SEC sets term limit for independent directorsMANILA, Philippines — The Securities and Exchange Commission (SEC) has set a term limit for independent directors to strengthen director independence and align with international best practices. “A strict term limit ensures that independent directors maintain the objectivity and impartiality required to serve the very purpose envisioned under the law,” he said. This is provided that the cumulative service as independent director has not yet reached the nine-year maximum limit. Independent directors of government-owned or controlled corporations will be governed by the terms and limitations in their respective charters. Covered companies that breach the maximum cumulative term limit per independent director per year will be subject to a basic penalty of P1 million and a continuing penalty of P30,000 for every month that the independent director holds the seat.

Source: Philippine Star January 27, 2026 16:39 UTC