Can the “training” prescribed by the board of
directors for its directors relate to any topic at all, as may be determined at
the absolute discretion of the board?
Under paragraph 15.08(2) of the Main LR, the
training that is determined by the board of directors for its directors must be
on a subject matter that aids the directors in the discharge of their duties as
directors. Thus, the board must exercise its discretion within the confines of
In this regard, the findings from annual performance
assessment of directors are useful as they provide valuable insights into the
training and development needs of directors. The board or nominating committee
will be able to prescribe the training required by its directors based on the
areas for improvement identified in the findings. In addition, the board may
also regularly request each director to identify appropriate training that he
believes will enhance his contribution to the board.
Broadly, the training should include key
developments in the legal and regulatory framework, as well as the industry
within which the listed issuer operates. The training could also cover areas
such as financial literacy, technical know-how, business and industry specific
trends, business strategies, risk management and internal control.