SEC Reviewing Corporate Governance Rules On Independent Directors: Chairperson Francis Lim

Securities and Exchange Commission (SEC) Chairperson Francis Lim said the agency is reviewing a proposal to grant security of tenure for Independent Directors of publicly listed firms.

Speaking at a Financial Executives Institute of the Philippines forum, Lim explained that while Independent Directors currently serve a maximum of nine years, they often risk non-reelection if their views differ from controlling shareholders. He said the proposal aims to allow Independent Directors to express their positions freely during their term. Lim also stressed that the nine-year cap should remain without exemptions, as experienced Directors can take on roles in other companies. He clarified that the proposed framework is still under study and will be part of a broader Corporate Governance circular.