Nearly a third of directors, or more than 500, would be forced to exit their boards by 2028 if a 10-year term limit – proposed by the financial regulator for banks, super funds and insurers – was extended to the ASX300.

If the tenure cap applied today, nearly 15 per cent of directors would breach the 10-year limit, which was proposed on Thursday by the Australian Prudential Regulation Authority on companies it regulates.