The Court of Appeals (CA) has sided with the Securities and Exchange Commission (SEC) for its decision to revoke the controversial media company, Rappler Holdings Corporation's registration to operate in the Philippines.
Last January 2018, the SEC revoked Rappler's articles of incorporation after they found that it was being controlled by a foreign funder, deeming it unconstitutional.
Philippine Law states that media companies must be wholly-owned and controlled by Filipinos, but the SEC found problems in Rappler's agreement with foreign funder Omidyar Network, owned by Pierre Omidyar, also the founder of eBay.
The decision of Court of Appeals was due to the fact tht the Securities and Exchange Commission (SEC) decided to revoke the incorporation papers of news website Rappler after it issued Philippine Depository Receipts (PDRs) from a foreign entity.
In a 25-page resolution dated February 21, the Former Special Twelfth Division said the issuance of PDRs to Omidyar Network gave the company powers “to participate in the corporate actions and decisions of Rappler."
The CA also said the PDRs give the SEC authority to investigate the matter.
Here's Part of the CA Decision:
"In view of the donation made by Omidyar of all the Omidyar PDR to the Rappler staff, the negative foreign control found objectionable by the SEC appears to have been permanently removed. This Court notes that the terms and conditions of the donation made by Omidyar was not discussed by petitioners in their Reply. Also, petitioners did not attach a copy of the document containing the alleged donation in their reply."
"Thus, it is incumbent upon the SEC to evaluate the terms and conditions of said alleged supervening donation and its legal effect, particularly, whether the same has the effect of mitigating. If not curing, the violation it found petitioners to have committed. If so, this may warrant a re-examination of the sanction of revocation of petitioners' Certificate of Incorporation imposed by the SEC en Banc in the assailed Decisions."
Last January 2018, the SEC revoked Rappler's articles of incorporation after they found that it was being controlled by a foreign funder, deeming it unconstitutional.
Philippine Law states that media companies must be wholly-owned and controlled by Filipinos, but the SEC found problems in Rappler's agreement with foreign funder Omidyar Network, owned by Pierre Omidyar, also the founder of eBay.
The decision of Court of Appeals was due to the fact tht the Securities and Exchange Commission (SEC) decided to revoke the incorporation papers of news website Rappler after it issued Philippine Depository Receipts (PDRs) from a foreign entity.
In a 25-page resolution dated February 21, the Former Special Twelfth Division said the issuance of PDRs to Omidyar Network gave the company powers “to participate in the corporate actions and decisions of Rappler."
The CA also said the PDRs give the SEC authority to investigate the matter.
Here's Part of the CA Decision:
"In view of the donation made by Omidyar of all the Omidyar PDR to the Rappler staff, the negative foreign control found objectionable by the SEC appears to have been permanently removed. This Court notes that the terms and conditions of the donation made by Omidyar was not discussed by petitioners in their Reply. Also, petitioners did not attach a copy of the document containing the alleged donation in their reply."
"Thus, it is incumbent upon the SEC to evaluate the terms and conditions of said alleged supervening donation and its legal effect, particularly, whether the same has the effect of mitigating. If not curing, the violation it found petitioners to have committed. If so, this may warrant a re-examination of the sanction of revocation of petitioners' Certificate of Incorporation imposed by the SEC en Banc in the assailed Decisions."
Read the Decision of CA Revoking Rappler's Registration:
Source: Facebook / GMA News / PNA
CA Sided with SEC For Deciding to Revoke Rappler's Registration to Operate in the Philippines
Reviewed by Phil Newsome
on
March 11, 2019
Rating:
Reviewed by Phil Newsome
on
March 11, 2019
Rating:
