The Ministry of International Trade and Industry, in responding to appeals from the Malaysian Shipowners Association (MASA), said it would recommend the amend of the provisions relating to the chapter 15.60 of the Corporate Governance of the Kuala Lumpur Stock Exchange that limits the number of directorships that could be held by an individual in public-listed companies.

The rule, which allows a director of a public-listed company to serve as a director of 10 public-listed companies and 15 private companies, has been pointed out by MASA as being incongruous to the requirements of the shipping industry.

Unintentionally, the ruling (limiting the directorships) has affected the shipping industry in which actively pursues “one company, one ship” policy for financial, legal and other operations reasons.

The Minister, Datuk Rafidah Aziz said she accepted the view from the shipowners that the ruling could hamper the development of the industry.

At the last dialogue with the MITI, the Vice-chairman of MASA, Tan Sri Datuk Halim Mohammad, said the policy (of one company for one ship) is aimed at containing the liability of each vessel on the fleet of the company.

Shipping companies generally practise a “one ship, one company” policy to ensure that each ship of the company’s fleet is legally separate but shares the same board of directors.

Halim said in cases involving joint ventures, the foreign partners usually want active representation in the board and not just nominees.

Directors of shipping companies shoulder heavy responsibilities which cannot be simply delegated to anyone as expertise and experiences are needed.

Under the Oil Pollution Act (1990) the US, for instance, imposes severe penalty on shipowners, including directors of companies.

Halim also said ship owning being a highly capital intensive business, financial institutions require directors of shipping companies to put up a personal guarantee for loans.

“In the light of the practical problems faced by local shipping companies as a result of the ruling under KLSE’s Corporate Governance, the Government must review this incongruous feature and quickly address the issue by exempting directors of shipping companies and allow them to be represented in as many companies through which they chose to own vessels,” he said.

Recently, at the official opening of Halim Mazmin new office in Kuala Lumpur and launching of its new corporate logo, Datuk Rafidah Aziz said she had taken note of the difficulties posed by the new KLSE requirements and that she would forward MASA’s appeal to amend the ruling.

She said it was only through the representation from MASA that she had been made aware of the importance of “one ship, one company” policy and that she fully appreciated the concerns of the shipowners.