Two-thirds of the 15-man board of directors of Philippine Stock Exchange will soon be occupied by non-brokers.
A PSE regulatory filing showed the stockbrokers of the local bourse would elect 15 members of the board of directors during the annual stockholders meeting next month.
It said of the 15-man board, at least 10 will be non-brokers, including one president, five independent directors and four directors representing issuer, investors and other market participants.
The remaining five seats will be taken up by the brokers.
Stockbrokers used to occupy seven board seats, while non-brokers had eight seats, including three independent directors.
The reduction in the number of seats of brokers in the PSE board is in response to the Securities and Exchange Commission’s proposed rules requiring more independent directors in exchanges.
The SEC in June issued a draft memorandum circular which prescribes independent directors constitute at least 20 percent of the board of directors of corporations vested with public interest.
It said the move to have more independent directors in exchanges and other organized markets was aligned with the best practices of major and comparable markets in the region.
The SEC said in Bursa Malaysia, seven of its eight directors are non-executive directors, while in the Singapore Exchange, eight of 11 directors are independent and non-executive.
Independent directors comprise the majority of the members of the board of the Hong Kong Stock Exchange; Japan Exchange Group, which owns the Tokyo Stock Exchange and Osaka Exchange; Intercontinental Exchange Inc., which owns the New York Stock Exchange; and the London Stock Exchange.
Among the 10-non brokers nominated for this year’s PSE board of directors were incumbent chairman Jose Pardo and incumbent president and chief executive Ramon Monzon, Anabelle Chua, Ferdinand Constantino, Rolando Jose Macasaet, Edgardo Lacson, Vicente Panlilio, Teresita Leonardo-de Castro, Consuelo Garcia and Roberto Cecilio Lim.
Meanwhile, six brokers were nominated for the five-board seats reserved for stockbrokers. These nominees were Eusebio Tanco, Eddie Gobing, Vivian Yuchengco, Francis Chua, Diosdado Arroyo and Wilson Sy.
The PSE board of directors has a term of one year until their successors are elected and qualified.