Practice Note 2.3 Training for Directors with No Prior Experience
Issue Date: 6 August 2018
Effective Date: 1 January 2019
1.1 Rule 210(5)(a) provides that a director who has no prior experience as a director of an issuer listed on the Exchange (a "First-time Director") must undergo training in the roles and responsibilities of a director of a listed issuer as prescribed by the Exchange.
1.2 This Practice Note prescribes the training that a First-time Director must undergo within one year from the date of his appointment to the board ("Mandatory Training"). If any director of an issuer which is newly listed on the Exchange has not attended any training as prescribed in paragraph 2 below, such director must attend Mandatory Training by the end of the first year of the issuer's listing.
2 Mandatory Training
2.1 To fulfil the Mandatory Training requirements, First-time Directors must attend the training programmes conducted by a training provider as specified in Schedule 1 to this Practice Note.
3. Persons with Relevant Experience
3.1 The Exchange expects all First-time Directors to attend Mandatory Training.
3.2 In exceptional circumstances, First-time Directors assessed by the issuer's Nominating Committee to possess relevant experience need not attend Mandatory Training. In assessing the relevant experience, the Nominating Committee must have regard to whether the experience is comparable to the experience of a person who has served as a director of an issuer listed on the Exchange. The issuer's Nominating Committee must disclose its reasons for its assessment that the First-time Director possesses relevant experience. Such reasons shall be disclosed in the announcement of the appointment of the First-time Director as director of the issuer or in the prospectus, offering memorandum or introductory document.
3.3 Notwithstanding paragraph 3.2 above, the Exchange has the discretion to direct a First-time Director to attend Mandatory Training.
|Training Provider||Mandatory Training|
|Singapore Institute of Directors||Listed Entity Directors Programme|
|LED 1 – Listed Entity Director Essentials|
|LED 2 – Board Dynamics|
|LED 3 – Board Performance|
|LED 4 – Stakeholder Engagement|
|The First-Time Director must also attend the modules relevant to his appointment on the board of the Issuer. The modules are:|
|LED 5 – Audit Committee Essentials|
|LED 6 – Board Risk Committee Essentials|
|LED 7 – Nominating Committee Essentials|
|LED 8 – Remuneration Committee Essentials|