Xpn the monetary board may increase or decrease the

XPN: The Monetary Board may increase or decrease
the above percentages, in order to achieve the
objectives of the Government with due regard for

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promotion of the economy and prevention of the use
of excessive credit.
Purposes of the margin requirements
They are primarily intended to achieve a
macroeconomic purpose – the protection of the
overall economy from excessive speculation in
securities. Their recognized secondary purpose is to
protect small investors.
Burden of compliance with margin requirements
The brokers and dealers have the burden of
compliance with margin requirements.
Note: In securities trading, the brokers are essentially the
counterparties to the stock transactions at the Exchange.
Since the principals of the broker are generally undisclosed,
the broker is personally liable for the contracts thus made.
Brokers have a right to be reimbursed for sums advanced
by them with the express or implied authorization of the
principal (Abacus Securities Corporation v. Ampil, G.R. No.
160016, Feb. 27, 2006).
RULES ON PROXY SOLICITATION
Requisite for valid proxy solicitation
1. It must be in writing
2. It must be signed by the stockholder or his duly
authorized representative
3. It must be filed before the scheduled meeting with
the corporate secretary (Sec. 20, SRC).
NOTE: For public companies, the period to submit proxy
solicitation should not be later than five (5) days before the
meeting unless the by-laws provides for a longer period.
Unless otherwise provided in the proxy, the proxy shall be
valid only for the meeting for which it is intended. No proxy
shall be valid and effective for a period longer than 5 years
at one time.
Rules on proxy solicitation with regard to broker or
dealer
1. No broker or dealer shall give any proxy, consent or
authorization, in respect of any security carried for
the account of a customer, to a person other than the
customer, without the express written authorization
of such customer.
2. A broker or dealer who holds or acquires the proxy
for at least 10% or such percentage as the
Commission may prescribe of the outstanding share
of the issuer, shall submit a report identifying the
beneficial owner within 10 days after such
acquisition, for its own account or customer, to the
issuer of the security, to the Exchange where the
security is traded and to the Commission. (Sec. 20,
SRC)
DISCLOSURE RULE
Beginning of disclosure requirement
It begins at registration and continues periodically
through the regular filing of periodic report.
Suspension of disclosure
It may be suspended for any fiscal year after the year
such registration became effective if such issuer as of
the first day of any such fiscal year, has less than 100
shareholders of such class of securities and it notifies
the Commission of such (Rule 17.1, SRC IRR).