The Securities and Exchange Commission (SEC) has revoked the certificate of incorporation of Silverlion Livestock Trading Corp. for having allegedly defrauded investors by operating an investment-taking scheme.
“Considering that nowhere is it stated in the primary purpose Silverlion Livestock Trading Corp. that it is authorized to engage in the selling or offering for sale of securities to the public, compounded by the fact that it does not have the required secondary license from the Commission to offer or sell securities to the public, its activity of selling or offering to the public securities or investment contracts is considered an ultra vires act,” the SEC said in its revocation order.
Such activities constitute serious misrepresentation as to what it can do to the great prejudice or damage to the general public, which is a ground for the revocation of a corporation’s primary franchise or certificate of registration/ incorporation under Presidential Decre 902-A, the SEC said.
The corporate watcdog issued a cease and desist order last November against Silverlion after it was found selling and offering unregistered securities in the form of investment contracts to the public without license from the commission.
While the entity is a corporation duly organized and existing under the country’s laws, its primary purpose as stated in its articles of incorporation is on the wholesale and retail of frozen products, meats and dried fish.
A show cause order was issued against Silverlion on Nov. 26 directing the company to show cause why its certificate of incorporation should not be revoked.
