Practice question
A board argues that meeting Section22's numerical independent-director floor automatically exempts its nominees from SEC rules on qualifications, disqualifications, and term limits. Which response is correct?
- The numerical floor repeals all SEC authority.
- Only management may prescribe every eligibility rule.
- The SEC can regulate only share prices.
- Section22 expressly subjects independent directors to SEC-prescribed requirements; headcount compliance does not remove those requirements.
- Independent directors have no legal responsibilities.
Legal references
- RA11232, Revised Corporation Code, Sections22,24,26,34 and52: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/86463
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