The Securities and Exchange Commission (SEC) on Wednesday affirmed its order revoking the certificates of incorporation of Rappler Inc. and Rappler Holdings Corp. for supposedly violating the foreign ownership restrictions on mass media companies.
In a statement, the SEC confirmed the issuance of an order dated June 28, 2022, affirming the revocation of the certificates of incorporation of the two companies.
The SEC order affirms the corporate regulator’s decision dated January 11, 2018, which found Rappler liable for violating the constitutional and statutory foreign equity restrictions in mass media when it issued questionable Philippine Depositary Receipts (PDRs) that granted Omidyar Network, a foreign entity, control over the media organization.
The securities regulatory agency said the PDRs included a provision requiring the Filipino stockholders of Rappler to seek the approval of Omidyar Network on fundamental corporate matters, a violation of the absolute constitutional and statutory prohibition on foreign control of mass media. The company has planned to appeal the revocation. (PR)