PCD Nominee Corporation
Encyclopedia
PCD Nominee Corporation (PCNC) is a wholly owned subsidiary
of the Philippine Central Depository, a corporation established to improve operations in securities transactions and to provide a fast, safe and highly efficient system for securities settlement in the Philippines
. PCNC acts as trustee-nominee for all shares lodged in the PCD system, where trades effected on the Philippine Stock Exchange
are finally settled with the PCD. Persons who opt to trade using the PCD do not receive stock certificate
s as an indicator of ownership as trading using the PCD is completely paperless.
PCNC serves as one of the largest shareholders, if not the largest shareholder, in many Philippine corporations. For example, PCNC is the second largest shareholder in Banco de Oro, the Philippines' largest bank
, with the corporation owning approximately 25% of BDO stock, below SM Investments Corporation, which owns approximately 29% of BDO as of March 31, 2009. However, while it may appear that PCNC is the actual shareholder in the said company, shares held by PCNC do not grant voting powers to it as beneficial ownership of the shares still remain with the lodging stockholder. By policy, PCNC does not vote the shares it was entrusted with in its name. Additionally, PCNC is owner of 49% of IPVG Corporation, a major technology company in the Philippines.
Subsidiary
A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a...
of the Philippine Central Depository, a corporation established to improve operations in securities transactions and to provide a fast, safe and highly efficient system for securities settlement in the Philippines
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...
. PCNC acts as trustee-nominee for all shares lodged in the PCD system, where trades effected on the Philippine Stock Exchange
Philippine Stock Exchange
The Philippine Stock Exchange is the national stock exchange of the Philippines. It is one of the oldest stock exchanges in Southeast Asia, having been in continuous operation since its inception in 1927...
are finally settled with the PCD. Persons who opt to trade using the PCD do not receive stock certificate
Stock certificate
In corporate law, a stock certificate is a legal document that certifies ownership of a specific number of stock shares in a corporation...
s as an indicator of ownership as trading using the PCD is completely paperless.
PCNC serves as one of the largest shareholders, if not the largest shareholder, in many Philippine corporations. For example, PCNC is the second largest shareholder in Banco de Oro, the Philippines' largest bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
, with the corporation owning approximately 25% of BDO stock, below SM Investments Corporation, which owns approximately 29% of BDO as of March 31, 2009. However, while it may appear that PCNC is the actual shareholder in the said company, shares held by PCNC do not grant voting powers to it as beneficial ownership of the shares still remain with the lodging stockholder. By policy, PCNC does not vote the shares it was entrusted with in its name. Additionally, PCNC is owner of 49% of IPVG Corporation, a major technology company in the Philippines.