Court orders arrest of SyCip son, 4 others

MANILA, Philippines — A Pasig City court has ordered the arrest of businessman George SyCip, son of the late tycoon Washington SyCip, and four other executives of tuna canning firm Alliance International Inc.

In a one-page warrant issued on July 11, the Pasig Metropolitan Trial Court (MTC) Branch 69 ordered the arrest of SyCip along with Alliance directors Jonathan Dee, Marie Grace Vera-Cruz, Antonio Pacis and Raymond See for alleged violation of the Corporation Code of the Philippines filed by the Department of Justice (DOJ).

Judge Emmanuel Pimentel found probable cause in the complaint for violation of Section 75 in relation to Section 144 of the Corporation Code against the respondents.

The complaint was filed by Alliance’s foreign shareholders Harvest All Investment Ltd., Victory Fund Ltd. and Bondeast Private Ltd.

It was the second arrest order issued against SyCip and Alliance executives this year. The first was issued by the Pasig MTC Branch 72 for a separate case of violation of the Corporation Code filed by other investors of the firm.

They were previously indicted for estafa by the DOJ.

In the present case, the complaint stemmed from the supposed denial of the respondents of the complainants’ right to inspect the corporate books and records.

Alliance had twice denied the request, telling the complainants that the company was waiting for instructions from the board.

Section 75 of the Corporation Code provides for the right of any stockholder or member to see financial statements of the company.

Section 144 penalizes violations with a fine of P1,000 to P10,000 or imprisonment ranging from 30 days to five years. 

Records showed that the shareholders made their first request for inspection of corporate books on Jan. 15, 2014 following the  financial downturn suffered by Alliance that adversely affected its share price in the market.

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