The Securities and Exchange Commission has released a pair of provisions to regulate the appointment of independent directors to a company in which the directors have already served in some capacity.
According to BusinessWorld Online, the SEC has determined that resigned company directors must wait two years before returning to a company as an independent director. In the event that an individual has assisted the company’s board in a non-director capacity, he/she must wait one year.
This second provision includes anyone who served as chairman emeritus, an ex-officio officer or director, or anyone who served on an advisory board.
SEC Secretary Gerard M. Lukban says the new provisions are designed to insulate former company officials from a given firm before returning them to the board.