April 25, 2019
SEC MEMORANDUM CIRCULAR NO. 10-19
| TO | : | Publicly-Listed Companies |
| SUBJECT | : | Rules on Material Related Party Transactions for Publicly-Listed Companies |
To promote good corporate governance and the protection of minority investors, the Commission, pursuant to its regulatory power under Section 179 (d) of the Revised Corporation Code of the Philippines (Republic Act No. 11232) resolved to issue the Rules on Material Related Party Transactions for Publicly-Listed Companies attached to this Memorandum Circular.
Rules on Material Related Party Transactions
The Rules on Material Related Party Transactions recognizes that transactions between and among related parties may create financial, commercial and economic benefits to individual institutions and to the entire group where said institutions belong. In this regard, related party transactions (RPTs) are generally allowed provided, that when RPTs amount to ten percent (10%) or higher of a company's total assets, it shall be considered as material related party transactions subject to these Rules.
The Rules focuses and regulates only material RPTs or RPTs amounting to ten percent (10%) or higher of a company's total assets. Compliance to these Rules shall...
