GMA Network names independent directors

GMA NETWORK, Inc. has nominated former Chief Justice Reynato S. Puno and former Deutsche Bank Philippines Chief Country Officer Enrico S. Cruz as independent directors, replacing two long-serving board members following the company’s decision to drop its lawsuit against a Securities and Exchange Commission (SEC) rule on director tenure.

GMA Network said in a stock exchange disclosure on Thursday that Mr. Puno and Mr. Cruz have been nominated to replace independent directors Artemio V. Panganiban and Jaime C. Laya, who have served on the board for nearly two decades.

The board changes come after GMA Network withdrew its lawsuit questioning an SEC regulation that limits the tenure of independent directors of publicly listed companies to nine years.

Last week, the company said Makati Regional Trial Court Branch 138 approved its motion to withdraw the case, which also sought a temporary restraining order against the SEC rule.

The court earlier denied the request for a restraining order, saying the company failed to establish sufficient evidence of actual or imminent harm arising from the regulation.

The SEC’s nine-year term limit is intended to strengthen board independence by preventing independent directors from serving for extended periods that could compromise their objectivity.

Mr. Panganiban, a former chief justice, and Mr. Laya, a former central bank governor and Finance secretary, have served as independent directors of GMA Network for almost 20 years.

The nominations will be subject to shareholder approval.

Separately, the media company reported an 87% decline in attributable net income for the first quarter to P102.47 million, as weaker advertising revenue weighed on earnings.

Shares of GMA Network fell six centavos to close at P4.82 each. — Ashley Erika O. Jose