CA junks Rappler plea to reverse SEC ruling
MANILA — The Court of Appeals (CA) denied the petition of online news site Rappler to reverse the ruling of the Securities and Exchange Commission (SEC) to revoke its business registration.
In January, the SEC revoked the license of Rappler for allegedly violating the constitutional and statutory Foreign Qeuity Restriction in Mass Media.
In its 72-page ruling issued Thursday, the apellate court noted that the issuance of Philippine Depositary Receipts (PDR), a financial instrument allowing foreigners to invest in a Filipino company without owning any part of it, is not illegal.
The court acknowledged the earlier statement of Rappler that other Filipino corporations such as ABS-CBN, GMA and Globe have issued PDRs in the past and were allowed by the SEC.
The court indicated that one of the grounds for the rejection was: "That the purpose of the corporation are patently unconstitutional, illegal, immoral, or contrary to government rules and regulations."
Rappler has yet to issue a statement on the ruling as of this post.
The apellate court also found that the treasurer's affidavit on the amlount of capital stock subscribed and paid was false.
"That the percentage of ownership of the capital stock to be owned by citizens of the Philippines has not been complied with as required by existing laws of the Constitution," the ruling read.