Meralco's annual stockholders meeting Tuesday was a classic lesson on how to win a corporate war.
With the Lopez family keeping their grip on Meralco's board by clinching more seats in the 11-man board than the government, they showed the importance of being the incumbent.
The Lopez family always had control of the company's board, except when President Ferdinand Marcos wrestled it away from them during the Martial Law years. Even when they only had less than 20 percent direct stake in the company, the Lopezes still controlled the board through proxies, which authorized them to populate the board with their nominees.
When that grip was threatened Tuesday, with Winston Garcia, president of another major stockholder, Government Service Insurance System (GSIS), stepping up his public pressure, financial muscle, and legal remedies to vote more government representatives on the board, the Lopez family did not buckle down. After all, it is easier to keep their control of the board now and face the legal battles afterwards, than relinquish it to a foe then reclaim it later on.
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