|
By Likha C. Cuevas-Miel, Assistant Business
Editor
A broker questioned the legality of some of the appointments at the
Philippine Stock Exchange (PSE) management and board of directors,
alleging that there was a violation of the Securities Regulation
Code.
Sources told The Manila Times that the
appointment of William Ang of Astra Securities as the bourse’s
corporate secretary was illegal. This issue has allegedly divided
the board.
One source said that after Ang failed to win a
board seat, his supporters had him appointed as the exchange’s
corporate secretary to allow him to remain within the so-called
inner circle or on the management team.
Another source from the market who asked not to
be identified said he wrote the board and asked that the exchange
secure a clearance from Securities and Exchange Commission for
Ang’s appointment, since “it cannot be allowed” under the law.
According to the Chapter 9, Sec. 33.2 (h) of the
Securities Regulation Code, brokers are not allowed to become
president or a member of management. But the law states that the
exchange can appoint a broker “if such person has not been a
member or affiliated with any broker, dealer or member of the
Exchange for a period of at least two years to such appointment.”
Last year, Ang was a member of the board,
occupying an open seat in his capacity as a broker.
Petition for exemption
In telephone interview, Ang told The Times the
stock exchange management submitted last week its application for
“exemptive relief” from the regulator regarding this issue. He
added that the board also asked for the same relief for Alejandro
Yu, a director broker who has been the bourse’s treasurer for two
to three years.
“For four to five years, no one questioned Ali
Yu’s appointment,” Ang said. “But [this issue surfaced]
probably because I am more controversial than him.”
He added that this was not the first time that
the stock exchange had asked SEC for “exemptive relief” for
“conflicted” appointments. The bourse’s management, for
instance, was able to secure an exemption for former Justice Jose
Vitug’s appointment as an independent director and chairman of the
bourse when he was also the legal consultant of the Manila Electric
Co. (Meralco). Ang added that Vitug’s appointment was more
“conflicted” than his.
According to the SEC’s Market Regulation
Department, the stock exchange paid P20,000 for the application at
the SEC, which has yet to rule on it.
Another questioned
Besides Ang, the unnamed broker also questioned
the “legal basis” of Eduardo David’s position in the board.
The broker claimed that David, chairman and managing partner of
Hupomone Capital Partners (Singapore) Pte. Ltd., “is a non-broker
occupying a broker position.” He cited that there should be seven
brokers in the board, not six.
On May 9, 2009, exchange’s shareholders
elected nine members non-brokers and six brokers to the board. Under
the Nomination and Election Committee, non-broker directors should
not comprise less than 51 percent or at least seven of the total
number of seats, including the president, three independent
directors and at least one person who will each represent the
interests of issuers, investors, and other market participants.
The Times tried calling the stock exchange
president for comment, but calls and text messages were not
answered.
|
