SEC sets term limit for independent directors

The Securities and Exchange Commission (SEC) has formalized its plan to enforce a mandatory nine-year cap on independent directors, while providing them with security of tenure at the same time.

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The SEC has issued a draft memorandum circular, which sets the rules on the duration of term and amends its rules on term limits of independent directors.

The issuance is expected to strengthen the independence of independent directors as well as to align with the international best practices under Republic Act 11232, otherwise known as the Revised Corporation Code of the Philippines.