Romualdez re-installed as Equitable PCI Bank director

FORMER Equitable PCI Bank Inc vice chairman Ferdinand Martin G. Romualdez has been reinstalled as a board director, signaling the return of his group to the country’s third largest bank. Romualdez’s comeback was in compliance with the recent order of the Supreme Court (SC) to recognize him as nominee of the Trans-Middle East Equities Inc. (TMEE) to replace Exequiel Villacorta. Villacorta, an ally of the Sy Group, was removed as director of the bank effective immediately. Tthe return of Romualdez to the Equitable board is expected to revive opposition to the potential merger of the bank with the Sy-owned Banco De Oro Universal Bank. On June 9, the SC reversed a Sandiganbayan ruling barring the Romualdez-owned TMEE from voting its 7.13 percent ownership in the bank during its May 23 annual stockholders meeting. The SC likewise declared as void the election to the bank's board of another nominee. "Clearly, TMEE is entitled to one seat on the board of directors of EPCIB. There is the option of annulling the entire election, but such step would be too drastic in light of the fact that only one of the 15 seats should be necessarily affected upon the seating of TMEE's nominee to the board of directors. The more prudent step on the part of the Court is to declare that one nominee or representative of TMEE is entitled to be seated immediately on the board," the SC decision stated. Penned by Associate Justice Dante Tinga, the decision was voted upon by 13 of the 15 members of the SC. During the bank's stockholders' meet last month, Romualdez and brother Benjamin Philip, were nominated as directors of the board but were not re-elected. The Romualdezes, through TMEE, own around 51.82 million shares in EPCI. A Sandiganbayan ruling, however, prevented them from voting their shares, which are deemed by the court as disputed. On May 17, TMEE filed for a temporary restraining order with the Court of Appeals to prevent the SM Group from sitting on EPCIB's board. In a 20-page petition, TMEE said the nominees of the SM group were not qualified as directors under the General Banking Act and the Securities Regulation Code. - GMANews.TV