Solon seeks more women in boards of listed firms

More women should be elected to the boards of local companies, House Deputy Majority Leader and Makati City Rep. Mar-Len Abigail Binay appealed to shareholders of Philippine Stock Exchange (PSE)-listed corporations to elect more women to their governing boards.

Binay made the plea after a survey conducted by her congressional office revealed that despite the 2009 Magna Carta of Women’s strong affirmative action policy, women hold less than 15 percent of the more than 2,200 seats for board members or directors of exchange- listed firms.

“After examining the gender composition of the boards of 244 publicly traded corporations, we discovered that out of the 2,262 seats available, women occupied only 325, or just 14.3 percent,” Binay said. “We also found out that 73 listed firms, or three out of every 10, do not have a woman in their boards at all,” she said.

Besides appealing to shareholders, Binay urged the Securities and Exchange Commission (SEC) as well as the PSE to find new ways to allow a greater number of women into the governing boards of firms in the bourse.

For starters, Binay has filed House Resolution 1977, which calls on the SEC to obligate every exchange-listed firm to reserve for a woman at least one board seat meant for independent directors.

At present, under Section 38 of the Securities Regulation Code, PSE-listed corporations must have at least two independent directors, or give at least 20 percent of their board seats to independent directors, whichever is lesser.

Binay’s resolution simply urges the SEC to draw up a new memorandum circular that would compel publicly traded firms to set aside for a highly qualified woman at least one of the seats intended for independent directors.

Under the law, an “independent director” is a non-executive director who is not directly associated with a major investor in the corporation, and who is not affiliated with the firm in any other capacity.

Binay noted that PSE-listed corporations are reputed to be the champions of highly progressive corporate governance standards, policies and practices.

“They are in an excellent position to enable more women to serve on their boards, and set a positive example for the rest of the private corporate world,” Binay said.

“We are also convinced that the involvement of more women will encourage the infusion of fresh ideas in the governing boards of listed entities,” she added.

In pushing for the election of more women as board members, Binay invoked not only the Magna Carta of Women, but also the mandates of the 1987 Constitution with respect to the promotion of gender equality.

She cited in particular the State’s policy “recognizing the role of women in nation-building, and to ensure the fundamental equality before the law of women and men.”

She also mentioned the State’s duty “to provide women new opportunities that will enhance their welfare and enable them to realize their full potential in service of the nation.”

The Magna Carta of Women, or Republic Act 9710, mandates the State “to promote empowerment of women and pursue equal opportunities for women and men and ensure equal access to resources and to development results and outcome.”

The law also recognizes that “equality of men and women entails the abolition of the unequal structures and practices that perpetuate discrimination and inequality.”

Thus, the law requires the State to “endeavor to develop plans, policies, programs, measures, and mechanisms to address discrimination and inequality in the economic, political, social, and cultural life of women and men.”