Confusion seen to mar PSE polls

Except for the non-brokers’ slate, the upcoming elections of the new board of governors in the Philippine Stock Exchange (PSE) appear headed toward confusion due to the implementation of the new Securities Regulation Code.

Sec. 33-2 of the SRC states that brokers shall comprise not more than 49 percent of the PSE board and shall proportionately represent the Exchange in terms of volume/value of trade and paid-up capital.

There are 15 contenders for the seven seats allotted to brokers in the elections this Saturday while the majority of the slots in the 15-man board of governors is reserved by law for non-brokers.

The eight non-brokers expected to be elected are PLDT’s Manuel Pangilinan, Ateneo’s Fr. Joaquin Bernas, SGV’s Washington Sycip, Filsyn Corp.’s Patricio Lim, GSIS’s Winston Garcia, Benpres’ Eugenio Lopez III, former NEDA director-general Cayetano Paderanga and former Meralco president Mario Camacho. The last three have accepted their nominations to sit for the first time in the PSE board while the others will serve out the remaining period in their two-year term.

But in the case of the broker-members, the elections will be guided by the SRC provision which strictly mandates equal representation of brokers – categorized into big, medium and small brokers.

However, PSE president Ramon Garcia said the candidates have organized themselves into two slates with representations "mindful of the above-quoted provision." He said aside from turnover, their paid-up capital are widely dispersed, ranging from P13.635 million to P1.079 billion.

Former PSE chairman Harry Liu of Summit Securities leads one party which includes Emmanuel Edward Co of Aurora Securities, Omar Cruz of Citicorp Securities, Filomeno Francisco of AB Capital, Federico Lim of Belson Securities, Joseph Roxas of Eagle Equities and Paulino Soo of Abacus Securities.

On the other hand, incumbent PSE chairman Felipe Yap of F. Yap Securities heads the other party which includes other relectionists: Ang Biao of BA Securities, David Go of David Go Securities, Gregorio Kilayko of ABN Amro Asia Securities and Vivian Yuchengco of First Resources Management and Securities Corp.

The other candidates are former PSE chairman Robert Coyuito Jr. of R. Coyuito Securities, Eddie Gobing of Lucky Securities and Juanita Cueto of Yaptinchay Securities.

"When the two slates were prepared, the provision of the law was taken into consideration," Garcia said.

But since he members will vote on an individual basis and not by party affiliation, the election results may not turn out with the right mix, leaving the PSE in a quandary as to how to resolve the issue.