The China Banking and Insurance Regulatory Commission (CBIRC) has amended its rules regarding insurers’ appointment of directors.
The additions to the commission’s Independent Director Management Measures of Insurance Institutions state that major shareholders of insurance companies are forbidden from nominating independent directors, reported Asia Times.
CBIRC’s amendment also adjusted the number and proportion of independent directors, with insurers to include at least three independent directors on their boards, and not less than one-third of the total number of board members.
Meanwhile, for insurers that have controlling shareholders holding over 50% of shares, the proportion of independent directors should be more than half.
The move was welcomed by an anonymous official, who serves as an independent director at an insurance company.
“Two people are still too weak,” the official said, adding that the increase in independent directors will make it easier for them to do their jobs.