When Independent Non-Executive Directors (INEDs) start wearing the CEO hat, the Securities and Exchange Commission (SEC) says, “Hold up!” Nigeria’s corporate watchdog is putting its foot down on boardroom musical chairs and setting fresh limits on how long directors can stick around.
The SEC has just dropped a firm directive aimed at public companies and capital market operators. The message? No more flipping INEDs into Executive Directors or CEOs within the same company or group. Why? Because it kills the independence that’s supposed to keep boards honest and objective.
But that’s not all. The SEC also capped the tenure of directors in significant public interest capital market operators:
- 10 consecutive years in the same company
- 12 consecutive years within the same group
And here’s the kicker: stepping down after these limits means a mandatory 3-year cool-off period before a former CEO or Executive Director can become Chairman — and even then, that chair gig maxes out at 4 years.
These rules take effect immediately, so companies better rethink their board appointments and succession plans pronto. The SEC reminds everyone that past years served count toward these limits — no grandfathering loopholes here!
CorporateGovernance #SECNigeria #BoardroomShakeUp #INEDs #DirectorsTenure #CapitalMarkets #NigeriaBusiness #GovernanceReform
Photo credit: sec.gov.ng
Leave a comment