Dear All,
Last April 20, 2018, the Securities and Exchange Commission (SEC) released Memorandum Circular No.
7 Series of 2018 pertaining to amendment to 2015 Implementing Rules and Regulation (IRR) of
Securities Regulation Code (SRC). The SEC, in its En Banc meeting, dated March 22, 2018 resolved to
amend Rule 38.2.7 of the 2015 IRR of SRC.
| 2015 IRR of SRC | Amendment |
|---|---|
| SRC Rule 38.2.7. Has not engaged and does not engage in any transaction with the covered company and/or with any of its related companies and/or with any of its substantial shareholders, whether by himself and/or with other persons and/or through a firm of which he is a partner and/or a company of which he is a director or substantial other than transactions which are conducted at arms length are immaterial. | SRC Rule 38.2.7. Has not engaged within the last two (2) years and does not engage in any transaction with the covered company and/or with any of its related companies and/or with any of its substantial shareholders, whether by himself and/or with other persons and/or through a firm of which he is a partner and/or a company of which he is a director or substantial other than transactions which are conducted at arms length are immaterial. |
The Rule 38 of the SRC pertains to Requirements on Nomination and Election of Independent Directors.
Please see attached SEC Memorandum Circular No. 7 Series of 2018 for your reading.