PSE proposes changes to board structure, trading rules

MANILA, Philippines — The Philippine Stock Exchange is pitching a set of amendments to its by-laws ahead of its annual shareholders’ meet.

In a disclosure on Thursday, the board of directors of the local bourse operator proposed five different amendments.

The proposals include deleting the second paragraph of Article V, Section 6 of the PSE’s by-laws. That specific passage prohibited the board of directors from engaging in contracts that exceeded 15% of a company’s total assets without securing approval from two-thirds of shareholders.

The next proposal specified that independent directors shall comprise a third of a board of directors, aligning with existing rules and regulations of the PSE

The third proposal looked to delete the clause that restricts a trading participant from intervening, direct or indirect, in the management, operation, administration and control of any other trading participant.

The PSE defined a trading participant as those admitted by the local bourse to trade and use its trading facilities. A participant needs to hold a securities dealer license granted by the Securities and Exchange Commission.

In connection, the fourth proposal sought to delete all references to “natural person trading participants.

Lastly, the PSE board of directors proposed that they wanted to conform to the provisions of Republic Act No. 11057, or the Personal Property Security Act.

The PSE’s board of directors will push these proposed amendments to shareholders in its annual meet on August 5. — Ramon Royandoyan