PSE defers launch of Maharlika Board

MANILA, Philippines - The Philippine Stock Exchange (PSE) has deferred the launch of the Maharlika Board, a special trading board for companies committed to excellence in corporate governance, to next year due to several issues that have yet to be threshed out with prospective applicants.

Hans Sicat, president and chief executive officer of the PSE, said the bourse continues to consult with listed companies and other stakeholders to address their concerns.

The Maharlika Board will be the first of its kind in Asia and will set the benchmark on how companies should manage their businesses.

It is envisioned to be a special listing segment for companies adhering to strict governance standards.

The PSE also said that, contrary to common misconceptions, the Maharlika Board will not favor the minority shareholders nor discriminate against the majority shareholders. It simply aims to ensure, among others, that the rights of the minority shareholders are recognized and protected, and that all shareholders of a company are given representation in the company’s board of directors.

Under the proposed rules, minority shareholders have the right to nominate the candidates for independent directors of a company. The right to nominate and elect the independent members of the board, however, is not exclusively limited to the minority shareholders.

Another important feature of the Maharlika Board, according to the PSE, is that it adheres to the one share, one vote principle which ensures that all shareholders shall be given equal rights in terms of voting for members of the board of directors and for all corporate actions requiring approval of the shareholders.

The PSE also clarified that the Maharlika Board should not be confused with other corporate governance awards, particularly that of the Institute of Corporate Directors, which has its own set of criteria. A company which might be an awardee of the ICD may not necessarily be qualified automatically to list in the MB because of the different requirements for listing on the Maharlika Board.