The Philippine Securities and Exchange Commission reported that the Makati Regional Trial Court denied GMA Network’s application for a temporary restraining order against the rule limiting independent directors of publicly listed companies to a cumulative nine years of service at the same company, calculated from 2012. The rule took effect on February 1. Directors who reach the limit may no longer serve as independent directors of that company but may be elected as regular directors. The court found no extreme urgency after evidence showed that GMA had moved its annual stockholders’ meeting from May 20 to December 9, giving it time to identify candidates who comply with the rule. GMA’s underlying petition seeks to nullify the measure, while the SEC maintains that the Revised Corporation Code authorizes it to prescribe term limits and other requirements for independent directors.
2026-03-31Philippine Securities and Exchange Commission
Philippine Securities and Exchange Commission reports court denial of restraining order against nine-year independent director term limit
The Makati Regional Trial Court denied GMA Network’s request to temporarily block the Philippine Securities and Exchange Commission’s nine-year cumulative term limit for independent directors. The court found no extreme urgency because GMA had postponed its annual stockholders’ meeting from May 20 to December 9. GMA’s petition seeking to invalidate the rule remains the underlying proceeding.