The ongoing corporate dispute within the Lopez family may draw in both the Philippine Stock Exchange (PSE) and the Securities and Exchange Commission (SEC), as the majority shareholders of the Lopez holding company demand an investigation into alleged delayed disclosures by First Gen Corp.
The shareholders have requested the PSE and SEC to look into whether First Gen, a listed firm, failed to promptly disclose what they describe as "poison pill" provisions in two contracts signed with Prime Infrastructure Corp. in November 2025 and February 2026. The disclosures were reportedly made only after six months and two months, respectively, which the complainants say violates PSE rules.
Under PSE guidelines, material information must be disclosed immediately or within minutes via email or other rapid communication channels to ensure equal access for all investors. The rules are designed to prevent insider trading and allow reasonable investors to make informed decisions.
The PSE, as a self-regulatory organization, will have the first opportunity to address the complaint. The SEC would only step in if the PSE fails to act or acts contrary to law.
Among the events requiring prompt disclosure are decisions on extraordinary investments or financial transactions that could materially impact the issuer's financial condition. The disputed provisions appear to fall under this category.
Failure to comply with disclosure rules can result in substantial fines for the offending party. The case highlights the growing scrutiny on corporate transparency in the Philippines and the importance of timely reporting to protect shareholder interests.