TRO denied, case continues
The court denied GMA’s request for an urgent halt but set a hearing on April 16 to decide whether the rule should be suspended while the case is pending, a court order dated March 30 this year showed.
GMA’s move to reschedule its annual stockholders’ meeting from May 20 to Dec. 9 this year may have eased the urgency of its request to immediately halt the SEC rule.
For now, the SEC circular remains in effect, with regulators given 10 days to respond.
What’s at stake?
The rule imposes a nine-year cap on independent directors, applied retroactively, which could force out veteran board members including former chief justice Artemio Panganiban and former central bank governor Jaime Laya, who have both served since 2007.
GMA argues the policy was imposed too quickly and raises constitutional concerns, warning it is being pushed into a rushed search for replacements without proper vetting.
Bigger test for corporate boards
The SEC, led by chair Francis Ed. Lim, is pushing reforms aimed at tightening board independence and reducing long-tenured influence across listed firms.
The case could set a precedent on how far regulators can go in enforcing governance changes, especially when applied retroactively.
Until the court rules on the injunction, companies like GMA may need to start preparing for board turnover even as the legal fight plays out.
—Edited by Miguel R. Camus
