In the Matter of Celebrity Cinema International, Inc.

[PED * CASE NO. 97-2156. September 29, 1999.] IN THE MATTER OF CELEBRITY CINEMA INTERNATIONAL, INC. R E S O L U T I O N The center of the investigation in the instant case is the corporate franchise of Celebrity Cinema International, Inc. for having withdrawn and returned its paid-up capital to its stockholders upon incorporation. Records show that the above-mentioned corporation was registered with this Commission on July 2, 1996 under SEC Registry No. 11996-01861 with an authorized capital stock of ten million (P10,000,000.00) pesos, and six hundred twenty five thousand (P625,000.00) pesos of which has been paid. At the scheduled conference before the Supervision and Monitoring Department, the Treasurer-in-trust, Isabelita Caponpon, submitted a verified affidavit stating that after paying the registration fees subject corporation was shelved due to some personal problems among the stockholders, and that the paid-up capital was withdrawn and returned to the stockholders even before the SEC verification without any corresponding receipt whatsoever. On April 17, 1997, the Supervision and Monitoring Department indorsed the matter for appropriate action to this Department. On May 28, 1997 and July 28, 1997, the incorporators were directed to appear for conference on June 24, 1997 and August 21, 1997, respectively; however despite due notice, as evidenced by the return slips, they failed to appear. On March 1, 1999, and March 25, 1999, the treasurer-in-trust was directed anew to appear for conference on March 25, 1999, and April 22, 1999, respectively; however despite receipt thereof, she failed to appear. On the other hand, the notice sent to the other incorporators on March 1, 1999, was returned unserved with a notation "RTS-Unclaimed." The act of the corporation in returning the paid-up capital in its entirety to its stockholders despite non-continuance of the business operation is a patent violation of Section 3.A.3 of the Rules on Paid-up Capital warranting a penalty of suspension or revocation of its corporate franchise. ADSTCI WHEREFORE, premises considered, and for failure of respondent corporation to comply with any of the lawful orders of this Commission despite due notice, it is hereby directed that revocation proceedings be had against Celebrity Cinema, Inc. bearing SEC Registration Number 11996-01861 for violation of, and in accordance with the Revised Rules and Regulations for Submission/Verification of the Bank Certificate of Deposits and Application of Initial Paid-up Capital in relation to Section 6 (L) 3 of P.D. 902-A, as amended. SO RESOLVED. Mandaluyong City, Metro Manila. September 29, 1999. (SGD.) RUBEN C. LADIA Acting Director