If you wish to buy or sell stocks, you may contact any licensed stockbroker operating in the Philippine Stock Exchange. All stockbrokers charge a standard fee for every buy or sell transaction, with an additional 1/2 of 1% stock transaction tax (based on the market value of the stock) paid whenever you sell your stocks.
Transfer Shares
Direct Transfers
To transfer shares directly to another person, fill out the assignment form behind the stock certificate:
- Write the name and address of the new owner.
- Sign the certificate in the space provided, making sure that your signature is the same as that on the specimen signature card.
File the Stock Transaction Capital Gains Tax Return at the Bureau of Internal Revenue. Send the following to Securities Transfer Services, Inc. (STSI):
- Stock certificate.
- The machine-validated Income Tax Return (BIR Form #1701E2-F) showing the payment of the stock transaction capital gains tax (tax levied on profits derived from the sale of shares of stocks). Capital Gains Tax is ½ of 1% of the prevailing market price.
Direct transfer transactions are normally coursed through stockbrokers registered in the Philippine Stock Exchange. Sale of share of stocks done through the Stock Exchange has a final tax of ½ of 1% based on the gross selling price.
Transfer of Shares Involving Minors
Transfer of shares owned by minors (below 21 years old) should be supported by an order from a court (as certified by the clerk or judge of the court issuing it) authorizing the transfer. A parent or guardian cannot validly dispose of the property of a minor under guardianship without court approval. This requirement also applies to shares registered under "In Trust For" (ITF) accounts with minors as beneficiaries.
Transfer of Shares of Corporate/Institutional Stockholders
A corporation must submit the following to STSI:
- A copy of the Board Resolution approving its sale of investment in shares of stock and naming the persons authorized to effect the sale. The resolution should be certified as a true copy by the Corporate or Assistant Corporate Secretary.
- A copy of the document appointing new signatories and their specimen signatures.
Transfer of Shares of Deceased Stockholders
This may either be done judicially (through court proceedings) or extra-judicially (out-of-court settlement). In the first case, once the proceedings have been closed, the heir/heirs must give STSI a certified true copy of the Court’s Order of Partition or the Project of Partition (a proposed manner dividing the estate of a deceased person among the heirs) as approved by the Court.
In the Extra-Judicial Settlement, the heir or heirs must submit:
- Copy of the Death Certificate
- Certified Copy of the Deed of Extra-Judicial Settlement
- Affidavit of Publication executed by the publisher of the newspaper of general circulation who published the notice of the execution of the extra-judicial partition has been published.
- Certification from the Bureau of Internal Revenue attesting to the payment of, or exemption from, payment of the estate tax. Estate tax is the tax imposed on the right to transfer property by death levied on the decedent’s estate, and not on the heirs receiving the property.
- Copy of a two-year heir’s bond submitted to the Register of Deeds if the heirs need immediate release of the new certificates. Otherwise, the certificates will be in the custody of the Company for two years.
In either of these cases all dividend cheques and stock certificates in the name of the deceased must be given to STSI for cancellation after which new certificates and checks will be issued in the names of the heirs.
Name and Address Change
Registered stockholders should send a signed letter informing Securities Transfer Services, Inc. (STSI) of any change in their mailing address. This will enable STSI to promptly deliver all correspondences, stock and cash dividends, and all other communication to the stockholders.
To update the registration of stockholder’s name in the stock and transfer book of the corporation, please submit:
- Legal document/s showing the basis for changing name of the stockholder (i.e. marriage contract, court order)
- Fully endorsed stock certificate and cancellation for STSI to re-issue the shares under the new name of the stockholder
Note: All transfer transactions/replacements of certificates require these payments:
- Transfer fee of PhP100.00 per certificate plus 10% VAT
- Cancellation fee of PhP20.00 per certificate plus 10% VAT
Lost Stock Certificates
Safeguarding Stock Certificates
Your stock certificate is proof of your ownership of the company, and should be protected and kept in a safe place. It is valuable and negotiable; do not sign your certificate until you sell or transfer your shares.
Loss or Theft
If a stock certificate is lost, stolen or destroyed, write Securities Transfer Services, Inc. (STSI), immediately so that a “stop transfer” instruction can be entered in our records to protect your ownership of the shares.
To replace a lost stock certificate submit:
- Affidavit of Loss - stating how it was lost, the stock certificate number and number of shares
- Affidavit of Publication - proving that a Notice of Loss was published once a week for three (3) consecutive weeks in a newspaper of general circulation
The company cancels the lost certificate and issues a replacement certificate, one (1) year after the date of the last publication. A transfer fee of PhP100 per certificate plus 10% VAT will be charged.
To get the new certificate before the one-year lapse, file a surety bond effective for a period of one year; the amount of which is equivalent to 100% of the prevailing market price.
Dividends
Cash Dividends
Payments
COMMON
Our Board of Directors has been declaring cash dividends twice a year since Meralco shares were publicly listed. The first is usually declared in mid-February while the second is sometime in mid-August for payable dates scheduled for end of March and September, respectively. However, the Board of Directors may forego cash dividend declarations in cases when it is not appropriate.
Dividends are issued in the name specified in the stock certificates (e.g., SSS FAO, GSIS FAO, Citibank FAO A/C # ...).
For SSS–SILP participants, checks are delivered directly to the participants. For GSIS-SPFP participants, checks are delivered to GSIS which deliver them to the participants. For holdings pledged to bank/financial institutions, the delivery follows the provisions in the Pledge Agreement. Dividends are either delivered to stockholders by registered mail or by messengerial contractors or picked up by the stockholders at Stocks and Dividends Administration or Securities Transfer Services, Inc. (STSI). In all cases, an acknowledgment receipt is signed by the stockholder. In case the stockholder or his authorized representative is not present during delivery, the dividend checks are returned to STSI for safekeeping.
PREFERRED
The Company issues cash dividends out its surplus or net earnings on a quarterly basis and are payable at the end of January, April, July and October. As stipulated on the certificate, dividend earnings have a rate of 10% of par value per annum. Dividends are distributed through registered mail, messengerial contractors, or are personally picked up the stockholders.
Loss or Theft of Dividend Checks
Report lost dividend checks immediately to STSI for common cash dividends and to Stocks and Dividends Administration, for preferred cash dividends so that a stop payment order (SPO) can be placed against the original check if still negotiable. A notarized Affidavit of Loss should be submitted together with the corresponding SPO application fee whenever applicable.
Stale Checks
Meralco dividend checks may be transacted until one year after the payable date. If the stockholder fails to transact the check within that period, the check becomes stale and non-negotiable. The stockholder should then present the stale check to STSI or Stocks and Dividends Administration for revalidation or replacement.
Stock Dividends
Since Meralco common shares were publicly listed, its Board of Directors has been declaring common stock dividends once a year. However, in cases when it is not appropriate, the Board may forego stock dividend declarations. Payable date is scheduled around the middle of the year, except if shares to be distributed will come from an increase in capitalization filed with the SEC. In this case, SEC sets the record date.
For common stock dividends not received on scheduled payable dates, please call:
Stockholder Affairs (for stock and cash dividends issued before 1999), or STSI (for stock and cash dividends given in 1999 and onwards) to check the status of your dividend check deliveries.
Shown on the table below are the cash dividends declared by the company in the last two years:
Consolidation of Accounts
Duplicate accounts result when a name and address given to us by a stockholder of a stockbroker differ slightly from a name or address in the stock and transfer books of the Corporation.
This results in delivery delays since each record is treated as one stockholder. Thus, all correspondences, stock and cash dividend payments and all other communications are delivered separately.
For two or more accounts needing consolidation, forward your request to Securities Transfer Services, Inc. (STSI) through a signed letter to consolidate the accounts into one account.
