The Regional Trial Court (RTC) of Makati, Branch 38, has denied the application for a Temporary Restraining Order (TRO) filed by GMA Network, Inc. against a memorandum circular issued by the Securities and Exchange Commission (SEC), which enforces stricter term limits on independent directors of publicly listed companies.
GMA Network filed a petition for certiorari on March 26, seeking to nullify SEC Memorandum Circular No. 7 (MC 7). The petition included an urgent request for the issuance of a TRO and/or a writ of preliminary injunction, citing the need for immediate relief ahead of its originally scheduled Annual Stockholders’ Meeting (ASM) in May 2026.
However, during court proceedings, the SEC—represented by the Office of the Solicitor General—presented evidence showing that GMA Network’s board had already approved the postponement of its ASM to December 2026. The court noted that this key development was not disclosed in the company’s petition.
The RTC found that the omission created a misleading impression of urgency. As a result, the court ruled that no “extreme urgency” existed to justify the issuance of a TRO, emphasizing that GMA Network now has sufficient time to identify and appoint independent directors in compliance with SEC regulations.
In a prior statement addressing the broader issue, SEC Chairperson Francis Lim underscored the importance of strengthening corporate governance standards.
“Our people clamor against political dynasties—so our public companies must reject boardroom entrenchment. No double standards,” Lim said.
He added, “We must raise our governance standards to restore investor confidence. Our stock market has been falling behind. The time to act is now—and we call on everyone to step up for the sake of our capital markets.”
The case highlights ongoing efforts by the SEC to promote transparency, accountability, and good governance practices among publicly listed firms in the Philippines.
