Listed firms postpone annual stockholders’ meeting as pandemic stalls operations
MORE listed firms postponed their annual stockholders’ meetings (ASM) amid the coronavirus disease 2019 (COVID-19) pandemic which has temporarily shuttered business operations nationwide.
On Monday, more than 20 publicly listed companies told the Philippine Stock Exchange (PSE) that they have put on hold or rescheduled their respective ASMs because of the delay caused by the disease pandemic, which sickened thousands of Filipinos.
The following companies have reported their postponed ASMs before the Lenten break starting April 9: 2Go Group, Inc., Oriental Peninsula Resources Group, Inc., IPM Holdings, Inc., GT Capital Holdings, Inc., Millennium Global Holdings, Inc., SM Investments Corp., Seafront Resources Corp., Premium Leisure Corp., Nickel Asia Corp., Belle Corp., PXP Energy Corp., Lepanto Consolidated Mining Corp., SM Prime Holdings, Inc., Xurpas, Inc., Rockwell Land Corp., Cityland Development Corp., BDO Unibank, Inc., SFA Semicon Philippines Corp., Manila Mining Corp., MEDCO Holdings, Inc., Republic Glass Holdings Corp., and East West Banking Corp.
The firms cited delays in their completion of crucial reports to stockholders, especially their respective financial reports from the recent fiscal year and quarterly reports, which presentations fall from March until early June.
The Philippine capital where most businesses operate has been under enhanced community quarantine due to the disease pandemic since March 15. The quarantine period, initially expected to end by April 14, was extended until the end of this month.
Days before the Luzon-wide lockdown, the local bourse operator told investors in an online memo that they may remotely participate in ASMs as a precautionary measure to COVID-19.
“To mitigate the risk of contracting COVID-19, stockholders may prefer to participate in the ASM and vote through remote communication, instead of a face-to-face meeting,” the PSE said.
Republic Act No. 11232, or the Revised Corporation Code of the Philippines, allows companies to participate in ASMs either remotely, in absentia or through a proxy. The requirements and procedures for these options are up to the companies to establish.
Meanwhile, the Securities and Exchange Commission has released a memo outlining the guidelines for the conduct of meetings for stockholders remotely or via electronic communication. It also covers board meetings and other regular and special meetings for stockholders.
At least six of these firms have postponed their ASMs which were scheduled this month. — Adam J. Ang
