SECTION 3: NOMINATION AND APPOINTMENT PROCESS

50 | Nominating Committee Guide • Other principal commitments 27 . • Previous employment held in the company, if any. The NC may refer to resumes and conduct interviews with the candidates to assess not just their suitability but also whether the candidates understand the roles and the responsibilities involved in their appointments. 3.6.8 Where a candidate already serves on multiple Boards, the NC should carefully consider whether he is able to dedicate sufficient time and attention to the affairs of the company 28 , and whether there is any potential conflict of interest should his nomination be approved. Some countries, through the regulators or professional associations, specify the maximum number of listed Board seats that a director may hold, typically between five and seven listed directorships. Although the Code does not place a limit on the number of Boards that a director should serve on, it is noted that less than 21 per cent of directors hold more than two directorships on Singapore- listed companies 29 . Each Board, with the recommendation from the NC, is required to decide for itself the maximum number of Board representations a director may hold and disclose that number in the annual report 30 . Provisions should be in place to address the competing time commitments that arise when directors serve on multiple Boards. For example, the NC could establish different limits on the number of directorships of EDs versus NEDs, and also for NEDs who are engaged in full-time employment or have other principal commitments. 27 The term “principal commitments” shall include all commitments which involve significant time commitment such as full-time occupation, consultancy work, Committee work, other listed or non-listed company Board representations and directorships, and involvement in nonprofit organisations. Where a director sits on the Boards of non-active related corporations, those appointments would not normally be considered principal commitments. 28 Provision 4.5 of the Code. 29 Source: The Singapore Directorship Report 2018 published by SID. 30 Provision 4.5 of the Code. 3A-8 3B-1