New rules require business experience for SOE chairs
The changes also revise the eligibility requirements for individuals appointed as chairpersons.
The Privatisation and Corporatisation Board (PCB) has revised the rules governing the appointment of chairpersons of state-owned enterprises, introducing new criteria requiring business experience.
At its meeting held on Wednesday, the PCB decided to strengthen the procedures for appointing and removing government representatives from the boards of government-owned companies, including commercially-owned government entities. The changes also revise the eligibility requirements for individuals appointed as chairpersons.
Previously, chairpersons were selected based on scoring at least 60% in interviews conducted by the PCB and demonstrating knowledge, skill, and long-term planning capabilities.
Under the amended rules, candidates for the role of chairperson must meet at least one of the following criteria:
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Hold a qualification equivalent to Level 7 of the National Qualifications Framework (Master’s degree or postgraduate qualification) and have at least five years of experience in a business-related field; or
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Possess at least seven years of experience in business operations or at management level.
Additionally, candidates must demonstrate diverse experience and capabilities relevant to fulfilling board responsibilities, along with scoring above 60% in the PCB’s assessment interview.
The changes are intended to ensure that chairpersons of government companies are appointed based on relevant qualifications and experience in managing or operating businesses.
