Published April 23, 2009

SINGAPORE'S BOARD OF BUSY DIRECTORS
Multi-tasking not a problem

They say they can juggle several board seats and discharge their responsibilities

By JAMIE LEE
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(SINGAPORE) There is a league of extraordinary gentlemen - 51 in all - whose individuals sit on at least six company boards, raising questions of whether they can take on the responsibilities.

Mr Ong: Does not think that companies chose him for his political links

But multi-tasking is not a problem, say some of these directors, who believe they can handle the numerous board seats.

They also argue that they were invited to sit on many boards mainly because of their professional expertise, rather than prompted by political ties.

A recent study by the National University of Singapore's Corporate Governance & Financial Reporting Centre showed that while most directors in Singapore sit on a single company board, a small group of 51 directors out of 3,816 are holding more than five seats.

The study, based on data from annual reports published between Jan 1, 2008 and Dec 31, 2008, showed that out of the 16 directors who have eight or more posts, 10 are former or current members of Parliament (MP), or ex-civil servants.

Lien Kait Long, who sits on the boards of six S-chip companies, told BT that as a retiree, he has time on his hands to look into the affairs of the companies.

MP, lawyer and holder of nine current directorships Ong Kian Min, said that having many posts is 'manageable' for him, given his experience in handling several on-going legal matters such as joint ventures, IPO preparations and business briefings, at a single time.

'For someone who is used to handling 20, 30 active cases, it is manageable,' the lawyer from Drew & Napier told BT via e-mail.

Mr Ong, who is the MP for Tampines GRC, also did not think that companies chose him because of his political links.

'Anyone who is familiar with doing business in Singapore would know that political influence is minimal and any exercise of any political connection or lobbying is frowned upon by our ministers and government servants,' said Mr Ong, who said he was invited to boards because of his legal training.

'Companies also know that they cannot use PAP MPs for the purpose of 'window dressing' the board because PAP MPs have to abide by strict rules of conduct and are not 'yes' men to rubber stamp their decisions,' he added.

Partner at law firm Shook Lin & Bok Robson Lee, who holds several directorships, noted there was no evidence that independent directors who hold concurrent directorships are not able to properly discharge their duties and responsibilities.

'A board should comprise of independent directors who have a sufficient amount of practical experience, and not merely because the independent directors satisfy an idealistic paper check-list,' he said.

Lien Kait Long, who sits on the boards of six S-chip companies, told BT that as a retiree, he has time on his hands to look into the affairs of the companies.

'I attend 100 per cent of all the meetings and fulfil my duties,' said the 61-year-old former accountant who began his 'career' as an independent director a year after his retirement in 2003.

'I am quite free,' he said, adding that he is easily available to travel to China and meet the CEOs who are based there.

The Chinese-educated director noted that while a busy period means having to attend about six meetings in a month - with each meeting taking 'half a day' - these are spread out over a year as companies have different financial year-ends.

And being able to meet and talk to CEOs based in China, he has been able to assess their characters by watching 'how they spend their money', such as looking into their dinner expenses. 'These are the fundamentals' when trying to spot fraudulent activities that have been weighing on S-Chips, he said.

Wang Kai Yuen, who has the most number of director seats, declined comment.