In re United Methodist School of Davao, Inc.

October 31, 2008 SEC EN BANC CASE NO. 01-08-0339 IN THE MATTER OF UNITED METHODIST SCHOOL OF DAVAO, INC., SEC REGISTRATION NO. D199700380 , petitioner. FOR: SETTING ASIDE THE ORDER OF REVOCATION OF THE CERTIFICATE OF REGISTRATION O R D E R Petitioner UNITED METHODIST SCHOOL OF DAVAO, INC. is a non-stock corporation registered with the Commission on 18 April 1997, under SEC Registration No. D199700380, with principal office address at 416 Vinzons St., Obrero, Davao City, engaged in the operation of preparatory and elementary school, as stated in the Articles of Incorporation. HCDAcE On 15 March 2004, its Certificate of Registration was revoked by the Commission, by virtue of SEC Order dated 10 February 2004, published on 14 February 2004 in the Philippine Daily Inquirer, for non-filing of reports. Petitioner now prays for the setting aside of the said Order of Revocation dated 10 February 2004, on the following grounds: 1. that Petitioner was not aware of the Commission's reportorial requirements; 2. that Petitioner was not notified of the revocation; and 3. that Petitioner is a mission school who provide quality education and has thirteen (13) employees who earn their living in the institution to support the daily needs of their families. 1 In support of its Petition, Petitioner submitted the following documents: 2 1. Trustees' Certificate dated 17 December 2007, certifying that at the joint regular meeting of the members and the Board of Trustees, held on 12 August 2007, at First United Methodist Church at 416 Vinzons St., Obrero, Davao City at which a quorum was present, the resolution allowing the filing of Petition to Set Aside Order of Revocation was unanimously approved; 2. Photocopies of the 2006-2008 Mayor's Permits, Davao City; 3. Photocopy of the Annual Income Tax Return for the year 2007 received by the BIR-Region 19 on 13 September 2007; 4. Photocopy of the Minutes of Annual Meeting held at the First United Methodist Church on 28 August 2005; EADCHS 5. Photocopies of the Certificate of Membership of the Petitioner at the Association of Christian School International and with the Private Schools and Administrators Association of Davao, Inc.; and 6. Photocopies of the official receipts issued by the Petitioner for the years 2006 to 2008. Petitioner submitted its 2007 General Information Sheet and 2007 Financial Statements to prove its intention to continue its registration with the Commission. It also manifested that it has no intention to violate the law and commits to immediately pay the fines due. On 09 January 2008, the corporation paid the fines of Php46,250.00, the amount assessed by the SEC-Davao Extension Office, under OR No. 5491423, for non/late filing of the following, on the years indicated hereunder: NOT FILED FILED LATE General Information Sheet 1998-2005 2006-2007 Financial Statements 1998-2006 2007 WHEREFORE, Petitioner's allegation that it was not aware of the reportorial requirements to be submitted to the Commission is without merit considering that Section 141 of the Corporation Code of the Philippines requires corporations to submit an annual report of its operations and such other requirements as the Commission may require. The Petitioner is bound by the said provision of the law and it cannot claim ignorance to excuse it from compliance therewith. The allegation that it was not aware of the Order of Revocation dated 27 March 2003 is also without merit, considering that the said Order was published 14 February 2004 in the Philippine Daily Inquirer, pursuant to SEC Memorandum Circular No. 4 Series of 2003, which states that in cases where the Commission may deem practicable considering that great number or unknown addresses of corporations involved, the show cause order shall be published once in a newspaper of general circulation. Publication in a newspaper of general circulation is sufficient notice for the Petitioner. EHTCAa However, finding the submitted documents sufficient to establish the other grounds and Petitioner's intent to continue as a going concern entity, the Commission's Order dated 27 March 2003 revoking the Certificate of Registration of UNITED METHODIST SCHOOL OF DAVAO, INC., is hereby SET ASIDE. SO ORDERED. Mandaluyong City. October 31, 2008. (SGD.) FE B. BARIN Chairperson (SGD.) MA. JUANITA E. CUETO Commissioner (SGD.) JESUS ENRIQUE G. MARTINEZ Commissioner (SGD.) RAUL J. PALABRICA Commissioner (SGD.) THADDEUS E. VENTURANZA Commissioner Footnotes 1. Supplemental Petition dated 10 September 2008. 2. Photocopies are verified against the original of the documents.