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ABS-CBN's Philippine Depositary Receipts different from Rappler’s, legal counsel says

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<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img src="http://sa.kapamilya.com/absnews/abscbnnews/media/2020/tvpatrol/06/06/20200605-abs-cbn-supporters-md-6.jpg"/><figcaption>ABS-CBN employees and press freedom advocates light candles in front of the ABS-CBN Broadcasting Center in Quezon City on June 5, 2020, a month after the network&#x27;s free tv channels and radio stations went off the air due to the expiration of its franchise. Mark Demayo, ABS-CBN News</figcaption></figure></div>MANILA (UPDATE) - ABS-CBN Holdings&#x27; Philippine Depositary Receipts or PDRs are different from those of news website Rappler&#x27;s, a legal counsel of the network said on Monday during a joint House committee hearing on ABS-CBN&#x27;s broadcast franchise. Congresswoman Claudine Bautista of DUMPER-PTDA Party-list said the PDRs of Rappler and ABS-CBN Holdings had &quot;almost the same stipulations that were held as showing control.&quot; “Based on the Court of Appeals ruling in Rappler Holdings Inc. vs. SEC, almost the same stipulations similar to these were held as showing control,” Bautista said. But ABS-CBN legal counsel Herminio Ozaeta said there were differences between the PDRs of the two companies.“The main distinction is that any change in the Rappler PDR required consultation with the PDR holders, and the original version required approval before such changes can be made. In the ABS-CBN model, there was no requirement. From the very beginning, there was an understanding that when the PDR issuer issued, they made a promise that they would not change the document,&quot; Ozaeta said. <ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/news/01/29/18/rappler-challenges-sec-decision-to-revoke-license">Rappler challenges SEC decision to revoke license</a></li>	<li><a href="https://news.abs-cbn.com/business/02/12/20/what-are-pdrs-ex-stock-exchange-chief-says-its-like-betting-on-a-horse">What are PDRs? Ex-stock exchange chief says it&#x27;s like betting on a horse</a></li></ul>ABS-CBN Corp and ABS-CBN Holdings are separate companies. PDRs are securities that allow their holders to receive dividends from a company. But unlike shares of stock, PDRs do not give their holders ownership or control of a company.Bautista also asked ABS-CBN officials whether stipulations in the PDR restrict ABS-CBN Holdings and ABS-CBN decisions and show control.But ABS-CBN Corporate Secretary Enrique Quiason said that the restrictions do not transfer ownership or control to the PDR holders. Some congressmen have accused ABS-CBN of violating Constitutional restrictions on foreign ownership in mass media, saying PDRs which can be owned by non-Filipinos amount to foreign ownership and some control of the company. But the Securities and Exchange Commission itself has said that ABS-CBN PDRs are <a href="https://news.abs-cbn.com/business/02/24/20/abs-cbn-pdrs-compliant-with-law-as-sec-says-ownership-rules-evolving">allowed</a> under the law.<ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/06/08/20/gabby-lopez-inevitably-qualified-to-own-manage-abs-cbn-lawmaker">Gabby Lopez &#x27;inevitably qualified&#x27; to own, manage ABS-CBN: lawmaker</a></li></ul>Lawmakers opposing the network’s franchise renewal also insisted that ABS-CBN Chairman Emeritus Gabby Lopez was not a Filipino because of his dual citizenship. But the Securities and Exchange Commission and the Department of Justice share the opinion that dual citizens are 100-percent Filipino.&quot;Our interpretation of the dual citizenship law has been similar to that of the Department of Justice...a dual citizen is 100 percent Filipino, &#x27;yan po ang yung current interpretation namin,” SEC Commissioner Ephyro Luis Amatong told the House Committees.Justice Assistant Secretary Nicholas Ty, meanwhile, opined that Congress has the authority to pass a law restricting ownership of mass media from dual citizens.“For the franchise, if we say na mass media, we will not allow dual citizenship, and other broadcast media?” Rep. Mike Defensor asked.“Top of my head, I would think that is within Congress’ power to provide qualifications or restrictions on ownership of franchises,” Ty responded.<ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/06/08/20/sec-agrees-dual-citizens-are-100-percent-filipino">SEC agrees, dual citizens are &#x27;100 percent Filipino&#x27;</a></li></ul><div><a href="http://News. abs-cbn.com">News. abs-cbn.com</a> is the official news website of ABS-CBN Corp.</div>

MANILA (UPDATE) - ABS-CBN Holdings' Philippine Depositary Receipts or PDRs are different from those of news website Rappler's, a legal counsel of the network said on Monday during a joint House committee hearing on ABS-CBN's broadcast franchise.

MANILA (UPDATE) - ABS-CBN Holdings' Philippine Depositary Receipts or PDRs are different from those of news website Rappler's, a legal counsel of the network said on Monday during a joint House committee hearing on ABS-CBN's broadcast franchise.