Media giant GMA Network Inc. has pushed back against a newly issued memorandum circular by the Securities and Exchange Commission (SEC) that limits the tenure of independent directors.
The SEC circular sets a maximum of nine years for independent directors to serve on a company’s board, with the rule applied retroactively starting from 2012.
If enforced, the policy would affect two of GMA Network’s long-serving independent directors: former Chief Justice Artemio Panganiban and former Central Bank governor Jaime Laya, both of whom have been part of the network’s board for nearly two decades.
In a statement, the Gozon-led company argued that the SEC is overstepping its authority, claiming that the memorandum circular violates certain provisions of the 1987 Constitution.
SEC Chairperson Francis Lim, however, stood firm on the policy, emphasizing the need to strengthen corporate governance and eliminate entrenched boardroom practices.
“We will stand our ground. Our people clamor against political dynasties—so our public companies must reject boardroom entrenchment. No double standards,” Lim said in an interview.
He added that reforms are necessary to improve market confidence and competitiveness.
“We must raise our governance standards to restore investor confidence. Our stock market has been falling behind.”
The dispute highlights growing tensions between regulators and major corporations over governance reforms aimed at aligning Philippine business practices with global standards.