The Privatization and Corporatization Board (PCB) has introduced significant amendments to its regulations to ensure that Government-appointed directors in State-Owned Enterprises (SOEs) meet higher standards of competence and experience.

In a circular released on Thursday, the PCB announced changes to the procedures for appointing and dismissing Government representatives to SOE boards. The revisions are aimed at ensuring that only the most suitable and qualified individuals are selected to oversee these companies.

One of the key changes is a requirement for candidates to possess at least a Level 7 qualification under the National Qualifications Framework and five years of relevant experience. Alternatively, candidates with at least seven years of business management experience may be considered. In all cases, appointees must demonstrate the ability to contribute meaningfully to both short- and long-term strategic planning and development of the company.

While interviews have long been part of the selection process, the updated regulation clarifies and reaffirms that candidates will continue to be assessed on their ability to contribute to the company’s strategic direction and business development. A minimum score of 60 percent remains the passing mark.

As the oversight body for State-Owned Enterprises (SOEs), the PCB is responsible for ensuring strong corporate governance across Government-owned companies. These latest amendments reflect the Board’s commitment to aligning appointments and operations with Environmental, Social and Governance (ESG) principles and enhancing the long-term sustainability and accountability of SOEs.

Earlier this year, the PCB introduced other key reforms aimed at improving oversight and accountability in SOEs. These included stricter controls over loan approvals, organisational restructuring, and remuneration frameworks.