JG Summit seeks reconsideration of SEC penalty

JG Summit Holdings Inc. is seeking reconsideration of the P52,700 penalty imposed on it by the Securities and Exchange Commission for alleged late filing of reportorial requirements.

In its letter-appeal to the SEC, JG Summit assistant corporate secretary Rosalinda Rivera said the fine should be waived as its imposition is entirely misplaced and has no basis under existing rules and regulations.

Rivera said records would show that JG Summit had in fact filed its definitive information statement with the SEC last July 18 or six days earlier than the due date.

The SEC, however, argued that the definitive information statement filed by JG Summit on July 18 was not in compliance with the requirements of the corporate watchdog in its letter dated May 31, 2002.

These include submission of the required information on the nominees for directors and for the company to indicate in its audit report the name of the certifying partner and the partner’s license.

"Granting that the audit report attached to the definitive information statement did not contain these details regarding the auditor, such an ommission should not operate to nullify the entire definitive information statement," Rivera said.

Rivera said the SEC should have imposed the additional requirements when it provided its comments to the preliminary information statement.

She said while it cannot be denied that the SEC has the authority to require additional information for updating purposes, it is unfair for the Commission to penalize JG Summit for its failure to anticipate that the agency will be imposing additional requirements in the filing of the definitive information statement.

Rivera argued that the SEC circular provides that the scale of fines is imposed upon late filing of reports. "It is thus clear that the penalty is imposed upon publicly-listed companies which fail to file such reports. The circular does not state that the penalty is also imposed upon incomplete reports which is supposedly the case with respect to the definitive information statement," Rivera said. – Zinna dela Peña