Sections 25-26 of the Non-bank Deposit Takers Act 2013 (the Act) set out governance requirements for licensed NBDTs that are companies or building societies.

Governance requirements

Governance requirements in the Act prevents licensed NBDTs that are subsidiaries from including provisions in their constitutions that would allow directors to act other than in the best interests of the NBDT. In addition, licensed NBDTs that are companies or building societies must have a chairperson who is not an employee of either the NBDT, or a related party, and must have at least two independent directors.

Independent directors add an independent element on the board, free from the interests of shareholders and other related parties.