The Securities and Exchange Commission (SEC) is planning to issue new rules that will no longer allow the extension of terms of independent directors of publicly listed companies beyond the nine-year limit but will also give them security of tenure during those nine years so they can speak freely in board meetings.

“We are discussing the issuance of a memorandum circular…which will include matters like the term of independent directors, even their security of tenure, because you know that when they speak up, chances of not being re-elected [are] there. Fear is fear,” said SEC Chairman Francis Ed. Lim.

He explained that “this is to strengthen governance, because if you are an independent director and you are fighting for something which you believe is right but is not consistent [with] what the controlling shareholders are saying, you are putting your tenure at risk.”

However, Lim said this is still under study, on whether to give security of tenure to independent directors within their nine-year term limit.

He also noted that many firms seek exemptions or extensions for the terms of their independent directors after they reach the nine-year limit.

“I want to put a cap on this. There is no monopoly of talent. There are available [talents] in the market. If these independent directors really want to help, they can become independent directors of other companies, even smaller companies, who will benefit from their wisdom and experience,” noted Lim.