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But if an investor wants to sell the shares now, he/she may try to consult with the
stockbroker to help in finding an off-the-market buyer of the stocks as these can not be
traded in the market anymore.
An important note: Once you are warned by your stockbroker about a company being
suspended for failing to comply with the PSEs MPO requirement, it is advisable that
you sell your shares immediately.
This will be subject to applicable taxes such as capital gains, documentary stamp (DST),
and donors taxes.
Revenue Regulations 16-2012 Tax Treatment of Sales, Barters, Exchanges or Other Dispositions of Shares of
Stock of Publicly-listed Companies Whose Public Ownership Levels Fall Below the Mandatory Minimum Public
Ownership (MPO) Level, Monitoring of these Companies and their Stock Transactions, and Amending Revenue
Regulations No. 06-08 for the Purpose
Minority shareholders in publicly-listed companies may now know whether their chosen
companies are experiencing financial troubles through the proposed Rules on
Companies Under Financial Distress by the Philippine Stock Exchange (PSE).
It requires that all companies under financial distress shall disclose their condition at
the PSE. With this proposal, shareholders can have enough time to sell their position in
these companies before they close down.
Companies that are asked to disclose their financial troubles are those that:
Suspended their operation for at least six months for any reason