The Court of Appeals has been asked to nullify the earlier decision of the Securities and Exchange revoking the certificate of incorporation of controversial online news network Rappler Inc. for allegedly violating the restriction on foreign ownership in mass media.
In a 70-page petition filed through lawyer Francisco Ed Lim, Rappler argued that contrary to the claim of SEC, Rappler, which was incorporated on July 25, 2011, is owned by Filipino citizens or corporations wholly owned and managed by Filipinos as well.
Petitioners Rappler Inc. and its holding company—Rappler Holdings Corp.—accused SEC of violating its constitutional right to due process and equal protections of the laws in issuing its resolution last Jan. 22, 2017 voiding the Philippine Depositary Receipts being held by Omidyar Network and revoking its certificate of incorporation.
Rappler noted that on Aug. 2, 2017 it received were served with the show cause order stating that a special panel but it was not clear whether it was conducting an investigation or an administrative proceeding. Rey E. Requejo
Subsequently it managed to secure a copy of SEC resolution and learned that the power of the special panel was limited to conducting “a formal, in-depth examination of Rappler and RHC.