KUALA LUMPUR (Sept 30): Tan Sri Surin Upatkoon has resigned from his position as managing director of MPHB Capital Bhd, to comply with Bank Negara Malaysia's policy document on corporate governance.

“The document by the central bank provides that there must be a clear separation between substantial shareholder and the management,” MPHB said in its filing to the exchange today.

MPHB is the financial holding company of MPI Generali Insurans Bhd, and Upatkoon has a 36.63% stake in the company, held via Casi Management Sdn Bhd.

The 67-year old tycoon has been the MD of MPHB from May 14, 2013. His daughter Ivevei Upatkoon is an executive director in the company.

On Aug 3, Bank Negara issued a set of enhanced corporate governance standards, aimed at raising the bar for financial institutions.

Licensed insurance companies and Takaful operators fall under the licensed financial institutions umbrella.

The key changes introduced in the standards include strengthened requirements on board composition, including a requirement for boards to have a majority of independent directors.

MPHB shares closed down 1 sen (0.7%) to RM1.34 today, for a market capitalisation of RM943.8 million.