GMA gets court OK to withdraw case vs SEC

MANILA, Philippines — Broadcast giant GMA Network Inc. has bowed out of its legal challenge against the order of the Securities and Exchange Commission (SEC) to set term limits on independent directors.

In a disclosure to the Philippine Stock Exchange, GMA said it has been granted approval by the Makati Regional Trial Court (RTC) to withdraw its petition for certiorari against the SEC.

“In the order, the court granted the company’s withdrawal or desistance from pursuing certiorari petition,” GMA said.

The network’s certiorari petition prayed for the issuance of a temporary restraining order, writ of preliminary injunction and other injunctive remedies to an SEC order. However, GMA decided to back down from the legal fight as endorsed by its directors in a special meeting on May 21.

GMA was challenging the legal framework of SEC’s Memorandum Circular 7, Series of 2026 in the withdrawn filing. The memorandum, issued in January, sets up a nine-year cap on the service of independent directors in a company.

The SEC said independent directors who have reached the limit would be barred from reelection in the same position.

GMA said the order would compel it to replace two independent directors in former chief justice Artemio Panganiban and veteran banker and economist Jaime Laya without sufficient time to vet candidates.

In response, SEC chairman Francis Lim said the memorandum was created to shore up business confidence in Philippine firms by rejecting boardroom dominance by a few individuals.

The legal back-and-forth between GMA and SEC dragged on for several weeks. GMA had asked SEC’s approval to push its annual stockholders’ meeting (ASM) to a later date of Dec. 9, 2026, from the original plan of May 20.

The SEC denied the request, ordering GMA to conduct the meeting as planned. Afterward, GMA had insisted on its plea, filing a request for reconsideration, only for the SEC to deny it again.

GMA is the most vocal among listed firms in opposing the term limits on independent directors, with its fellow corporate giants easily complying with the new rules.

Recently, listed companies like Philippine Airlines have appointed new independent directors to the boardroom following their ASMs.