PSE Board Fight Umiinit as SEC Pushes Term Limits

A major governance fight is heating up at the Philippine Stock Exchange, with SEC chair Francis Lim and veteran stockbroker Vivian Yuchengco on opposite sides of a term-limit push for broker-directors. The dispute goes beyond one board seat and could reshape how governance rules are enforced in the local market.

Rappler reported that the latest flashpoint is a proposal to impose a 10-year cumulative term limit on broker-directors at the PSE, whether their service is continuous or broken up. Under the plan, a broker who has served five cumulative years would also need to take a two-year break before running again.

The proposal would directly affect several long-serving broker-directors, including Yuchengco, who has served for 28 years, along with Eddie Gobing, Wilson Sy, and Diosdado Arroyo. Supporters of the move argue that long tenure can lead to boardroom entrenchment and weaken fresh oversight.

This battle comes after the SEC earlier issued Memorandum Circular No. 7, Series of 2026, which tightened term limits for independent directors in publicly listed companies and imposed stiff penalties for violations. GMA Network challenged that circular in court, but the Makati RTC, according to the report, denied its bid for a temporary restraining order.

For Yuchengco and other critics, the question is whether the regulator can effectively add new qualifications through a circular when shareholders believe they should choose their own representatives. For the SEC, governance rules are not just technical paperwork — bantay ito against weak oversight, selective enforcement, and investor distrust.

Source: https://www.rappler.com/business/sec-francis-lim-vs-vivian-yuchengco-philippine-stock-exchange-board-term-limits/