SEC cancels incorporation of DNKC retail group
Securities and Exchange Commission (SEC) Headquarters in Makati. | PHOTO: Daniella Agacer / INQUIRER.net
MANILA, Philippines – The Securities and Exchange Commission (SEC) has canceled the papers of another company for supposedly soliciting investments without the proper license.
In a May 13 order, the SEC Enforcement and Investor Protection Department revoked the certificate of incorporation of DNKC Corp. for offering securities to the public and promising high returns.
DNKC, whose businesses include restaurants, coffee shops, refreshment parlors and beauty and wellness, was allegedly asking investments ranging from P50,000 to P2 million. Investors were promised monthly payouts, depending on how much they initially invested.
The SEC pointed out these were considered investment contracts under the Securities Regulation Code (SRC).
The SRC defines these agreements as a transaction “whereby a person invests his money in a common enterprise and is led to expect profits primarily from the efforts of others.”
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Violations cited
According to the SEC, DNKC also violated Republic Act No. 11232, or the Revised Corporation Code of the Philippines, since the law mandates that companies cannot exercise corporate powers beyond what is stipulated in their articles of incorporation.
In DNKC’s case, it is “expressly prohibited to operate an investment-taking scheme,” the SEC pointed out.
The agency first issued an advisory to warn the public against investing in DNKC in December 2023.
A show cause order was later issued on Feb. 13, 2025 addressed to its incorporators, Jonathan David Manluctao Cacdac, Kweenee Cheng Gregorio Cacdac and Jaymar Montalbo Zalamera.
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DNKC’s side
In its Verified Explanation filed on March 1, DNKC denied having solicited investments from the public and operating an investment-taking scheme.
It likewise argued that the investment contracts referred to in the SEC order were “loan agreements.” DNKC said its officers, in their personal capacities, got financial assistance from close associates through these agreements.
However, the SEC pointed out that DNKC’s contracts had explicitly indicated that “the second party agrees to be an investor in the business of the first party,”referring to DNKC. The regulator said this “clearly contradicts their explanations.”
DNKC was ordered to pay a P1-million fine for offering securities to the public without the proper registration, and another P1 million as administrative sanction.
