Should There Be “Independent Directors” in the GOCC Sector?

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DEAN CESAR L. VILLANUEVA

While I was the incumbent Chair of the Governance Commission for GOCCs (GCG), I had a short conversation with Securities and Exchange Commission (SEC) Chair Teresa J. Herbosa who encouraged me to institute within the GOCC Sector the system of independent directors, which she found to be foremost feature of corporate governance reforms in the private sector. In the “publicly-held corporations” (PHCs), independent directors are elected in order to represent the public interests, as distinguished from the regular directors who represent primarily the stockholders’ interest. I had thought deeply on the issue, and eventually came out with the conclusion that in the public corporate sector, the institution of the system of independent directors would by duplicative, if not a surplusage, for the following reasons:

Apr 3 - Comparing Corporate Governance Regimes Between PLCs and GOCCs (3 issue)

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