The recreational clubs are Bel-Air Golf & Country Club Inc., Buena Vista Park & Country Club Inc., Caliraya Spring Golf Club Inc., Canlubang Golf & Country Club Inc., Capitol Hills Golf & Country Club Inc., Victorias Golf & Country Club Inc., and Vista Mar Beach Resort & Country Club.
The move was in line with a recommendation by the SEC’s Corporation Finance Department (CFD) that the clubs’ certificates of permit to sell securities be revoked for their failure to submit financial statements.
The CFD likewise recommended that no certificate of good standing be issued to the seven companies unless the corresponding penalties imposed are settled.
Bel-Air failed to submit its annual report for 1999 and its second and third quarter reports for the same year. It likewise failed to submit an amended prospectus to disclose the new target date of completion of its project.
Buena Vista, on the other hand, failed to submit its annual report for 2002 and its first and second quarter reports for 2003.
Meanwhile, fined for late filing of annual reports were Caliraya, Canlubang, and Capitol.
Victorias was fined for non-submission of annual reports for 2000, 2001, and 2002 while Vista Mar failed to submit quarterly reports for the past four years.
The SEC has stepped up its monitoring of companies’ compliance with the agency’s reportorial requirements in line with efforts to weed out delinquent firms. It has revoked the registration licenses of about 240,000 corporations for non-submission of financial reports.
The SEC earlier formed a team to look into complaints filed against a number of exclusive recreational and sports clubs which have been charging prohibitive fees.
The team is composed of Justina Callangan, who heads the CFD; Jose P. Aquino of the Markets Regulation Department; Emil P. Aquino of the Non-Traditional Securities Department, and SEC general accountant Roberto Manabat.
The SEC has been receiving a lot of complaints from the public against several leisure clubs which have been charging monthly fees when there are even no facilities to offer yet.
Investors have complained about the failure of these leisure clubs to meet their timetable for completion of recreational facilities. As a come-on, membership clubs make promises to offer various amenities to the public like swimming pools, sauna, golf courses, basketball courts, gym, and other sports facilities.
Another problem cited is the charging of transfer fees by these clubs once a shareholder or member decides to sell his shares to another.
Recreational clubs are comprised of groups of individuals who share common recreational pursuit. In order to avail of the facilities of exclusive social clubs, one must apply for membership by subscribing to shares being offered by these clubs. These shares must be registered with the SEC before they are issued to the public.