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Infinity8Networks faces revocation, fine for Illegal solicitation activities

The Securities and Exchange Commission (SEC) has revoked the corporate registration of Infinity8Networks Digital Services OPC and imposed an administrative fine of P1 million for illicitly soliciting investments from the public.

In an order issued on December 18, 2023, the SEC’s Enforcement and Investor Protection Department (EIPD)said that Infinity8Networks had violated Section 44 of the Revised Corporation Code of the Philippines as well as the Securities Regulation Code (SRC).

Although registered as a one-person corporation with the SEC, Infinity8Networks failed to secure prior registration and/or a license from the Commission for conducting a public offering. Furthermore, its AOI explicitly prohibits engaging in investment-taking activities.

According to the RCC, corporations are prohibited from exercising corporate powers beyond those granted by law or specified in their articles of incorporation.

The SRC mandates that securities must be registered with the SEC before being offered to the public, and entities engaged in such offerings must obtain the necessary license from the Commission.

The SEC is empowered to suspend or revoke the certificate of registration of a corporation for serious misrepresentation regarding the corporation’s actions, causing significant harm or damage to the general public.

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