The Securities and Exchange Commission (SEC) has approved the request of cash-troubled firm Victorias Milling Company (VMC) exempting it from a provision of the Securities Regulation Code (SRC) and the Code of Corporate Governance (CCG) which requires for the election of an independent director.
VMC sought for the exemption from the provision of both Codes on the election of independent directors considering that it is under a rehabilitation program.
"In the light of the foregoing and considering that VMC is presently operating under the Alternative Rehabilitation Plan approved by this Honorable Commission, the company is requesting exemption from compliance with the provision of the CCG and the SRC on the election of independent directors pursuant to SRC Rule 72.1," the company told the SEC.
The SEC meantime said it will grant the exemption citing also SRC Rule 72.1 which grants it the authority to conditionally or unconditionally exempt any person, group, securities or transactions from any and all provision of the Code.
With the exemption given by the SEC, the Commission has directed VMC to pay an amount of
R5,000 as filing fee for the above exemption.
Under the Code of Corporate Governance and the Securities Regulation Code (SRC), listed companies such as VMC should elect independent directors to be part of its board of directors.
The SRC specifically states that "any corporation with a class equity securities listed for trading on an Exchange or with assets of
R50 million and having 200 or more holders, at least of 200 of which are holding at least 100 shares or which has sold a class of equity securities to the public pursuant to an effective registration statement in compliance with Section 12 hereof shall have at least two independent directors or such independent directors shall constitute at least 20 percent of the members of such board, whichever is lesser." 
