MORNBFI Vol. 1 - Planters Development Bank

§ 4145Q09.12.31disadvantages that could result fromindiscriminate concurrent directorship.(1) Except as may be authorized by theMonetary Board or as otherwise providedhereunder, there shall be no concurrentdirectorships between QBs or between aQB and a bank; and(2) Without the need for prior approvalof the Monetary Board, concurrentdirectorships between entities not involvingan IH shall be allowed in the followingcases:(a) A QB and a bank without quasibankingfunctions; and(b) A bank and one (1) or more of itssubsidiary bank/s, QB/s, and NBFI/s; and(c) A QB and an NBFI.For purposes of the foregoing, ahusband and his wife shall be consideredas one (1) person.b. Interlocking directorships andofficershipsIn order to prevent any conflict ofinterest resulting from the exercise ofdirectorship coupled with the reinforcinginfluence of an officer’s decision-makingand implementing powers, the followingrules shall be observed.(1) Except as may be authorized bythe Monetary Board or as otherwiseprovided hereunder, there shall be noconcurrent directorship and officershipbetween QBs, or between a QB and abank, and between a QB and an NBFI.(2) Without the need for prior approvalof the Monetary Board, concurrentdirectorship and officership shall be allowedin the following cases:(a) Between a QB and one (1) or moreof its subsidiary QB/s and NBFI/s;(b) Between a QB, other than aninvestment house and one (1) or more of itssubsidiary banks, QBs and NBFI/s otherthan investment house/s; and(c) Between a bank and one (1) or moreof its subsidiary bank/s, QB/s, and NBFIs,other than investment house/s.c. Interlocking officershipsA concurrent officership in different FIsmay present more serious problems ofself-dealing and conflict of interest. Multiplepositions may result in poor governance orunfair competitive advantage. Consideringthe full-time nature of officer positions, thedifficulties of serving two (2) offices at thesame time, and the need for effective andefficient management, the following rulesshall be observed:As a general rule, there shall be noconcurrent officerships, includingsecondments, between QBs or between aQB and a bank or between a QB and anNBFI. For this purpose, secondment shallrefer to the transfer/detachment of a personfrom his regular organization for temporaryassignment elsewhere where the secondedemployee remains the employee of thehome employer although his salaries andother remuneration may be borne by the hostorganization.However, subject to prior approval ofthe Monetary Board, concurrentofficerships, including secondments, may beallowed in the following cases:(1) Between a QB, other than an IH,and not more than two (2) of its subsidiarybank/s, QB/s,and NBFI/s other than IH/s; or(2) Between two (2) QBs, or between aQB, other than an IH, and a bank, orbetween a QB and an NBFI: Provided, Thatat least twenty percent (20%) of the equityof each of the banks, QBs or NBFIs isowned by a holding company or a QB/bankand the interlocking arrangement isnecessary for the holding company or theQB/bank to provide technical expertise ormanagerial assistance to its subsidiaries/affiliates.(3) Between a QB and not more thantwo (2) of its subsidiary QB/s, andNBFI/s; or(4) Between a bank and not more thanManual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart I - Page 41