Regulatory Alerts2022-03-02
Disqualifications of Directors, Trustees, and Officers of Corporations and Guidelines for Their Removal
The Securities and Exchange Commission of the Philippines issued these guidelines to implement Sections 26 and 27 of the Revised Corporation Code, establishing strict disqualification criteria for corporate directors, trustees, and officers. Individuals are barred from holding office if they have been convicted of offenses carrying imprisonment exceeding six years, found administratively liable for fraud, or sanctioned by foreign authorities for similar misconduct within five years prior to appointment. The Commission may order the removal of disqualified officials upon verified complaint or motu proprio after due process, while retaining the authority to sanction boards that knowingly retain ineligible members.
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