MANILA, Philippines – The Securities and Exchange Commission (SEC) is urging all publicly listed companies to practice good corporate governance as it seeks to make Philippine firms at par with its Southeast Asian counterparts.
In an advisory, the corporate regulator has identified measures on publicly listed companies can uplift their corporate governance practices.
“In view of the best corporate governance practices in the Asean Corporate Governance Scorecard, and in light of the commission’s vision to develop a strong governance culture for the
Philippines, the commission highly recommends to all publicly-listed companies to adopt best corporate governance practices,” the SEC said.
The SEC suggests that the chairman of the board and the chief executive officer (CEO) of a firm should be separate individuals, adding that its chairman should not have been the company’s CEO in the last three years.
The corporate regulator also said at least one female independent director should be elected and independent non-executive directors should make up at least 50 percent of the company’s board of directors.
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In terms of financial reports, the SEC said audited financial reports of a company should be released within 60 days from the end of the fiscal year.
Notice of annual stockholder’s meeting, meanwhile, should be released at least 28 days before the meeting, it added.
SEC chairperson Teresita Herbosa earlier said Philippine listed companies are still behind its Southeast Asian counterparts when it comes to good corporate governance.
“Between going beyond what is required by law and just complying by the minimum, they should go beyond,” the SEC chief has said.
Herbosa specified that only about a fifth or 50 of the more than 250 listed companies are currently going beyond “what is required.”
SEC said good corporate governance is essential in developing capital markets by increasing share value while protecting investors. Corporate governance principles also provide guidance on how corporations should operate.
