accordance with the SEA to prevent decision making influenced by personal interest, whether directly or indirectly. Reporting on conflicts of interest of directors and executives shall be in accordance with
action or to refrain from any action, in following cases: (1) The actual objective or substance of m anaging the mutual fund constitutes an avoidance of the provisions or the rules. (2) The management of
holders, investment decision, or price of the securities might be impacted, the SEC will order the company to have a special audit on such financial statements and report the result of such audit to the SEC
the shareholders in matters that may significantly affect the fund's benefit; 2) Disclose to the clients the details of the practice and the actual course of action concerning the exercise of voting
directors; following up and inspecting their performance A Right in Filing Complaints and Lawsuits In case a shareholder is affected by misconduct of a director or a management executive, the s hareholder
sufficient information for investors to make an informed investment decision. Existing shareholders affected by dilution – the company must disclose clear and sufficient information in the notice calling
penalty to be imposed on the offender. Appeal Any person who is affected by, and disagrees with, an administrative order has the right to appeal such order. The appeal procedure is provided by the SEC
shares at a discount causes dilution effect to the shareholders. Therefore, offers must be reasonable and there must be a process that allows shareholders who are affected by dilution to take part in the