On 9 July 2018, the China Banking & Insurance Regulatory Commission (CBIRC) issued ‘Regulations Governing Independent Directors for Insurers’ (Regulations). Key points of the Regulations are:
- The Regulations apply to domestic-invested PRC insurance holding companies, insurance companies, insurance asset management companies and insurance mutuals (collectively ‘DIIs’). Foreign-invested insurers in China are encouraged to apply the Regulations by way of best-practice guidance.
- The Regulations require that all DII boards be comprised of a minimum of three, and in any event no less than one third, independent directors. For DIIs with a controlling shareholder holding more than 50% of shares, the Regulations require (unless otherwise stated) independent directors to occupy at least half of all board seats.
- DIIs are obligated to comply with these Regulations’ independent director quotas no later than the end of 2019.