SEC witness: Share ownership is proof of business participation

House prosecution panel witness Gerardo del Rosario, director of the Securities and Exchange Commission (SEC) Company Registration and Monitoring Department, on Tuesday affirmed that the ownership of shares is evidence of participation in a business. In his interjection, Senator-Judge Raffy Tulfo questioned the witness if shares of stocks are considered securities and whether ownership of shares is evidence of participation. Del Rosario answered, "Tama po (That's correct)." He also affirmed that ownership of a share, regardless of the percentage, is evidence of participation. "Opo (Yes), it constitutes ownership po," Del Rosario said. Del Rosario said a government official such as the President and the Vice President cannot participate in any business under the 1987 Constitution. Section 13 states: "The President, Vice-President, the Members of the Cabinet, and their deputies or assistants shall not… during said tenure, directly or indirectly, practice any other profession, participate in any business, or be financially interested in any contract with, or in any franchise, or special privilege granted by the Government or any subdivision, agency, or instrumentality thereof, including government-owned or controlled corporations or their subsidiaries." The witness previously testified that Duterte remained on the Board of Directors of Metro City Chow Foods Corporation until 2025 or even after she was elected and assumed office as Vice President. Asked by private prosecutor Erwin Matib to explain what a board does, Del Rosario described its authority over the corporation's business and property, as well as its responsibilities to shareholders and government agencies. On the board's role in conducting the company's business, Del Rosario replied, "Hindi po siya makakapag-conduct ng business kung wala po siyang Board of Directors." (A firm cannot conduct business without a Board of Directors.) Del Rosario is testifying as a prosecution witness on Duterte's alleged corporate ownership and shareholdings in connection with Article 2 of the impeachment complaint against Duterte, which accuses her of accumulating unexplained wealth. — VDV, GMA News