SEC quashes MCM Royalty registration

The Securities and Exchange Commission (SEC) has revoked the corporate registration of MCM Royalty Legacy International Inc. after finding that the company illegally solicited investments from the public.

In a statement on Friday, the SEC said its Enforcement and Investor Protection Department issued an order on Feb. 2 canceling the company’s registration after determining that it offered securities without the required registration and license from the commission.

The violation breached Section 44 of Republic Act No. 11232, or the Revised Corporation Code, in relation to Section 6(i)(2) of Presidential Decree 902-A. The provision bars corporations from performing acts or exercising powers beyond what is allowed by law or stated in their Articles of Incorporation.

Also, the SEC ordered the company and its president, officers and directors to pay a P1 million fine. The officials were also barred from serving as directors of any corporation for five years from the issuance of the order.

According to the SEC, MCM Royalty was registered as a company engaged in wholesale trading of goods and merchandise, with a secondary purpose of conducting online advertising and e-commerce activities.

However, its articles of incorporation explicitly prohibited the company from soliciting, accepting or taking investment contracts from the public or issuing such instruments.