The Securities and Exchange Commission has ended the terms of several of the country’s most sought-after independent directors, according to a report by Philstar Biz.
Under Philippine corporate-governance rules, independent directors are not meant to serve indefinitely; their appointments are subject to maximum consecutive terms and cooling-off periods. The SEC’s recent decision signals a stricter application of these provisions, forcing listed companies to rotate their board memberships and bring in fresh perspectives.
The move is likely to create vacancies on high-profile boards and prompt a search for qualified replacements who meet independence standards. For the directors affected, the exit may be temporary if they become eligible again after the mandated break, while corporations adapt to a refreshed boardroom landscape.