No managerial posts for chairmen of listed firms

The chairman of a listed public shareholding company cannot hold a managerial or/and a managing director post in the company, as per a new corporate governance code coming into effect from tomorrow.

The code also stipulates that one-third of a listed company's administrative board should have independent members. An ex-employee of a company cannot become a board member until two years have lapsed since the resignation.

One of the most important basics of corporate governance is to separate the ownership of a company and its executive administration, said Rami Al Nosoor, financial consultant, Emirates Securities and Commodities Authority (Esca), explaining the terms of the code.