SEC warns vs illegal sale of timeshares, propriety shares

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THE Securities and Exchange Commission (SEC) has warned the investing public against entities who illegally sell proprietary or non-proprietary shares or membership certificates or timeshares.

In an advisory posted on its website yesterday, the commission said it has received information about people or groups who have been acting as salesmen, brokers, dealers, or agents of proprietary or non-proprietary shares or membership certificates or timeshares without licenses issued by the SEC.

The commission defines a proprietary share as “an evidence of interest or participation of or privilege in a corporation which not only entitles the holder to enjoy the use of a specific property but also to dividends or earnings of a company.”

Meanwhile, a non-proprietary share is described as “an evidence of interest or privilege over a certain property of a corporation in view of the amount paid by the holder for the said share/certificate,” according to the SEC’s website.

The SEC warned the public that they should only engage in the sale of such shares with duly licensed salesmen and brokers. It also encouraged the public to report any unauthorized salesmen or brokers to report them to its Markets and Securities Regulation Department. — Arra B. Francia