THE Philippine Stock Exchange (PSE) has imposed sanctions on First Gen Corp. for violating several provisions of its Consolidated Listing and Disclosure Rules, a notice released on Friday stated.
First Gen was cited for violations of Sections 1, 2, 4.1, 4.2, 4.3, 4.4 (u), 4.4 (ll), and 16 of Article VII of the rules.
The provisions require listed companies to ensure the full, fair and timely disclosure of material corporate information, promptly disclose material developments and board or shareholder resolutions, report significant transactions and securities issuances, and update or correct previous disclosures when they become inaccurate or misleading.
The sanctions were published pursuant to Article VIII, Section 5 of the PSE's Consolidated Listing and Disclosure Rules, which requires the exchange to disclose penalties imposed on listed companies for violations of its rules.
The PSE did not disclose the amount of the penalties or specify the particular disclosures or transactions that gave rise to the violations.
First Gen had earlier faced scrutiny over the timing of its disclosures on change-of-management-control provisions, or so-called "poison pill" clauses, in its investment agreements with Prime Infrastructure Capital Inc.
The issue surfaced amid a dispute within the Lopez family over the control of the company.
The Lopez family's majority bloc had asked the PSE and the Securities and Exchange Commission (SEC) to investigate what it alleged were delayed disclosures of the provisions, while First Gen maintained that the clauses were standard contractual protections requested by its investment partner and that it had complied with applicable disclosure requirements.
Meanwhile, the exchange also sanctioned DoubleDragon Corp. for violating Sections 1 and 16 of Article VII of the same rules. The PSE likewise did not provide details on the specific violations or the penalties imposed.
First Gen and DoubleDragon representatives were not immediately available for comment.
First Gen shares on Friday rose P0.38, or 2.36 percent, to close at P16.50 each, while DoubleDragon shares jumped P0.24, or 2.19 percent, to close at P11.18 apiece.