Dr Wise on Independent Non-Executive Directors

The latest Dr Wise’s Column explains to investors that Independent Non-Executive Directors (INEDs) play an important oversight role in a listed company. The role and function of INEDs should not be underestimated.

The SFC today publishes the October issue of Dr Wise’s Column, What Role Do Independent Non-Executive Directors Play in Companies?, on its InvestEd website at www.InvestEd.hk.

Every Hong Kong listed company is required to appoint at least three INEDs. They represent an independent voice on the board of directors for key company issues and ensure that the interests of all shareholders are considered. They also scrutinise and monitor the performance of the company and the board.

INEDs have significant responsibilities and the role should not be taken lightly. Any prospective INED should seriously consider whether they have sufficient time to fulfil their duties and obligations as an INED.

Dr Wise is a fictitious character. Through his column, he talks to investors about the key issues of investing and regulatory thoughts.

Dr Wise’s Column is published on the last working Tuesday of every month. From time to time, additional articles in the form of special issues may be published on topical matters. The column is posted under the “Features & Dr Wise” section of the InvestEd website. Investors are welcome to send their feedback and questions to Dr Wise by email to InvestEd@sfc.hk.

Ends

Note:

1. News media are welcome to carry the column with acknowledgement of the source of the information.