What is the role and required percentage of independent directors in corporations vested with public interest?
Corporations deemed vested with public interest must have independent directors constituting at least twenty percent (20%) of their board (SEC. 22, Revised Corporation Code of the Philippines). An independent director is defined as a person who is free from any business or other relationship that could reasonably be perceived to materially interfere with the exercise of independent judgment. They must be elected by the shareholders, either present or voting in absentia, during the director election. These directors are subject to SEC rules governing their qualifications, term limits, and board memberships to ensure alignment with international best practices.
02 November 2025
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