Non-Compliant Listed Stocks Will Be Delisted

MANILA
The Bureau of Internal Revenue (BIR) raises the bar of listing requirements for companies listed in the Philippine Stock Exchange (PSE) on 17 January 2011. It imposes a final tax on the net capital gains from the sail of stocks for listed companies that failed to to meet the 20 percent public ownership requirement. According to BIR, a publicly listed company should have at least 10 percent, and up to 33 percent, public ownership.

Sale of up to P100,000 worth of stocks will be taxed 5 percent, and 10 percent on over P100,000 worth of stocks. 

The Securities and Exchange Commission (SEC) earlier implemented the 10 percent public ownership requirement on publicly listed companies. Those non-compliants must comply within a year to avoid penalties or even delisting.

Right now 40 companies listed in PSE have less than 10 percent in public ownership. These companies include government-owned PNOC-Exploration Corp. [PEC, PECB/Oil], Eton Properties Philippines Inc. [ETON/Property], Metro Pacific Tollways Corp. [TOL/Transportation Services], San Miguel Purefoods Co. Inc. [PF/Food, Beverage & Tobacco], Petron Corp. [PCOR/Oil], Atok-Big Wedge Co. [AB/Mining], Alphaland Corp. [ALPHA/Diversified Industrials], Polar Property Holdings Corp. [PO/Property], PLDT Communications and Energy Ventures Inc. [PCEV/Telecommunications], Makati Finance Corp. [MFIN/Small and Medium Enterprises], EasyCall Communications Philippines Inc. [ECP/Diversified Services], Republic Cement Corp. [RCM/CIA Services], Manchester International Holdings Inc. [MIH, MIHB/Holding-Chemicals], United Paragon Mining Corp. [UPM/Mining], Aboitiz Transport System Corp. [ATS, ATSP/Transportation Services], Euro-Med Laboratories Philippines Inc. [EURO/Chemicals] and Keppel Philippines Marine Inc. [KPM/Transportation Services].