THE Philippine Stock Exchange (PSE) announced on Tuesday a decision to initiate the involuntary delisting of Abra Mining and Industrial Corp. after violations were found by the Securities and Exchange Commission (SEC).
“The PSE is left with no alternative except to maintain the trading suspension on Abra Mining shares and proceed with the initiation of delisting proceedings pursuant to its involuntary delisting rules,” the market operator said in a statement.
The SEC earlier imposed fines on the directors, officers, transfer agent, and certain stockholders of Abra Mining after its shares were found conducting “unauthorized and fraudulent trading” of unissued and unlisted shares from 2015 to 2019.
“Based on SEC’s statement, the violations pertain to the illegal issuance of (Abra Mining) shares and issuance of shares for a consideration less than the stock’s par value,” the PSE added.
It said that the illegal issuance of shares totaled 169.05 billion shares covering 474 stock certificates during the five-year period.
In an April 8 decision, the regulator found the company guilty of violating Section 26 of Republic Act No. 8799 or the Securities Regulation Code (SRC), and Section 61 of Republic Act No. 11232 or the Revised Corporation Code (RCC). Violators were fined at least P560 million.
“Section 26 of the SRC makes it unlawful for any person to employ any device or scheme to defraud or to engage in any act or transaction which operates as a fraud or deceit upon any person,” it said.
The SEC has authority to adjudicate complaints under FPSCPA for damages not exceeding P10 million.
“Minority stockholders of (Abra Mining) may, individually or as a group, consult their counsel and seek legal advice on available remedies under existing laws, including Republic Act No. 11765 or the Financial Products and Services Consumer Protection Act (FPSCPA),” it said.
The SEC also revoked Abra Mining’s registration statement and certificate of permit to sell.
In March 2021, the local bourse halted the company’s trading after it was found selling stocks beyond the number of its listed shares. — Adrian H. Halili
