The Securities and Exchange Commission (SEC) has suspended the Certificate of Registration and Permit to Sell Securities of Montemar Beach Club, Inc. due to the latter’s violation of the Securities Regulation Code (SRC).
The SEC, through its Corporation and Finance Department (CFD), issued the suspension order citing the company’s failure to submit reports required under Rules 17 and 20 of the SRC and pay the corresponding fine amounting to
P2.01 million.
According to the SEC, Montemar Beach Club failed to show cause in May this year why it failed to submit the required reports and why it should not pay the penalties imposed by the Commission.
Due to its failure to reply to the SEC’s show cause letter, the company was given an assessment letter dated June 28,2005 directing it to settle within 10 days its penalty of
P2.01 million.
The company, however, still failed to settle the penalty within the period prescribed leaving the SEC with no choice but to set a hearing within which it would tackle the possible suspension of the company’s permit to sell securities.
The SEC added Montemar Beach Club also failed to send their representative on the Hearing set by the Commission. Failure to appear at the Hearing is deemed a waiver on the company’s part to be heard with regard to the suspension of the registration of its securities.
Montemar’s Beach Club’s Certificate of Registration and Permit to Sell Securities is now suspended for 60 days or until such time that it is able to submit the required reports and pay its corresponding fine.
Failure to comply with said Order within the period of suspension shall constrain the Commission to proceed with the revocation of the registration of its securities without need for further notice and hearing in accordance with the provisions of SRC Rule 13.1.
Montemar Beach Club is located in Barrio Pasinay, Bagac, Bataan. In the early 1990s, the Club was being foreclosed by the Development Bank of the Philippines, but Philcomsat Holdings came to the company’s rescue by investing in the beach resort.
In exchange for its investment, Philcomsat and the La Colina group organized the Montemar Resort and Development Corp. Philcomsat would control 70 percent of the company while the remaining 30 percent would remain with the La Colina group.
