SEC urged to reconsider suspension order

A group of shareholders have asked the Securities and Exchange Commission and the Bureau of Internal Revenue to recall their orders that led to the suspension of trading of the shares of seven listed companies.

The PSE suspended the trading of shares of Alphaland Corp., Southeast Asia Cement Holdings, Inc., PAL Holdings Inc., Allied Banking Corp., San Miguel Brewery, Inc., PNOC Exploration Corp. and San Miguel Properties Inc. due to their failure to meet the 10 percent minimum public ownership requirement for continuing listing on the PSE. The BIR, for its part, ordered the removal of preferential tax rates on trades of shares of suspended—even if still listed—companies. These orders took effect on Jan. 2.

The Shareholders’ Association of the Philippines (SharePHIL), in a Dec. 28, 2012 letter, had asked the SEC to reconsider its blanket denial of applications for the extension of the grace period by noncompliant companies. The association, which represents minority investors, urged the SEC to hear out noncompliant firms with concrete programs to reach the required public float.

SharePHIL also asked the BIR to refrain from imposing the documentary stamp tax and the final tax of 5-10 percent on net capital gains derived from the trading of shares of listed but noncompliant companies, as contained in Revenue Regulation 16-12.

The petition signed by SharePHIL president Rosario Bernaldo and chair Evelyn Singson, expressed concern about the “adverse” effects of the said orders on the investing public and the market in general.

“We believe that it is in the best interest not only of the minority shareholders but also of the economy, in general, to increase the number of listed companies in the PSE and encourage the development of the capital market,” SharePHIL said.