GMA Network, Inc. has officially thrown in the towel on its legal challenge against a Securities and Exchange Commission (SEC) order, with a Makati court granting the listed firm’s request to withdraw its petition.
Citing an order dated 2 June, GMA said Thursday that the Regional Trial Court of Makati City, Branch 138, “granted the Company’s withdrawal or desistance from pursuing the Certiorari Petition.”
The case, docketed as R-MKT-26-00885-SC, pitted GMA Network against the SEC over Memorandum Circular No. 7, Series of 2026, which it had sought to strike down.
The SEC circular caps the tenure of independent directors of listed firms at nine cumulative years from 2012 and requires a two-year cooling-off period before former officers or non-independent directors can reclaim independent status.
Directors who have already hit the limit may continue serving only as non-independent board members.
“A strict term limit ensures that independent directors maintain the objectivity and impartiality required to serve the very purpose envisioned under the law,” SEC Chairperson Francis Lim said earlier.
Companies that fail to comply face penalties starting at P1 million for every non-compliant director, along with monthly fines and possible regulatory sanctions for repeat violations.
GMA filed the petition in March to nullify the circular through a certiorari action, asking the court to issue injunctive relief to halt its implementation. Instead, the case will now conclude without a ruling on the merits after GMA moved to withdraw the petition.
Court records show the motion to withdraw was authorized by GMA’s Board of Directors during a special meeting on 21 May before being filed on 26 May. The court subsequently granted the request.
Despite the legal retreat, GMA said the development will not affect its business, stating that the incident has “no impact on the financial condition and business operations of the Company.”