THE majority of the board of Lopez Inc. has withdrawn its Feb. 27 resolution removing Federico “Piki” Lopez as president and CEO, in a move that opens the door for possible family-level discussions amid an ongoing legal dispute.
In a statement, the 71-percent Lopez majority faction said the withdrawal allows the family to step back from adversarial positions and explore options that would be less damaging to both the group and the investing public.
“The withdrawal presents an opportunity for the whole family to step back, re-consider their adversarial positions, and look for options that are least injurious to the family, the Lopez group, and the investing public,” they said.
They added that while a “ceasefire” and a reasonable compromise are possible, a failure of talks can result in intensified legal action.
“Harm has been done to everybody. Reputational damage is there. Our family has been in a fishbowl with everybody looking in,” they said.
The dispute remains pending before the Court of Appeals, where a petition for the lifting of an injunction is being heard.
The Lopez majority earlier removed Piki in a 5-2 board vote, citing provisions in the company’s by-laws that allow the removal of officers with or without cause.
They said Piki lost their trust and confidence after he allegedly entered into P125-billion worth of transactions through First Gen Corp. without authority from the majority board.
The group also alleged that the agreements contained “poison pill” provisions that could impose penalties of up to P24 billion on the Lopez group and First Gen shareholders, along with cross-default loan clauses triggered by his removal.
