Because SBDMC has invested and owns 30 percent of the capital stock of Teco, it was entitled to two seats in the Teco board, Ou said.
'To respect the [joint venture], it has been the practice of SBDMC from the very beginning to nominate one director each from UDC and SBMA,' he said.
Under this setup, the SBDMC board of directors confirmed in 2017 the nomination of Eisma and the reappointment of Jeff Lin, SBDMC president, to represent SBDMC's shares in the Teco board.
'While the directors representing SBDMC each hold 25 nominal shares, the true and legal ownership of these shares still remains with SBDMC,' Ou said.
The SBDMC issued the clarification after Manila-based lawyer Raymund Palad filed a case against Eisma before the Office of the Ombudsman for allegedly failing to divest her interest in TECO 3C.
The SBDMC chief, however, clarified that the operator of the Subic Bay Gateway Park in this free port was formed as a result of a joint venture (JV) agreement between the SBMA, which has 49 percent interest, and United Development Corp.
'Pursuant to the JVA, SBMA is represented by four nominees to the SBDMC Board of Directors,' Ou said.