THE PHILIPPINE Stock Exchange is kicking out property developer Gotesco Land Inc. from its roster of listed companies effective March 18 following years of non-compliance to basic reportorial requirements alongside continuing capital deficiency.
In a memorandum dated Feb. 17, PSE president Hans Sicat said that following the PSE’s initiation in September last year of involuntary delisting procedure against Gotesco Land, it had recently decided to officially order such delisting as well as to impose penalties under its delisting rules.
Another ground cited by the PSE for the involuntary delisting of Gotesco Land – which is listed under the ticker GO – was the revocation by the Securities and Exchange Commission in 2009 of the property company’s registration of securities and certificate of permit to sell securities.
On the non-submission of structured reportorial requirements, the PSE noted that Gotesco Land had not submitted annual reports for the years 2010 to 2014 as well as quarterly reports for the years 2010 to 2015. Neither has the company bothered to file the required reports on the number of shareholders, public ownership and list of top 100 stockholders.
Under the PSE’s rules on delisting, having continuing capital deficiency or negative stockholders equity also constitutes grounds for delisting. Gotesco Land posted such capital deficiency for fiscal years ended 2007, 2008 and 2009, after which no more reports were filed.
Shares of Gotesco Land were last traded on the PSE on May 15, 2008.
When a company is delisted from the PSE against its will, it is prohibited from applying for relisting within a period of five years from the effective date of delisting, thereby losing its access to the capital market. Another big consequence falls on the directors and executive officers, as they are disqualified from being elected to such posts in any other company applying for listing within five years from the delisting of this company.
Gotesco Land is led by the Go family which likewise controls the Ever Gotesco retailing group and
the defunct Orient Commercial Banking Corp. Focused on leisure and resort development, the company has two projects, namely: The Evercrest Cebu Golf Club and Resort Inc. in Cebu City, and The Chateau Royale Sports & Country Club Inc in Nasugbu, Batangas. It has three subsidiaries, namely: Multi-Resources Holding Co. Inc., Nasugbu Resort Inc. and Gulod Resort Inc.