CA bars SEC from revoking registration of Subic Bay Golf and Country Club

The Court of Appeals has issued a writ of preliminary injunction preventing the Securities and Exchange Commission (SEC) from implementing a resolution that revoked the registration statement of Subic Bay Golf and Country Club (SBGC).

SBGC owns and operates an 18-hole championship golf course within the Subic Bay FreePort Zone.

SBGC was given 10 days from receipt of order to post a P370,000 bond which shall answer for any damage that they may suffer as a consequence of the issuance of the writ.

The SEC revoked SBGC’s registration statement following an investigation that showed that the company failed to comply with its undertakings in its registration statement and prospectus, tantamount to misrepresentation and in violation of the provisions of the Securities Regulation Code (SRC).

The investigation was in response to a complaint filed by two SBGC investors, alleging that the golf club failed to deliver on their promises as the facilities are either incomplete or are poorly maintained.

The SEC said SBGC’s failure to perform its undertaking should have been disclosed as soon as it was apparent that the facilities as planned could not be completed on time to advise future investors.

Rule 17 of the SRC requires companies to make accurate disclosure of material fact or event that occurs which would reasonably be expected to affect investors’ decisions.