GMA NETWORK, Inc. has nominated former Chief Justice Reynato S. Puno and former Deutsche Bank Philippines Chief Country Officer Enrico S. Cruz as independent directors, replacing two long-serving board members following the corporate’s decision to drop its lawsuit against a Securities and Exchange Commission (SEC) rule on director tenure.
GMA Network said in a stock exchange disclosure on Thursday that Mr. Puno and Mr. Cruz have been nominated to interchange independent directors Artemio V. Panganiban and Jaime C. Laya, who’ve served on the board for nearly twenty years.
The board changes come after GMA Network withdrew its lawsuit questioning an SEC regulation that limits the tenure of independent directors of publicly listed corporations to nine years.
Last week, the corporate said Makati Regional Trial Court Branch 138 approved its motion to withdraw the case, which also sought a brief restraining order against the SEC rule.
The court earlier denied the request for a restraining order, saying the corporate failed to determine sufficient evidence of actual or imminent harm arising from the regulation.
The SEC’s nine-year term limit is meant to strengthen board independence by stopping independent directors from serving for prolonged periods that would compromise their objectivity.
Mr. Panganiban, a former chief justice, and Mr. Laya, a former central bank governor and Finance secretary, have served as independent directors of GMA Network for nearly 20 years.
The nominations shall be subject to shareholder approval.
Individually, the media company reported an 87% decline in attributable net income for the primary quarter to P102.47 million, as weaker promoting revenue weighed on earnings.
Shares of GMA Network fell six centavos to shut at P4.82 each. — Ashley Erika O. Jose