Pasar’s minority owners to file charges versus management

Minority shareholders of the Philippine Associated Smelting and Refining Corp. (PASAR) are threatening to file a civil and criminal suit against the management of the country’s largest smelting firm for violation of the Corporation Code.

Through lawyer German Lichauco, minority shareholders, comprising less than a board seat at PASAR, complained about management’s continued refusal to open their books despite repeated demands.

"An unjustified refusal to allow a stockholder to exercise his right of inspection under Section 74 of the Corporation Code subjects those responsible for such denial to both civil and criminal liability," Lichauco said.

"Our options are to file a criminal and civil case in court for withholding documents. But we will try for one last time to get access to the corporate records and documents. If they refuse then we shall have no alternative but to resort to all the remedies allowed by law for the enforcement of our clients’ rights," Lichauco said.

The minority shareholders include Pablito Lim, Manuel Agcaoili, Consuelo Padilla, and Teodulfo Marquez.

Among the documents being sought by the minority shareholders include audited financial statements for 2002 or the latest financial statements, quarterly income tax returns for 2002 and for the first quarter of 2003, accounts receivable for trade and non-trade from October 2002 to the present, latest confidential and rank and file payroll, schedule of banking related charges such as but not limited to fees, documentary stamp taxes and interest, and schedule of lease rentals from Oct. 15 to the present.

Minority shareholders also complained about the alleged dissipation of PASAR’s assets.

PASAR runs the only copper smelter and refinery in the country. It can produce up to 175,500 tons of copper cathodes a year and exports 90 percent of its annual output.

The company is 68-percent owned by Swiss-based Glencore International AG, which gained control of PASAR through the purchase of the shares of former Agriculture Secretary Carlos Dominguez and businessman Jose Leviste in the smelting firm.