• PSE slaps 15 listed firms with penalties


    The Philippine Stock Exchange Inc. (PSE) has imposed penalties on 15 listed corporations for failure to submit their respective annual reports, saying such requirement is “critical” for sound business judgment among investors.

    Roel Refran, chief operations officer of the PSE, explained in a phone interview that any violation of the listing and disclosure rule has a corresponding penalty.

    The rule is known to all listed firms at the time they made an initial public offering.

    “As a result of our compliance monitoring, these listed firms have accordingly been slapped with penalties as a consequence of their failure to comply with the reportorial requirement,” Refran said.

    Of the 264 listed corporations, 5.6 percent or 15 have not submitted annual reports for the year ended December 31, 2015 on or before the extended deadline of April 29, 2016.
    These firms are 8990 Holdings Inc. (HOUSE), Acesite (Phils.) Hotel Corp. (ACE), Agrinurture Inc. (ANI), Alliance Select Foods International Inc. (FOOD), Century Peak Metals Holdings Corp. (CPM), Chemical Industries of the Philippines Inc. (CIP), Globalport 900 Inc. (PORT), Greenenergy Holdings Inc. (GREEN), and IP E-Game Ventures Inc. (EG).

    “The imposition of penalties is our way of encouraging them to comply with the disclosure requirement. Hopefully, we could attain 100 percent compliance by doing this,” Refran said.

    The other firms that failed to submit annual reports for the period are LMG Chemicals Corp. (LMG), Metro Global Holdings Corp. (MGH), PAL Holdings Inc. (PAL), Premiere Horizon Alliance Corp. (PHA), Uncoil Resources & Holdings Company Inc. (UNI), and Wellex Industries Inc. (WIN).

    The penalties vary depending on the frequency and gravity of the violation.
    Failing to submit an annual report is slapped with an amount based on the total asset of the company.

    For companies with assets of P25 million but less than P30 million, the basic fine is P5,000, plus P500 for each day of delay but not over P50, 000. Firms that have P1 billion worth assets are penalize with a P50,000 basic fine and 5,000 for each day of delay but exceeding P500,000.

    Repeating the violation could lead to the suspension of trading and may be a ground for delisting erring firms.

    The PSE official said there are underlying objectives in requiring listed companies to disclose material information like financial condition.

    “First, we would like to attain 100 percent disclosure compliance among all listed firms.

    Second, material information is critical not only for transparency but ultimately because this [annual report], among others, is considered as material information in order to help investors make sound business judgment, e.g., whether they would invest or not in certain listed companies,” he said.

    “Thus, if they [listed firms]do not comply, then the investing public would not have sufficient knowledge in making their investment choices,” Refran added.


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