From Where We Sit
Toward a more independent ‘Independent Directors’
The year 2016 will be a period in history when we see the changing of the guards. We should be ready for the new administration at the end of next month. And in a parallel world of corporate finance, the listed or public companies in the country shall witness changes in their Independent Directors (IDs) if they start implementing the new rules regarding these officials. In December 2011, the Securities and Exchange Commission (SEC) issued Memorandum Circular (MC) 9, which, among others, limits the term of the independent directors to a total of 10 years, with two years of a “cooling-off” period between two terms of five consecutive years for listed, public and mutual fund companies. As 2016 is the fifth year of effectivity for the Circular, we should start seeing its implementation in the coming months.