GMA Network drops lawsuit vs SEC director term rule

GMA Network, Inc. said a Makati court has allowed it to withdraw its lawsuit challenging a Securities and Exchange Commission (SEC) ruling that imposes a nine-year term limit on independent directors of publicly listed companies. The development was disclosed in a stock exchange filing on Thursday, as reported by BusinessWorld .

The SEC rule, which took effect in 2021, limits independent directors to a maximum of nine consecutive years. GMA Network had initially sought to have the rule declared unconstitutional, arguing it infringed on shareholders' rights. The Makati Regional Trial Court Branch 138 approved the network's motion to withdraw the case, effectively ending the legal challenge.

With the withdrawal, GMA Network is now required to comply with the term limit, potentially affecting the tenure of its current independent directors. The move aligns the broadcaster with the SEC's corporate governance standards, which aim to promote board independence and accountability among listed firms.