PSE braces for special meeting over hot issues

The Philippine Stock Exchange (PSE) is bracing itself for a special membership meeting that would likely tackle two controversial issues at the same time: the relocation proposal of Fort Bonifacio Development Corp. (FBDC) and the dismissal of its president Ramon T. Garcia by the board of governors.

PSE governor Ismael Cruz of IGC Securities said the BOG will be calling a special membership meeting to ratify their decision on the issue involving FBDC.

The board of governors will meet tomorrow to discuss whether or not to accept the amended offer of the Metro Pacific-led consortium for the relocation of the PSE premises at the Bonifacio Global City by 2004.

Last week, the PSE’s building committee chaired by Cruz himself was put in a quandary as three of its six members resigned just before it was to meet over the FBDC proposal. Cruz said two of the members who resigned expressed their preference to stick to the original terms of the agreement made in 1999.

As this developed, Cruz said the agreement, if ratified, would be a binding one between FBDC and the PSE even as Metro Pacific last week indicated it would have to go as far as selling its controlling 67-percent stake in Bonifacio Land Corp. – the 55- percent stakeholder in FBDC – in a desperate bid to raise capital for debt repayment.

On the other hand, if the broker-members opt to reject FBDC’s amended proposal and stick to the original office, Cruz said "the PSE would have to pursue that alternative and take it to court if that happens."

Also in the agenda for the board meeting tomorrow is the possible replacement for Garcia, who was ousted as president by the board of governors last Sept. 26. Garcia, however, remains as a private sector representative in the board.

A search committee will be formed to look for potential candidates which Cruz said would likely be appointed before the end of this month.

PSE corporate secretary Edgardo Guevarra said he has not been informed nor notified of any moves from the member brokers calling for a special membership meeting to include a possible overturn in the board’s firing of Garcia.

But he said should the members secure the necessary number to call a special meeting, the issue on Garcia’s ouster would be jointly included in the agenda along with the FBDC proposal.