THE Philippine Stock Exchange (PSE) has initiated delisting procedures for Marsteel Consolidated Inc., a shell company that was last traded eight years ago.
The PSE said in a notice to stockholders that Marsteel, a previously sequestered company by the Presidential Commission on Good Government (PCGG), failed to file its annual reports from 2006 to 2014 and also quarterly reports since 2007. “The exchange suspended the trading of the shares of the company on May 21, 2007, due to nonsubmission of its annual report for the year ended December 31, 2006,” the PSE said.
The Securities and Exchange Commission (SEC) suspended the company on July 15, 2008, for trading after the company failed to submit the reports.
The SEC also issued in 2009 an order that revoked the company’s registration with the agency for its violations. “Under the Exchange’s Delisting Rules, the nonsubmission of reportorial requirements to the Exchange and the revocation of the registration of the securities of the company, are included among the grounds for the involuntary delisting of a listed company, and, when applicable, the imposition of the relisting prohibition,” the PSE said.
The PSE said Marsteel will still undergo hearing procedures, giving the company some 15 days to file its written request for the said hearing.
“Should the company decide not to or fail to request for a hearing within the specified period, the Exchange shall decide the case solely on the basis of the records on hand,” the PSE said.
Marsteel, founded in 1976, is primarily engaged in investment-holding activities. At present, its investment portfolio is composed of holdings in companies involved in commercial operation, development and preoperating stages.
PCGG sequestered all its assets, properties, records and documents. The company is directed to desist from doing any act, directly or indirectly, which may lead to dissipation, concealment and transfer of the sequestered assets, properties, records and documents, and to disburse funds only to support the routine or day-to-day operations.
On October 24, 1991, however, the Sandiganbayan issued a resolution lifting the writs of sequestration issued against the company.