The Securities and Exchange Commission (SEC) has officially revoked the certificate of incorporation of Seek Explore Sports Association, Inc. for the unauthorized offering and sale of securities to the public.
In an order issued by the Enforcement and Investor Protection Department (EIPD), the Commission cancelled Seek Explore’s corporate registration and imposed an administrative fine of P1 million for serious violations of the Revised Corporation Code (RCC) and the Securities Regulation Code (SRC).
The EIPD found that Seek Explore exceeded its corporate mandate and engaged in activities requiring specific secondary licenses it did not possess. The revocation is based on the following legal breaches:
-
Ultra Vires Acts (Section 44, RCC): The company exercised powers beyond those authorized in its Articles of Incorporation.
-
Unregistered Securities (Section 8.1, SRC): Seek Explore sold or offered securities to the public without a registration statement approved by the SEC.
-
Unlicensed Solicitation (Section 28.1, SRC): The entity acted as a broker or dealer without being registered with the Commission.
-
Fraudulent Transactions (Section 26, SRC): The company was found to be engaged in unlawful practices related to the purchase or sale of securities.
According to its SEC-filed Articles of Incorporation, Seek Explore was registered as an association intended to:
-
Improve community health, education, and productivity.
-
Facilitate and receive financial or in-kind contributions for development.
-
Promote livelihood and outreach programs.
However, the SEC investigation revealed that the entity shifted from its community-oriented mission to an unauthorized investment scheme, soliciting funds from the public under the guise of securities.
The SEC continues to remind the public to exercise caution when investing. Under Philippine law, any entity offering securities—such as investment contracts or shares of stock—must have a Secondary License specifically authorizing them to do so.
“The revocation of Seek Explore’s registration serves as a stern warning to entities that misuse their corporate personality to conduct unauthorized investment activities,” the Commission stated.
For more information or to report suspicious investment activities, the public may contact the SEC Enforcement and Investor Protection Department.
