The Securities and Exchange Commission (SEC) said it will maintain its position on its nine-year tenure limit for independent directors as it considers its response to a petition challenging the rule, which it said is aimed at raising governance standards and restoring investor participation.fiDense.
“We will stand our ground. Our people speak out against political dynasty rule – so our public companies must reject interference in the boardroom. No double standards. We must raise our governance standards to restore investor engagementfiDanes,'' SEC Chairperson Francisco Ade. Lim said in a Viber message on Monday.
He said the regulator is preparing its response to the petition fiGMA Network, Inc. led by
Last week, GMA Network said this fiLed a petition before a Makati court seeking to quash an SEC rule imposing a nine-year term limit on independent directors of publicly listed companies.
“We must raise our governance standards to prevent fraud by investorsfiDense. Our stock market is lagging behind. Now is the time to act – and we call on everyone to step up for the sake of our country,” Mr Lim said.
GMA Network said it filed a petition for certiorari on March 26, seeking to quash the SEC's memorandum.
The company is also seeking a temporary restraining order from the court to suspend the implementation of the rule until the case is pending. It said the memorandum would require replacement of the two existing independent directors without SU.marginal forceAppropriate time to conduct a full investigation process.
SEC Memorandum Circular No. 7, signed on January 26, states that an independent director is elected for a one-year tenure and can serve in the same listed company for a maximum cumulative period of nine years.
The circular came into effect on 1 February. Under the Memorandum, independent directors elected before its effectiveness are also covered under the nine-year limit, starting from calendar year 2012. -Ashley Erica O. jose