MPCC bucks stockholders' plea for receiver

The Mindanao Portland Cement Corp. (MPCC) is opposing the move of its stockholders to have the Securities and Exchange Commission (SEC) appoint a management or receiver committee to take over the operations of the cement company.

Through legal counsels ACCRA Law Offices, MPCC asked the SEC to deny the stocholders' petition, saying there is no basis for the SEC to create a receive and that the requirements for the appointment of a receiver do not exist.

For one, there is no property or fund which is the subject of the action and which is in danger of being lost. Rather, the case is limited to the validity of the increase of capital stock.

Also, the stockholders' assertion of mismanagement "have no factual basis and are mere speculations, surmises and wrong conclusions."

MPCC maintained it was management's prerogative to temporarily suspend its cement manufacturing operations in Iligan City, in view of the poor economic and market conditions. It however, continues to run its business by buying cement from other suppliers at prices lower than their own manufacturing costs and supplies them to its customers.

Moreover, Zeus Holdings Inc., contrary to stockholders' claims, is a valid stockholder of the company. MPCC said that Zeus already invested P1.198 billion, making it a majority stockholder, representing 99.63 percent of MPCC's outstanding capital stock.

MPCC shareholders led by Vicente Ponce said a receiver group is needed to prevent the company from issuing shares of stock taken from the unauthorized increase in its capital stock from P20 million to P2 billion.

Ponce said the receiver group will temporarily replace the board members who will have to step down pending the holding of a new stockholders meeting.

Earlier, the SEC stopped MPCC from registering any subscription agreement forming part of the increase in the capital stock. MPCC was told to maintain the status quo of the entries in the present stock and transfer book of MPCC until such time as the case is decided with finality.