Regulatory Alerts2007-10-31 | TED-FEM-FPC-GEN-01-133-07Guidelines for the Appointment of Independent Directors
This circular from the Central Bank of Nigeria outlines guidelines for appointing independent directors in banks. The purpose is to ensure best Corporate Governance practices and maintain objectivity on the boards of financial institutions. To qualify as an independent director, individuals must not have direct business relationships with the bank or its affiliates, nor serve on any subsidiary's board. They should possess relevant academic qualifications, significant work experience, and expertise in listed companies and banking regulations. The remuneration is limited to sitting allowance, fees, and reimbursable expenses, and independent consultants must evaluate their performance annually. Independent directors can serve for a single term of 4 years with a maximum of two consecutive terms.