Minimum Participation and Physical Attendance Requirements
- Every director is required to participate in at least 50% of all board meetings annually.
- At least 25% of all board meetings must be attended physically by each director.
- These requirements ensure directors are substantially involved either physically or remotely.
Disqualification Criteria Based on Attendance
- Directors who fail to participate in more than 50% of all board meetings (regular and special) during their incumbency or within any 12-month period are subject to disqualification.
- Directors who do not physically attend at least 25% of all board meetings in any given year are also disqualified.
- Such disqualification applies to the succeeding election of directors.
Immediate Effectivity
- The amendments effected by this Circular take effect immediately upon its adoption on February 18, 2003.
Legal and Regulatory Context
- Amendments apply to the Manual of Regulations for Banks and the Manual of Regulations for Non-Bank Financial Institutions.
- These regulatory adjustments are intended to balance regulatory oversight with modern technological facilitation of board governance.