In a striking display of personal camaraderie amid high-stakes regulatory friction, former Stock Exchange chairman Ma. Vivian Yuchengco and Securities and Exchange Commission chairman Francis E. Lim maintained a friendly demeanor during the recent listing of Mynt Inc. in Taguig, despite an ongoing legal battle between them. The interaction underscored a complex dynamic where personal relationships persist even as fundamental corporate and stock market regulations are tested in court.
At the heart of the conflict is SEC Memorandum Circular No. 17, a regulatory measure that imposes a maximum cumulative term limit of ten years for broker-directors at any securities exchange. The commission issued the rule under its regulatory authority via the Securities Regulation Code and the Revised Corporation Code, aiming to elevate corporate governance standards, enhance market transparency, and safeguard the integrity of the capital market to attract global investments.
Yuchengco, alongside PSE director Eddie Gobing, has petitioned the Court of Appeals to declare the rule unconstitutional. Having served on the PSE board for 28 years—and Gobing for 25—Yuchengco contends that term limits unfairly infringe upon fundamental shareholder rights. She maintains that as a founding member holding original shares, no regulatory body should deprive a shareholder of the right to sit on the board indefinitely.
Despite bringing the lawsuit against the regulator, Yuchengco emphasized that her legal action against Lim is purely a matter of principle and not a personal vendetta. She said that her challenge seeks to protect the rights of all shareholders across the market, leaving no middle ground unless the commission withdraws the restriction. The ongoing suit highlights the evolving tension between state-mandated governance reforms and traditional corporate ownership privileges within the Philippine capital market.
