SEC Chairperson Lilia R. Bautista made this appeal after the corporate watchdog was requested to step in and investigate the alleged lack of transparency and accountability within the board of directors of Manila Polo Club.
Bautista said the SEC could not intervene in the squabble between management and members of the exclusive organization because it no longer has jurisdiction over intra-corporate disputes.
"At this time, if it’s intracorporate dispute, we have no jurisdiction. We hope that they will be able to sort out their problems," Bautista said.
The jurisdiction over intra-corporate disputes has been transferred to the regular trial courts to allow the SEC to concentrate on capital market reforms.
Members of the Manila Polo Club earlier asked the SEC to investigate the case to prevent the alleged dissipation of assets of the exclusive social club.
They have accused the current board of imprudent management of the club’s funds which resulted in the loss of P79 million over the last four years. They also claimed that the board co-mingled the funds of the club when it reclassified the P155 million in associate membership fees from restricted to unrestricted and used the same in the general operations of the club.
The group, which is eyeing control of the Manila Polo Club board, also alleged that the present management has exceeded its capital expenditure limit of P16 million annually as set in the club’s bylaws. Last year, at least P33 million of associate membership fees was spent on capital expenditures.
They said it was high time for the SEC to regulate the operation and management of social clubs following a string of internal wranglings among members over the control of membership funds and club assets.
The group, dubbed The Good Governance Team, is composed of former Foreign Secretary Roberto P. Romulo, former Bangko Sentral ng Pilipinas governor Jose Cuisia Jr., former Philippine Ambassador Jesus Tambunting, former Philippine Ambassador Isabel Caro Wilson, and former Capital Markets advisor Roman Azanza Jr.
At present, the club is managed by executives and businessman including president Policarpio Ascalon, Reynaldo Concepcion, Harry Tan, Farid Nassr, Cesar Bautista, and Carlos Rufino.