The Securities and Exchange Commission, SEC has approved the suspension of Rule 42 (5)(e) of the Consolidated Rules and Regulations of the Commission for 90 days, effective February 25, 2015.
The announcement of the suspension was released yesterday at the commission’s website.
The suspended rule provides: “Membership of an Audit Committee shall be for a term of three (3) years, subject to good performance; Provided, that such Member shall not be eligible for re-election until the expiration of three (3) years after his previous term”.
The commission explained that the suspension is to allow it sufficient time to enhance the provisions of the said rule and align it with best practice.
