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GASOLINE COMPANIES
The public is advised to exercise caution in dealing with these GASOLINE COMPANIES

Date Posted: 24 August 2021

GASOLINE COMPANIES

GASOLINE COMPANIES

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The Commission
has
received reports that
there has been a proliferation of offering
and solicitation of investments for the purpose of setting up gasoline stations or investing in
already existing small
GASOLINE COMPANIES
in the guise of a
franchise agreement
,
co

franchisee agreement
,
partnership
agreement
,
co

ownership contract
and/or
other forms
of contract
that
offers
to
the public an opportunity to invest in their company and earn profit

hassle free
.

The usual scheme of these
small
GASOLINE COMPANIES
is to lure investors by
advertising that they can co

own a gas station for a minimal amount of at least
Three Hundred
Thousand Pesos (PhP 300,000.00)
. These
GASOLINE COMPANIES
usually offers the following:
1.
Subscription to the shares of stock of the compa
ny;
2.
Partnership Agreement, where a gas station will be co

owned by
several partners;
and
3.
Co

Franchisee Contract wherein a single gas station will be
franchised and owned by several co

franchisees.
In the said offers, the construction, management and ope
ration of the gas stations will
be the responsibility of the company. The investors just have to place their money, sign the
contract, then wait for the quarterly distribution of profits. Some would even offer a
guaranteed profit by claiming that the loss
will be shouldered by the company.
The Commission reminds the public that these kinds of contract
s or investment
schemes
, no matter how they are called
,
would squarely fall under the definition of an
“investment contract
” and/or
subscription of
“shares
of stocks
.

Therefore, in the ey
es of
the law they are
considered as
securit
ies
under the regulatory jurisdiction of the Commission.
The public solicitation of securities is mandated by
Republic Act No. 8799
or the
Securities
Regulation Code
to be registe
red with the Commission. Thus, any issuance of
unregistered
securities
is
illegal.
We wish to inform the public
that
the SEC
website,
thru the link
https://www.sec.gov.ph/registered

firms

individuals

and

statistics/registered

firms

and

individuals/
contains the exclusive list of
registered issuers of securities with corresponding
Permit to Offer and Sell Securities
.
Investment
s
not included in the list are deemed to be
unregistered and therefore not authorized to be offered to the public.
On the other hand,
the
Capital
Market
Participants
Registry
System
(CMPRS)
thru
the
link
http://cm
prs.sec.gov.ph/
lists down the capital market institutions and indiv
iduals authorized
to solicit investments such as broker dealers in securities and salesmen.
The Commission warns that
those who act as salesmen, brokers, dealers or agents of
these
GASOLINE COMPANIES
in selling or convincing people to invest in the scheme being
offered by said entities including solicitations and recruitment may be prosecuted and be held
liable under
Section 28 of the Securities Regulation Code (SRC
and
can be penalize
d with a
maximum fine of
Five Million Pesos (PhP 5,000,000.00)
or penalty of
Twenty

One years of
imprisonment
or both pursuant to Section 73 of the SRC.
Also, those who invite or recruit others to join or invest in such venture or offer
investment contra
cts or securities to the public may incur criminal liability, or otherwise be
sanctioned or penalized accordingly as held by the Supreme Court in the case of
Securities
and Exchange Commission vs. Oudine Santos
(G.R No. 195542, 19 March 2014).
The Public
is hereby advised to exercise caution
in dealing with these
GASOLINE COMPANIES
or persons purporting to be their
representatives.
Should you have any information regarding any investment solicitation by any
individuals or group of individuals on behalf o
f these
GASOLINE COMPANIES
, please
send
your report to the
ENFORCEMENT AND INVESTOR PROTECTION DEPARTMENT(EIPD)
at
epd@sec.gov.ph
.
For the guidance of the public.
Pasay
City,
24
August
2021