First Gen Corp. said over the weekend that it enters into contracts only after conducting “transparent and rigorous evaluations, and only upon thorough review and approval by its board.”
The company said that as a publicly listed firm, it observes the rights of all stockholders to equal access to material information by avoiding premature and selective disclosure, as mandated by law.
First Gen said its transactions are unanimously approved by all board members, including chairman and chief executive Federico Lopez and director Manuel Lopez.
The company said that under Federico Lopez’s leadership, operations continue to drive consistent profitability, resulting in record earnings last year. These earnings totaled roughly $2 billion over the past five years.
First Gen reaffirmed its decision to avoid coal investments as it pursues a transition into a 100-percent renewable energy company.
It issued the statement after factions of Lopez Inc. ousted Federico Lopez as president and chief executive of the private holding firm on Feb. 27, citing a loss of trust and confidence.
The majority shareholders, representing a 71-percent stake, alleged that Federico Lopez oversaw transactions at First Gen without prior board authorization. Federico Lopez and his brother, Benjamin Lopez, cast the dissenting votes in the 5-2 decision to remove him.
A court order has temporarily blocked the ouster, allowing Federico Lopez to remain in his post. In a complaint filed with the Mandaluyong Regional Trial Court, Federico Lopez alleged his removal was retaliation for his refusal to authorize a P2-billion capital infusion into ABS-CBN Corp.
The legal battle has also drawn in ABS-CBN Corp. Court documents filed by Federico Lopez claim a special audit identified nearly P1 billion in retirement payments to 68 unidentified individuals and a P2.56 billion pool for executive bonuses at the media network.
ABS-CBN Corp. directors, including ABS-CBN president and chief executive Carlo Katigbak, denied the claims. The board described the allegations of unresolved audit findings and excessive payouts as “unfounded” and “baseless.”
The media company said it is not a party to the legal case.
First Gen reiterated its commitment to its decade-old pledge to avoid coal investments and pursue a transition into a 100-percent renewable energy company. The firm said that as a publicly-listed entity, it observes the rights of all stockholders to equal access to material information as mandated by law.
The majority factions seeking the leadership change include Lopez Inc. chairman Rafael Lopez, ABS-CBN chairman Martin Lopez, Miguel Ernesto Lopez and Maria Eugenia Brown. They have filed a motion to dissolve the court order that halted the ouster.
