Pursuant to Monetary Board Resolution No. 23 dated 3 January 2003 authorizing the lowering of the requirement on physical attendance of directors of banks, quasi-banks and trust entities in board meetings, the Manual of Regulations for Banks and Non-Bank Financial Institutions are hereby amended, as follows:

SECTION 1. The last paragraph of Subsections X141.1 and 4141Q.1 of the Manual of Regulations for Banks and the Manual of Regulations for Non-Bank Financial Institutions are hereby amended to read as follows:

"The meetings of the board of directors may be conducted through modern technologies such as, but not limited to, teleconferencing and video-conferencing as long as the director who is taking part in said meetings can actively participate in the deliberations on matters taken up therein: Provided, That every member of the board shall participate in at least fifty percent (50%) and shall physically attend at least twenty-five percent (25%) of all board meetings every year."

SECTION 2. Subsections X143.1.b.2 and 4143Q.1.b.2 are hereby amended to read as follows:

"Directors who have been absent or who have not participated for whatever reasons in more than fifty per cent (50%) of all meetings, both regular and special, of the board of directors during their incumbency, or any twelve (12) month period during said incumbency and directors who failed to physically attend for whatever reasons in at least twenty-five per cent (25%) of all board meetings in any year. This disqualification applies for purposes of the succeeding election."

This Circular shall take effect immediately. 

Adopted: 18 Feb. 2003 

(SGD.) RAFAEL B. BUENAVENTURA
Governor