BSP orders Equitable PCI Bank to expand its board

Citing possible violations of the Corporation Code, the Bangko Sentral ng Pilipinas (BSP) has ordered Equitable PCI Bank to expand its 15-man board of directors to create a voting seat for its president, Deogracias Vistan Jr.

BSP sources told reporters yesterday that the bank has been directed to call a special stockholders’ meeting to amend its articles of incorporation to correct the discrepancy created by the shakedown that led to Vistan’s appointment as bank president and chief executive officer.

Already a prominent banker, Vistan was vice chairman of Metropolitan Trust and Banking Corp. when he was offered the position at Equitable PCI Bank following the resignation of his predecessor, Wilfrido Vergara.

However, since Vergara only gave up his position as president and retained his seat as a member of the board of directors. Being the president, Vistan now sits as an ex-officio member of the board with no voting rights. However, if Vistan will be given voting rights, there will, in effect, be 16 voting members of the board.

According to the BSP source, this situation needs to be remedied by amending the bank’s articles of incorporation and expanding the membership of its board of directors. This will require the holding of a special stockholders’ meeting.

Vistan was appointed to sit at the helm of Equitable PCI Bank at the height of the impeachment proceedings against former President Joseph Estrada.

In a desperate attempt to clean up its image, the bank offered Vistan the position of president and chief executive officer in June after a stormy stockholders’ meeting in April. – Des Ferriols