The PSE board also unanimously voted former Supreme Court Justice Jose Vitug to occupy the seat vacated by former bourse chairman Alicia Arroyo who resigned last year to allow her to attend to her responsibilities as congressional wife.
"This board action was adopted in the spirit of cooperation with the Securities and Exchange Commission (SEC) and is without prejudice to the legal position of the exchange on the matter," the PSE said.
The PSE board will be composed of seven brokers and eight non-brokers representing institutional investors and other market participants.
Of the non-broker director seats, four shall represent interests of issuer companies who shall be recommended by any listed company, Finex, PCCI, one shall represent the interests of investors who shall have been endorsed by the SSS, GSIS or a member of the Bankers Association of the Philippines. The remaining one shall represent the interests of market participants recommended by the Investment Houses Association of the Philippines.
Over the last three years, the PSE elections has been marred by controversies on the election of non-broker directors who hold majority of the board. Under the circular issued by the SEC in 2002, no independent director should be allowed to solicit votes for himself or be subject to an election by stockholders. The non-broker directors are crucial in the election of the PSE chair.
In 2003, the nomelec figured in a conflict with brokers when it reappointed four incumbent independent directors and disqualified nominees of the group led by businessman-stockbroker Robert Coyiuto. Several brokers said the Nomelec’s decision favored the group of Arroyo who subsequently won as PSE chairman. – Zinnia dela Peña