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In the Kaplan Textbook it says that NED Must not work in the company for more than nine years
Howerver later onwards it says this
“Executive directors and NEDS would typically be required to stand fpr re-election by shareholders every three years. NEDs who have been with the company over nine years must stand for re-election on an annual basis”Sir how could there be a statement like this saying that NEDS would have to be reelected every year if they are working for nine years. Assuming that the NED does get reelected again…wouldn’t this go against the concept that NEDs should not serve a company more than nine years?
The current Corporate Governance Code states:
10. The board should identify in the annual report each non-executive
director it considers to be independent. Circumstances which are
likely to impair, or could appear to impair, a non-executive director’s
independence include, but are not limited to, whether a director:………• has served on the board for more than nine years from the date of
their first appointment.18. All directors should be subject to annual re-election. The board
should set out in the papers accompanying the resolutions to elect
each director the specific reasons why their contribution is, and
continues to be, important to the company’s long-term sustainable
success.As far as I can see, there are no other rules.
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