One of the questions asked by a participant was, what happens to our shares when a

company were buying becomes delisted from the PSEi?

And then this morning, I read another similar question asked by a forum member to
COL Financial advisor, Mike Vias who was worried as to what will happen to her
shares in a company that has been delisted by the PSE. She was not aware that the
delisting happened until now.
What Happens To the Investors Shares of a Delisted Company?
Normally, the stockbroker will advise its clients ahead of time that a particular noncompliant company is to be delisted either voluntarily or involuntarily from the PSEi. A
shareholder will have to visit the stock transfer office of the company where shares of
that are delisted. They are the ones that will direct you on how to go reclaiming your
investment. Check with your stockbroker when this happens. (Thanks Bro. Mike Vinas
for this information.)
An investor technically still owns the shares of a delisted/suspended company. One can
choose to hold the position for a long while or until the delisted company complies with
the Philippine Stock Exchanges requirements.
The 10 percent minimum public ownership (MPO) rules of the PSE provide that a
publicly-listed company whose shares are now under trading suspension for noncompliance with the MPO requirement as of December 31, 2012 have until June 30,
2013 to comply with the 10 percent requirement. The company will be automatically
delisted from the PSE if it does not comply by that date.
A company may also buy back shares from the public as part of a reorganization or in
order to issue them to their employees in accordance to some employee stock award
plan.
If worse comes to worst, e.g. the delisted company decides to close down, the investor
may still be able to get a proportionate share when they liquidate their assets. You may
consult with the SEC through the Investor Protection and Surveillance department or
through the PSE to clarify the procedures in case the company you are invested in are
closing down.

But if an investor wants to sell the shares now, he/she may try to consult with the
stockbroker to help in finding an off-the-market buyer of the stocks as these can not be
traded in the market anymore.
An important note: Once you are warned by your stockbroker about a company being
suspended for failing to comply with the PSEs MPO requirement, it is advisable that
you sell your shares immediately.
This will be subject to applicable taxes such as capital gains, documentary stamp (DST),
and donors taxes.

Revenue Regulations 16-2012 Tax Treatment of Sales, Barters, Exchanges or Other Dispositions of Shares of
Stock of Publicly-listed Companies Whose Public Ownership Levels Fall Below the Mandatory Minimum Public
Ownership (MPO) Level, Monitoring of these Companies and their Stock Transactions, and Amending Revenue
Regulations No. 06-08 for the Purpose

How Do We Know If A Company is Experiencing Financial Troubles?

Minority shareholders in publicly-listed companies may now know whether their chosen
companies are experiencing financial troubles through the proposed Rules on
Companies Under Financial Distress by the Philippine Stock Exchange (PSE).
It requires that all companies under financial distress shall disclose their condition at
the PSE. With this proposal, shareholders can have enough time to sell their position in
these companies before they close down.
Companies that are asked to disclose their financial troubles are those that:

Disposed its major business

Suspended their operation for at least six months for any reason

Negative stockholders equity for three consecutive years

Experience any delay in the payment around 10% of their loans
Received adverse opinions on their financial statements for three consecutive years
You may view the rest of the slides below for the complete details on how this proposal
will protect the minority shareholders in case the companies they are invested in are
experiencing financial troubles.
Philippine Stock Exchange Proposed Rules for Companies under Financial Distress