Rappler may continue ops pending appeal: SEC

MANILA - The Securities and Exchange Commission (SEC) said Tuesday, January 16, that news website Rappler may still continue with its operations pending the filing of appeal before the court.

"The commission en banc decision has not become final and executory. The respondent, Rappler (Holdings) Corporation, can still go to Court of Appeals within 15 days to challenge the decision of the SEC. Meantime, it can go on business as usual," SEC spokesperson Armand Pan said in a television interview.

In a resolution dated January 11, the SEC revoked Rappler’s license to operate saying that the company violated the constitutionally mandated foreign equity restriction in mass media.

The commission said it has been found that Rappler has turned over control to the Omidyar

Network Fund, which is owned by eBay founder Pierre Omidyar.

It said Rappler sold to the foreign company Philippine Depository Receipts (PDRs), a financial instrument that provides Omidyar the right to the delivery of dividends from Rappler shares.

Pan said they have found that Rappler "must have prior approval (from Omidyar) when it comes to changing the articles of incorporation or bylaws of the company."

"That means that Rappler cannot even change the principal office address, the date of meetings--those are operational policies of the corporation, which means the PDR holders exercise right of ownership," he said.

"The mere giving of right to participate in these management acts is enough. They need not be exercised. It's there in the PDR itself," he added. SunStar Philippines