial year of the DFHC (Licensed Insurer) or any of its subsidiaries; or
the director is receiving or has received, any compensation from the DFHC (Licensed Insurer) or from any of the DFHC (Licensed Insurer)’s subsidiaries (other than compensation received for his or her services as a director or as an employee) at any time during the current or immediately preceding financial year of the DFHC (Licensed Insurer) or any of its subsidiaries.