Rule on Equitable board’s legitimacy, Go asks court

BY Ma. ELOISA I. CALDERON, BusinessWorld Reporter Banker Antonio L. Go and his allies have asked the Supreme Court to end a more than half-year row over leadership in Equitable PCI Bank Inc., the country’s third largest lender. On Aug. 4 last year, the high court issued a temporary restraining order stopping the Go-led board from gaining control over the bank after its rival group, led by former Equitable PCI vice-chairman Ferdinand Martin Romualdez, questioned the legitimacy of the board elections during the bank’s annual stockholders’ meeting in July of the same year. Mr. Romualdez was named board chairman by the faction that walked out from the original stock meet at the bank’s head office along Paseo de Roxas Avenue and trooped to nearby Mandarin Oriental Hotel to elect their own board. In a 32-page petition, the Gos argued that it is high time that the tribunal rules on the conflicting claims on the legitimacy of the board elections noting that both boards have been executing acts of management for the past seven months. "At stake are the acts and contracts executed and implemented by either set of Board of Directors and/or the officers that they have appointed into office that depend on this ruling for their validity," the Go-led board said. The group argued that the sale of its entire 25% stake in Equitable PCI could not accord the rival board validity as the Gos still have the required shares to qualify as directors of the bank. Neither does the resignation of four of the members of the Go family as directors of the bank serve to legitimize the Romualdez board, the group said. "The important issues in this case should be resolved on the basis of law, not upon the Go family’s decision to sell their shares in, and resign from the board of, EPCIB. These are indeed important issues, answers to which every EPCIB stockholder, even those owning a single share, are entitled," the Go group said. Mr. Go, who was chairman of the board, Peter Go Pailan, John C.B. Go and Genevieve W.J. Go resigned from the board shortly after the sale of the family’s shares to the Sy-controlled Banco de Oro Universal Bank. They were replaced by Teresita P. Sy, Exequiel P. Villacorta, Jr., Vicente L. Panlilio and Harley T. Sy. The group asked the court to order the conduct of a stockholders’ meeting under the guidance of the Securities and Exchange Commission if it deems that the Go-led board no longer constitutes a quorum.