MA. BELEN FLORDELIZA C. G.R. No. 178511
ANG-ABAYA,
FRANCIS JASON
A.
ANG, HANNAH ZORAYDA A.
ANG, and VICENTE G. GENATO,
Petitioners, Present:
Ynares-Santiago, J. (Chairperson),
- versus - Austria-Martinez,
Carpio Morales,*
Chico-Nazario, and
Reyes, JJ.
EDUARDO G. ANG,
Respondent. Promulgated:
December 4, 2008
x
----------------------------------------------------------------------------------------
x
YNARES-SANTIAGO, J.:
This
Petition for Review on Certiorari[1]
under Rule 45 of the Rules of Court assails the March 6, 2007 Decision[2] of
the Court of Appeals in CA-G.R. SP No. 94708, which nullified and set aside the
July 26, 2005 and March 29, 2006
Resolutions[3] of the Secretary of
Justice in I.S. No. MAL-2004-1167 directing the withdrawal of the information
filed against petitioners for violation of Section 74 of the Corporation Code. Also assailed is the June 19, 2007 Resolution[4]
denying the Motion for Reconsideration.
Vibelle
Manufacturing Corporation (VMC) and Genato Investments, Inc. (Genato) (collectively
referred to as “the corporations”) are family-owned corporations, where petitioners
Ma. Belen Flordeliza C. Ang-Abaya (Flordeliza), Francis Jason A. Ang (Jason),
Vincent G. Genato (Vincent), Hanna Zorayda A. Ang (Hanna) and private
respondent Eduardo G. Ang (Eduardo) are shareholders, officers and members of
the board of directors.
Prior to
the instant controversy, VMC, Genato, and Oriana Manufacturing Corporation
(Oriana) filed Civil Case No. 4257-MC, which is a case for damages with prayer
for issuance of a temporary restraining order (TRO) and/or writ of preliminary
injunction against herein respondent Eduardo, together with Michael Edward Chi
Ang (Michael), and some other persons for allegedly conniving to fraudulently
wrest control/management of the corporations.[5] Eduardo allegedly borrowed substantial
amounts of money from the said corporations without any intention to repay;
that he repeatedly demanded for increases in his monthly allowance and for more
cash advances contrary to existing corporate policies; that he harassed
petitioner Flordeliza to transfer and/or sell certain corporate and personal
properties in order to pay off his personal obligations; that he attempted to
forcibly evict petitioner Jason from his office and claim it as his own; that
he interfered with and disrupted the daily business operations of the
corporations; that Michael was placed on preventive suspension due to prolonged
absence without leave and commission of acts of disloyalty such as carrying out
orders of Eduardo which were detrimental to their business, using privileged
information and confidential documents/data obtained in his capacity as Vice
President of the corporations, and admitting to have sabotaged their
distribution system and operations.
During the
pendency of Civil Case No. 4257-MC, particularly in July, 2004, Eduardo sought permission
to inspect the corporate books of VMC and Genato on account of petitioners’ alleged
failure and/or refusal to update him on the financial and business activities
of these family corporations.[6] Petitioners denied the request claiming that
Eduardo would use the information obtained from said inspection for purposes
inimical to the corporations’ interests, considering that: “a) he is harassing
and/or bullying the Corporation[s] into writing off P165,071,586.55 worth of
personal advances which he had unlawfully obtained in the past; b) he is
unjustly demanding that he be given the office currently occupied by Mr.
Francis Jason Ang, the Vice-President for Finance and Corporate Secretary; c)
he is usurping the rights belonging exclusively to the Corporation; and d) he
is coercing and/or trying to inveigle the Directors and/or Officers of the
Corporation to give in to his baseless demands involving specific corporate
assets.”[7]
Because of
petitioners’ refusal to grant his request to inspect the corporate books of VMC
and Genato, Eduardo filed an Affidavit-Complaint[8]
against petitioners Flordeliza and Jason, charging them with violation (two
counts) of Section 74, in relation to Section 144, of the Corporation Code of
the Philippines.[9] Ma. Belinda G. Sandejas (Belinda), Vincent,
and Hanna were subsequently impleaded for likewise denying respondent’s request
to inspect the corporate books.
Petitioners
filed a Joint Counter-Affidavit praying for the dismissal of the complaint for
lack of factual and legal basis, or for the suspension of the same while Civil
Case No. 4257-MC is still pending resolution.[10] They denied violating Section 74 of the
Corporation Code and reiterated the allegations contained in their complaint in
Civil Case No. 4257-MC. Petitioners blamed
Eduardo’s lavish lifestyle, which is funded by personal loans and cash advances
from the family corporations. They
alleged that Eduardo consistently pressured petitioner Flordeliza, his
daughter, to improperly transfer ownership of the corporations’ V.A.G. Building
to him;[11]
to disregard the company policy prohibiting advances by shareholders; to unduly
increase his corporate monthly allowance; and to sell her Wack-Wack Golf proprietary
share and use the proceeds thereof to pay his personal financial
obligations. When the proposed transfer
of the V.A.G. Building did not materialize, petitioners claim that Eduardo instituted
an action to compel the donation of said property to him.[12] Furthermore, they claim that Eduardo attempted
to forcibly evict petitioner Jason from his office at VMC so he can occupy the
same; that Eduardo and his cohorts constantly created trouble by intervening in
the daily operations of the corporations without the knowledge or consent of
the board of directors.
Meanwhile,
in Civil Case No. 4257-MC, the trial court rendered a Decision granting the
permanent injunction applied for by the corporations.[13] However, the Court of Appeals subsequently
rendered a Decision[14] declaring
that Eduardo, his son Michael, and the other persons impleaded in Civil Case
No. 4257-MC, were imprudently declared in default by the trial court. The
appellate court thus annulled the permanent injunction issued by the trial
court and remanded the case for further proceedings. VMC, Genato, and Oriana corporations filed a
Petition for Review on Certiorari before this Court, but the same was denied
for failure to sufficiently show any reversible error in the Decision of the Court
of Appeals.[15] The three corporations filed a Motion for Reconsideration,
but the same was denied with finality on June 25, 2008.
Meanwhile,
on February 3, 2005, the City Prosecutor’s Office of Malabon City issued a
Resolution[16] recommending that
petitioners be charged with two counts of violation of Section 74 of the
Corporation Code, but dismissed the complaint against Belinda for lack of
evidence.[17] Petitioners filed a Petition for Review[18]
before the Department of Justice (DOJ), which reversed the recommendation of
the City Prosecutor of Malabon City.[19] The dispositive portion of the DOJ Resolution
dated July 26, 2005, reads:
Wherefore, premises
considered, the assailed resolution is REVERSED and SET ASIDE. The City Prosecutor of Malabon City is hereby
directed to cause the withdrawal of the corresponding information filed against
respondents [herein petitioners] for violation of Section 74 of the Corporation
Code of the Philippines and to report the action taken thereon within ten (10)
days from the receipt hereof.
SO ORDERED.[20]
The DOJ denied Eduardo’s
Motion for Reconsideration[21]
in a Resolution[22] dated March 29, 2006. On appeal, the Court of Appeals rendered the
assailed Decision, the dispositive portion of which states:
WHEREFORE, the instant
petition is partially GRANTED. The
assailed Resolutions of public respondent dated July 26, 2005 and March 29,
2006 are hereby NULLIFIED and SET ASIDE.
However, due to the present existence of a prejudicial question, the
criminal case docketed I.S. No. MAL-2004-1167 is hereby SUSPENDED until Civil
Case No. 4257-MC is decided on the merits with finality. [23]
The appellate court ruled that the Secretary of
Justice committed
grave abuse of discretion amounting to lack or excess of jurisdiction in
reversing the Resolutions of the Malabon City Prosecutor and in finding that Eduardo
did not act in good faith when he demanded for the examination of VMC and Genato’s
corporate books. It further held that Eduardo
can demand said examination as a stockholder of both corporations; that Eduardo
raised legitimate questions that necessitated inspection of the corporate books
and records; and that petitioners’ refusal to allow inspection created probable
cause to believe that they have committed a violation of Section 74 of the
Corporation Code.
On June 19, 2007, the Court of Appeals denied the Motions
for Reconsideration filed by petitioners and the Secretary of Justice.[24] Hence, this petition raising the following
issues:
WHETHER OR NOT THE HONORABLE COURT OF APPEALS WAS
CORRECT IN ITS FINDING THAT THE HONORABLE JUSTICE SECRETARY’S REVERSAL OF THE
MALABON CITY PROSECUTOR’S RESOLUTION FINDING PROBABLE CAUSE AGAINST
HEREIN PETITIONERS WAS DONE CONTRARY TO THE APPLICABLE LAW AND JURISPRUDENCE
TANTAMOUNT TO GRAVE ABUSE OF DISCRETION.
WHETHER OR NOT THE HONORABLE JUSTICE SECRETARY
COMMITTED GRAVE ABUSE OF DISCRETION AMOUNTING TO LACK OR EXCESS OF JURISDICTION
IN REVERSING THE RESOLUTION OF THE MALABON CITY PROSECUTOR FINDING PROBABLE
CAUSE AGAINST PETITIONERS AFTER PRELIMINARY INVESTIGATION FOR VIOLATION OF
SECTION 74 OF THE CORPORATION CODE OF THE PHILIPPINES.
WHETHER OR NOT THE HONORABLE JUSTICE SECRETARY
COMMITTED GRAVE ABUSE OF DISCRETION AMOUNTING TO LACK OR EXCESS OF JURISDICTION
IN FINDING THAT PETITIONERS ACTED IN GOOD FAITH WHEN THEY DENIED PRIVATE
RESPONDENT’S DEMAND FOR INSPECTION OF CORPORATE BOOKS.[25]
We grant
the petition.
Probable
cause, for purposes of filing a criminal information, has been defined as such
facts as are sufficient to engender a well-founded belief that a crime has been
committed and that respondent is probably guilty thereof. It is such a
state of facts in the mind of the prosecutor as would lead a person of ordinary
caution and prudence to believe or entertain an honest or strong suspicion that
a thing is so. The term does not mean “actual or positive cause;” nor
does it import absolute certainty. It is merely based on opinion and
reasonable belief. Thus, a finding of probable cause does not require an
inquiry into whether there is sufficient evidence to procure a
conviction. It is enough that it is believed that the act or omission
complained of constitutes the offense charged. Precisely, there is a
trial for the reception of prosecution’s evidence in support of the charge.”[26]
The
determination of the existence of probable cause lies within the discretion of
the prosecuting officers after conducting a preliminary investigation upon
complaint of an offended party. Their decisions are reviewable by the
Secretary of Justice who may direct the filing of the corresponding information
or to move for the dismissal of the case.[27]
In
reversing the Resolutions of the Secretary of Justice directing the withdrawal
of the information filed against petitioners for lack of probable cause, the
Court of Appeals held that it was beyond the Secretary of Justice’s authority
to determine the motives of Eduardo in seeking an inspection of the
corporations’ books and papers.
In order that probable cause to file a criminal case may be arrived at, or
in order to engender the well-founded belief that a crime has been committed,
the elements of the crime charged should be present.[28]
This is based on the principle that every
crime is defined by its elements, without which there should be – at the most –
no criminal offense.
In Gokongwei,
Jr. v. Securities and Exchange Commission,[29]
this Court explained the rationale behind a stockholder's right to inspect
corporate books, to wit:
The stockholder's right of
inspection of the corporation's books and records is based upon their ownership
of the assets and property of the corporation. It is, therefore, an incident of
ownership of the corporate property, whether this ownership or interest be
termed an equitable ownership, a beneficial ownership, or a quasi-ownership.
This right is predicated upon the necessity of self-protection. It is generally
held by majority of the courts that where the right is granted by statute to
the stockholder, it is given to him as such and must be exercised by him with
respect to his interest as a stockholder and for some purpose germane thereto
or in the interest of the corporation. In
other words, the inspection has to be germane to the petitioner's interest as a
stockholder, and has to be proper and lawful in character and not inimical to
the interest of the corporation.[30]
In Republic v. Sandiganbayan,[31]
the Court declared that the right to inspect and/or examine the records of a
corporation under Section 74 of the Corporation Code is circumscribed by the
express limitation contained in the succeeding proviso, which states that:
[I]t
shall be a defense to any action under this section that the person
demanding to examine and copy excerpts from the corporation's records and
minutes has improperly used any information secured through any prior
examination of the records or minutes of such corporation or of any other
corporation, or was not acting in good faith or for a legitimate
purpose in making his demand. (Emphasis supplied)
Thus, contrary to Eduardo’s insistence,
the stockholder’s right to inspect corporate books is not without
limitations. While the right of
inspection was enlarged under the Corporation Code as opposed to the old
Corporation Law (Act No. 1459, as amended),
It is now expressly required
as a condition for such examination that the one requesting it must not have
been guilty of using improperly any information secured through a prior
examination, or that the person asking for such examination must be acting in
good faith and for a legitimate purpose in making his demand.[32]
(Emphasis supplied)
In order therefore for the penal provision under Section 144
of the Corporation Code to apply in a case of violation of a stockholder or
member’s right to inspect the corporate books/records as provided for under Section
74 of the Corporation Code, the following elements must be present:
First. A director, trustee, stockholder or member has
made a prior demand in writing for a copy of excerpts from the corporation’s
records or minutes;
Second. Any officer or agent of the concerned corporation
shall refuse to allow the said director, trustee, stockholder or member of the
corporation to examine and copy said excerpts;
Third. If such refusal is made pursuant to a
resolution or order of the board of directors or trustees, the liability under
this section for such action shall be imposed upon the directors or trustees
who voted for such refusal; and,
Fourth. Where the officer or agent of the corporation
sets up the defense that the person demanding to examine and copy excerpts from
the corporation’s records and minutes has improperly used any information
secured through any prior examination of the records or minutes of such
corporation or of any other corporation, or was not acting in good faith or for
a legitimate purpose in making his demand, the contrary must be shown or proved.
Thus, in a criminal complaint for violation of Section 74 of
the Corporation Code, the defense of improper use or motive is in the nature of
a justifying circumstance that would exonerate those who raise and are able to prove
the same. Accordingly, where the
corporation denies inspection on the ground of improper motive or purpose, the
burden of proof is taken from the shareholder and placed on the corporation.[33]
This being the case, it would be
improper for the prosecutor, during preliminary investigation, to refuse or
fail to address the defense of improper use or motive, given its express statutory
recognition. In the past we have declared
that if justifying circumstances are claimed as a defense, they should have at
least been raised during preliminary investigation;[34]
which settles the view that the consideration and determination of justifying
circumstances as a defense is a relevant subject of preliminary investigation.
A
preliminary investigation is in effect a realistic judicial appraisal of the
merits of the case; sufficient proof of the guilt of the criminal respondent
must be adduced so that when the case is tried, the trial court may not be
bound, as a matter of law, to order an acquittal.[35] Although a preliminary investigation is not a
trial and is not intended to usurp the function of the trial court, it is not a
casual affair; the officer conducting the same investigates or inquires into
the facts concerning the commission of the crime with the end in view of
determining whether or not an information may be prepared against the accused.[36] After all, the purpose of preliminary
investigation is not only to determine whether there is sufficient ground to
engender a well-founded belief that a crime has been committed and the
respondent therein is probably guilty thereof and should be held for trial; it
is just as well for the purpose of securing the innocent against hasty,
malicious and oppressive prosecution, and to protect him from an open and
public accusation of a crime, from the trouble, expense and anxiety of a public
trial.[37] More
importantly, in the appraisal of the case presented to him for resolution, the
duty of a prosecutor is more to do justice and less to prosecute.[38]
If the prosecutor is convinced during preliminary
investigation of the validity of the respondent’s claim of a justifying
circumstance, then he must dismiss the complaint; if not, then he must file the
requisite information. This is his discretion, the exercise of which we grant sufficient
latitude.[39]
In the instant case, the Court finds that the Court of
Appeals erred in declaring that the Secretary of Justice exceeded his authority
when he conducted an inquiry on the petitioners’ defense of improper use and
motive on Eduardo’s part. As a necessary
element in the offense of refusal to honor a stockholder/member’s right to
inspect the corporate books/records, it was incumbent upon the Secretary of
Justice to determine that all the elements which constitute said offense are
present, in line with our ruling in Duterte v. Sandiganbayan.
A
preliminary investigation is the crucial sieve in the criminal justice system
which spells for an individual the difference between months if not years of
agonizing trial and possibly jail term, on the one hand, and peace of mind and
liberty, on the other. Thus, we have
characterized the right to a preliminary investigation as not a mere formal or
technical right but a substantive one, forming part of due process in criminal
justice.[40] Due process, in the instant case, requires
that an inquiry into the motive behind Eduardo’s attempt at inspection should have
been made even during the preliminary investigation stage, just as soon as
petitioners set up the defense of improper use and motive.
Petitioners
argue that Eduardo’s demand for an inspection of the corporations’ books is based
on the latter’s attempt in bad faith at having his more than P165 million
advances from the corporations written off; that Eduardo is unjustly demanding
that he be given the office of Jason, or the Vice Presidency for Finance and
Corporate Secretary; that Eduardo is usurping rights belonging exclusively to
the corporations; and Eduardo’s attempts at coercing the corporations, their
directors and officers into giving in to his baseless demands involving
specific corporate assets. Specifically,
petitioners accuse Eduardo of the following:
1. He is a spendthrift, using the family corporations’ resources
to sustain his extravagant lifestyle. During his incumbency as officer of VMC
and Genato (from 1984 to 2000), he was able to obtain massive amounts by way of
cash advances from these corporations, amounting to more than P165 million;
2. He is exercising undue pressure upon petitioners in order to
acquire ownership, through the forced execution of a deed of donation, over the
VAG Building in San Juan, which building belongs to Genato;
3. He is putting pressure on the corporations, through their
directors and officers, for the latter to disregard their respective policies
which prohibit the grant of cash advances to stockholders.
4. At one time, he coerced Flordeliza for the latter to sell her
Wack-Wack Golf Proprietary Share;
5. In May 2003, without the requisite authority, he called a
“stockholders’ meeting” to demand an increase in his P140,000.00 monthly
allowance from the corporation to P250,000.00; demand a cash advance of
US$10,000; and to demand that the corporations shoulder the medical and
educational expenses of his family as well as those of the other stockholders;
6. In November 2003, he demanded that he be given an office
within the corporations’ premises. In December 2003, he stormed the
corporations’ common office, ordered the employees to vacate the premises,
summoned the directors to a meeting, and there he berated them for not acting
on his requests. In January 2004, he
returned to the office, demanding the transfer of the Accounting Department and
for Jason to vacate his office by the end of the month. He likewise left a letter which contained his
demands. At the end of January 2004, he
returned, ordered the employees to leave the premises and demanded that Jason
surrender his office and vacate his desk. He did this no less than four (4) times. As a result, the respective boards of
directors of the corporations resolved to ban him from the corporate premises;
7. He has been interfering in the everyday operations of VMC and
Genato, usurping the duties, rights and authority of the directors and officers
thereof. He attempted to lease out a
warehouse within the VMC premises without the knowledge and consent of its
directors and officers; during the wake of the former President of VMC and
Genato, he issued instructions for the employees to close down operations for
the whole duration of the wake, against the corporate officers’ instructions to
attend the wake by batch, so as not to hamper business operations; he has
caused chaos and confusion in VMC and Genato as a result;[41]
8. He is out to sabotage the family corporations.[42]
These
serious allegations are supported by official and other documents, such as
board resolutions, treasurer’s affidavits and written communication from the
respondent Eduardo himself, who appears to have withheld his objections to
these charges. His silence virtually
amounts to an acquiescence.[43] Taken together, all these serve to justify
petitioners’ allegation that Eduardo was not acting in good faith and for a
legitimate purpose in making his demand for inspection of the corporate
books. Otherwise stated, there is lack
of probable cause to support the allegation that petitioners violated Section
74 of the Corporation Code in refusing respondent’s request for examination of
the corporation books.
WHEREFORE, the Petition for Review on Certiorari
is GRANTED. The March 6, 2007 Decision
and June 19, 2007 Resolution of the Court of Appeals in CA-G.R. SP No. 94708
are REVERSED and SET ASIDE. The July 26,
2005 and March 29, 2006 Resolutions of the Secretary of Justice directing the
withdrawal of the information filed against petitioners for violation of
Section 74 of the Corporation Code are accordingly REINSTATED and AFFIRMED.
SO ORDERED.
CONSUELO
YNARES-SANTIAGO
Associate Justice
WE CONCUR:
MA. ALICIA AUSTRIA-MARTINEZ
Associate Justice
CONCHITA CARPIO MORALES MINITA V. CHICO-NAZARIO
Associate
Justice Associate Justice
RUBEN T. REYES
Associate Justice
ATTESTATION
I
attest that the conclusions in the above decision were reached in consultation
before the case was assigned to the writer of the opinion of the Court’s
Division.
CONSUELO YNARES-SANTIAGO
Associate Justice
Chairperson, Third Division
CERTIFICATION
Pursuant
to Section 13, Article VIII of the Constitution and the Division Chairperson’s
Attestation, it is hereby certified that the conclusions in the above Decision
were reached in consultation before the case was assigned to the writer of the
opinion of the Court’s Division.
REYNATO
S. PUNO
Chief Justice
* In lieu of Associate Justice Antonio Eduardo B. Nachura.
[1] Rollo, pp. 3-46.
[2] Id. at 51-63; penned by Associate
Justice Ramon M. Bato, Jr. and concurred in by Associate Justices Remedios A.
Salazar-Fernando and Jose C. Mendoza.
[3] Id. at 249-252 and 253.
[4] Id. at 65-66.
[5] Id. at 134-162, entitled “Vibelle Manufacturing Corporation, Genato
Investments, Incorporated, and Oriana Manufacturing Corporation v. Eduardo
Genato Ang, Michael Edward Chi Ang, and John Does and Jane Does.” The case was raffled to Branch 74 of the
Regional Trial Court of Malabon City.
[6] Id. at 124 and 125.
[7] Id. at 221 and 223.
[8] Id. at 117-121: I.S. No. Mal. 2004-1167.
[9] Batas Pambansa Blg. 68 (1980),
Sec. 74. Books to be kept;
stock transfer agent. - Every corporation shall keep and carefully preserve
at its principal office a record of all business transactions and minutes of
all meetings of stockholders or members, or of the board of directors or
trustees, in which shall be set forth in detail the time and place of holding
the meeting, how authorized, the notice given, whether the meeting was regular
or special, if special its object, those present and absent, and every act done
or ordered done at the meeting. Upon the demand of any director, trustee,
stockholder or member, the time when any director, trustee, stockholder or
member entered or left the meeting must be noted in the minutes; and on a
similar demand, the yeas and nays must be taken on any motion or proposition,
and a record thereof carefully made. The protest of any director, trustee,
stockholder or member on any action or proposed action must be recorded in full
on his demand.
The
records of all business transactions of the corporation and the minutes of any
meetings shall be open to inspection by any director, trustee, stockholder or
member of the corporation at reasonable hours on business days and he may
demand, in writing, for a copy of excerpts from said records or minutes, at his
expense.
Any
officer or agent of the corporation who shall refuse to allow any director,
trustees, stockholder or member of the corporation to examine and copy excerpts
from its records or minutes, in accordance with the provisions of this Code,
shall be liable to such director, trustee, stockholder or member for damages, and
in addition, shall be guilty of an offense which shall be punishable under
Section 144 of this Code: Provided, That if such refusal is made pursuant to a
resolution or order of the board of directors or trustees, the liability under
this section for such action shall be imposed upon the directors or trustees
who voted for such refusal: and Provided, further, That it shall be a defense
to any action under this section that the person demanding to examine and copy
excerpts from the corporation's records and minutes has improperly used any
information secured through any prior examination of the records or minutes of
such corporation or of any other corporation, or was not acting in good faith
or for a legitimate purpose in making his demand.
Stock
corporations must also keep a book to be known as the "stock and transfer
book", in which must be kept a record of all stocks in the names of the
stockholders alphabetically arranged; the installments paid and unpaid on all
stock for which subscription has been made, and the date of payment of any
installment; a statement of every alienation, sale or transfer of stock made,
the date thereof, and by and to whom made; and such other entries as the
by-laws may prescribe. The stock and transfer book shall be kept in the
principal office of the corporation or in the office of its stock transfer
agent and shall be open for inspection by any director or stockholder of the
corporation at reasonable hours on business days.
No stock
transfer agent or one engaged principally in the business of registering
transfers of stocks in behalf of a stock corporation shall be allowed to
operate in the Philippines unless he secures a license from the Securities and
Exchange Commission and pays a fee as may be fixed by the Commission, which
shall be renewable annually: Provided, That a stock corporation is not
precluded from performing or making transfer of its own stocks, in which case
all the rules and regulations imposed on stock transfer agents, except the
payment of a license fee herein provided, shall be applicable.
Sec.
144. Violations of the Code. - Violations of any of the provisions of this
Code or its amendments not otherwise specifically penalized therein shall be
punished by a fine of not less than one thousand (P1,000.00) pesos but not more
than ten thousand (P10,000.00) pesos or by imprisonment for not less than
thirty (30) days but not more than five (5) years, or both, in the discretion
of the court. If the violation is committed by a corporation, the same may,
after notice and hearing, be dissolved in appropriate proceedings before the
Securities and Exchange Commission: Provided, That such dissolution shall not
preclude the institution of appropriate action against the director, trustee or
officer of the corporation responsible for said violation: Provided, further,
That nothing in this section shall be construed to repeal the other causes for
dissolution of a corporation provided in this Code.
[10] Rollo, pp. 67-74.
[11]
The VAG Building was initially intended to be transferred or donated to
Eduardo, subject to certain conditions pursuant to the request or suggestion of
the late Belen K. Genato (Rollo, pp. 903-907); however, said transfer did not
materialize (Rollo, pp. 190-191).
[12]
Civil Case No. Q-0453241 filed with the Regional Trial Court of Quezon City,
Branch 100. The case was dismissed in an
Order of the RTC-QC dated January 6, 2006.
[13] Rollo, pp. 505-512, the dispostive
portion of which, reads:
WHEREFORE,
premises considered, judgment is hereby rendered:
1. Permanently enjoining defendants
Eduardo Genato Ang and Michael Edward Chi Ang, and/or any of their agents,
representatives, lawyers, assignees, heirs, or any other persons acting under
their authority or instructions, from:
a. Occupying, demanding, claiming or
otherwise attempting to occupy any position or office in Plaintiff
corporations, (except those concomitant to their rights as stockholders, as the
case may be), without the consent of the boards of directors of plaintiff
corporations;
b. Entering the offices of plaintiff
corporations located at 18 J.P. Bautista Ave., Malabon City, Metro Manila, or
any of plaintiff corporations’ satellite offices, business centers,
distribution offices, warehouses, or any other property belonging to plaintiff
corporations or otherwise used by them, without consent of the boards of
directors of plaintiff corporations;
c. Communicating with the officers and
employees, clients, distributors, business associates of plaintiff
corporations, as well as pertinent government agencies, for the purpose of
sowing enmity between said persons and plaintiff corporations, or to otherwise
disrupt the smooth operation and management of plaintiff corporations;
d. Usurping or exercising rights,
privileges or property belonging to plaintiff corporations, or representing
plaintiff corporations or acting for and in behalf of plaintiff corporations in
any transactions or dealing with clients, distributors and banks of plaintiff
corporations, or government agencies, or any other persons with business with
plaintiff corporations;
e. Seizing, interfering with or
otherwise disrupting the management, operations and/or business of plaintiff
corporations, and other similar acts of harassment and extortion that would
tend to cause damage to plaintiff corporations.
Further,
defendants are hereby ordered to pay plaintiffs the amount of P500,000.00 for
and as attorney’s fees and costs of the suit.
SO ORDERED.
[14]
CA-G.R. CV No. 84736, penned by Associate Justice Enrico A. Lanzanas and
concurred in by Associate Justices Edgardo P. Cruz, and Jose C. Reyes, Jr.; Rollo, pp. 911-927.
[15]
In G.R. No. 178586.
[16] Rollo, pp. 114-116; penned by 1st
Assistant City Prosecutor Magno T. Pablo, Jr., as approved by Malabon
City-Navotas Prosecutor Jorge G. Catalan, Jr.
[17] Id. at 116 and 220: The City Prosecutor
of Malabon found that Ma. Belinda G. Sandejas was not present during the board
meeting on September 4, 2004 and did not vote on the Resolution denying
Eduardo’s request to inspect the corporate books of VMC and GII;.
[18] Id. at 423-438.
[19] Id. at 249-252; penned by Undersecretary
Ernesto L. Pineda.
[20] Id. at 252.
[21] Id. at 395-406.
[22] Id. at 253.
[23] Id. at 62-63.
[24]
CA rollo, pp. 513-532 and Rollo, pp. 672-683.
[25] Rollo, pp. 24-25.
[26] Villanueva v. Secretary of Justice,
G.R. No. 162187, November 18, 2005, 475 SCRA 495, 511.
[27] Advincula v. Court of Appeals, 397 Phil.
641, 650-651 (2000).
[28] Duterte v. Sandiganbayan, G.R. No.
130191, April 27, 1998, 289 SCRA 721.
[29]
178 Phil. 266 (1979).
[30] Id. at 314-315, citing Fletcher Cyc,
Private Corporations, Vol. 5, 1976 Rev. Ed., §.
2213, 2218 & 2222, pp. 693, 709, 725. (Emphasis supplied)
[31]
G.R. Nos. 88809 and 88858, July 10, 1991, 199 SCRA 39.
[32] Gonzales v. Philippine National Bank,
207 Phil. 425, 430.
[33]
5A Fletcher Cyc. Corp. §.
2220, 2008.
[34] People v. Caratao, G.R. No. 126281, June
10, 2003, 403 SCRA 482; People v. Dorado,
G.R. No. 122248, February 11, 1999, 303 SCRA 61; People v. Ronquillo, G.R. No. 96125, August 31, 1995, 247 SCRA 793; People v.
Salazar, G.R. No. 84391, April 7, 1993, 221 SCRA 170; People v. Vicente, G.R. No. L-31725, February 18, 1986, 141 SCRA
347.
[35] Perez v. Ombudsman, G.R. No. 131445, May
27, 2004, 429 SCRA 357.
[36] Sales v. Sandiganbayan, G.R. No. 143802,
November 16, 2001, 369 SCRA 293.
[37] Okabe v. Judge Gutierrez, G.R. No.
150185, May 27, 2004, 429 SCRA 685, citing People
v. Poculan, 167 SCRA 176 (1988).
[38] Estrada v. Desierto, G.R. Nos. 146710-15,
March 2, 2001, 356 SCRA 108.
[39] Camanag v. Guerrero, G.R. No. 121017, February
17, 1997, 268 SCRA 473.
[40] Maza v. Gonzalez, G.R. Nos. 172074-76, June 1,
2007, 523 SCRA 318.
[41]
Court of Appeals Rollo, pages
omitted, Joint Counter-Affidavit of Flordeliza Ang-Abaya and Jason Ang.
[42] Id., Joint Counter-Affidavit of Hannah
Ang and Vincent Genato.
[43] Lagon v. Hooven Comalco Industries, Inc.,
G.R. No. 135657, January 17, 2001, 349 SCRA 363.