Philippines SEC Enforces 9-Year Cumulative Term Limit for Independent Directors to End Boardroom Entrenchment

The Philippine Securities and Exchange Commission's Memorandum Circular No. 7, Series of 2026, permanently bars independent directors from re-election after a cumulative nine-year tenure in the same listed company, effective February 1, 2026, to preserve genuine boardroom independence. The rule, which has triggered legal challenges and high-profile boardroom disputes, directly confronts the phenomenon of 'familiarity replacing objectivity' among long-serving NEDs. For SEA founders and CEOs, this is a live signal that board composition renewal and director independence are being enforced—not just recommended—across ASEAN markets.