DOJ indicts SyCip son, 6 others anew

MANILA, Philippines — The Department of Justice (DOJ) has again indicted businessman George SyCip, son of the late tycoon Washington SyCip, and six other executives of tuna canning firm Alliance International Inc. (Alliance).

The DOJ has filed another case for violation of the Corporation Code of the Philippines against SyCip and Alliance directors Jonathan Dee, Joanna Dee-Laurel, Teresita Ladanga, Alvin Dee, Arak Ratborihan and Grace Dogillo.

In a four-page resolution issued recently, the DOJ said prosecutors found probable cause in the complaint filed by Harvest All Investment Ltd., Bondeast Private Ltd., Victory Fund Ltd. and Hedy Yap-Chua, all investors of the company.

The DOJ said the respondents violated Sections 74 and 75 in relation to Section 144 of the Corporation Code.

The case stemmed from the alleged denial by the respondents of the complainants’ right to inspect the company’s books and records.

Section 74 of the Corporation Code provides that “the records of all business transactions of the corporation and the minutes of any meetings should be open to inspection by any director, trustee, stockholder or member of the corporation” and that refusal to allow these records to be examined will be liable for damages and is punishable under Section 144 of the code.

Section 144 states that violators of the code will be punished by a fine of P1,000 up to P10,000 or imprisonment of 30 days up to five years.

Section 75, meanwhile, underscores the right of any stockholder of his right to financial statements.

Records showed that the shareholders made the first request for inspection of corporate books on Jan. 15, 2014 following a financial downturn suffered by Alliance.

Chua repeated the request through a final demand letter to Alliance on Jan. 23, 2014, but was again denied.

Earlier, the DOJ indicted SyCip and the other respondents for estafa and violation of the Corporation Code.

The Pasig City Metropolitan Trial Court Branch 72 issued a warrant for the arrest of the respondents earlier this year.   

Alliance is embroiled in a management conflict as a result of the acquisition by Strong Oak Inc. of the firm’s 430.286 million shares worth P563.674 million. The sale has caused dilution of the stake of the company’s foreign shareholders.