The Securities and Exchange Commission said it will review the timing of the implementation of the planned increase in the minimum public ownership requirement of listing firms to 25 percent amid the massive sell-off in the equities markets following the COVID-19 fears.
SEC chairman Emilio Aquino said in an interview over the weekend the corporate regulator would rethink the timetable set to start this year.
“The market is now below 7,000 level. So we will have to rethink about the timetable,” Aquio said.
Aquino stressed the SEC still wanted to eventually increase the minimum public float requirement in a bid to boost liquidity in the stock market.
“We definitely still want that to be implemented. It is only a timing issue,” Aquino said.
The SEC earlier revived plans to increase the public float requirement to 25 percent starting this year. The SEC, instead, gave listed companies five years to comply with the proposed rule.
The minimum public float is currently pegged at 10 percent.
The bellwether Philippine Stock Exchange Index on Friday closed at 6,787.91, its lowest in more than three years, amid heavy foreign selling due to the COVID-19 outbreak.
Meanwhile, the SEC issued new rules requiring corporations to send written notices of regular meetings to all stockholders at least 21 calendar days prior to the date of the meeting.
The notices will give stockholders ample time to prepare and effectively participate in the regular meetings.
The written notices of regular meetings must contain all information and deadlines relevant to the shareholders’ or members’ participation in the meeting and exercise of the right to vote remotely, in absentia or through a proxy.
In case of postponement of stockholders’ regular meetings, a written notice and the reason for the postponement should also be sent to all stockholders at least two weeks prior to the date of the meeting as originally scheduled.
“The longer notice period will allow stockholders or members to prepare for, participate more effectively in their regular meetings and cast votes in matters concerning the corporation such as the election of directors,” Aquino said.
“This is in line with the mandate of the Commission to promote good corporate governance, protect minority investors, and make the Philippine corporate sector more competitive globally,” he added.