In re German Doctors for Developing Countries, Inc.

October 31, 2008 SEC EN BANC CASE NO. 09-07-0201 IN THE MATTER OF COMMITTEE OF GERMAN DOCTORS FOR DEVELOPING COUNTRIES, INC. SEC REGISTRATION NO. AN091-197369 , petitioner. FOR : Setting Aside the Order of Revocation of the Certificate of Registration O R D E R Petitioner COMMITTEE OF GERMAN DOCTORS FOR DEVELOPING COUNTRIES, INC. is a non-stock corporation registered with the Commission on 28 October 1991, under SEC Registration No. AN091-197369, with principal office address at Motorola-Hayes Streets, Cagayan de Oro City, organized to provide charitable medical and social services, as stated in its Articles of Incorporation. On 29 September 2003, its Certificate of Registration was revoked by the Commission, by virtue of SEC Order dated 20 August 2003, published on 28 August 2003 in the Philippine Daily Inquirer, for non-filing of reports. SDIaHE Petitioner now prays for the setting aside of the said Order of Revocation dated 20 August 2003, on the following grounds: 1. that Petitioner was not aware of SEC's reportorial requirements and did not receive any notice of Revocation from SEC. 2. that Petitioner is still active with the same goal despite non-filing of reports; 3. that Petitioner is actively involved in crucial health projects and has expanded its charity operations in Northern Mindanao, Oriental Mindoro and in BUDA, Marilog District, Davao City; In support of its Petition, Petitioner submitted the following documents: * 1. Photocopy of Resolution dated 14 January 2008, by Office of the City Council of City of Cagayan de Oro, expressing gratitude, appreciation and commendation to the Petitioner; 2. Trustees Certificate dated 24 July 2007, certifying that at the regular meeting of the Board of Trustees, held on 15 February 2007, at which a quorum was present, the resolution allowing the filing of Petition to Set Aside Order of Revocation was unanimously approved; 3. Photocopy of news clippings dated 18 July 2007 stating that the government of Misamis Oriental has signed an agreement with NGOs and national government agencies for pro-active measures to improve children's health in the province and that similar initiative will also be undertaken in Cagayan de Oro City as stated by the Petitioner; 4. Photocopy of Certificate of Membership issued to the Petitioner by the Philippine Hospital Association of Quezon City on 19 June 2007; EAICTS 5. Photocopy of 2007 Annual Income Tax Return received by the Bureau of Internal Revenue on 07 May 2007; and, 6. Photocopy of 2007 Business License and Mayor's Permit, Makati City. Petitioner submitted its 2007 General Information Sheet and 2006 Financial Statement to prove its intention to continue its registration with the Commission. Petitioner also manifested that it has no intention to violate the law and commits to immediately pay the fines due. On 24 August 2007, Petitioner paid the fine of Php33,000.00, under O.R. No. 05479794, for non/late-filing of the following, on the years indicated hereunder: NOT FILED FILED LATE General Information Sheet 1996 2006 2007 Financial Statements 1996 2005 2006 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 corporation is bound by the said provision of the law and it cannot claim ignorance to excuse it from compliance therewith. The allegation that it did not receive the Order of Revocation dated 20 August 2003 is also without merit, considering that said Order was published on 28 August 2003 in the Philippine Daily Inquirer, a newspaper of general circulation, pursuant to SEC Memorandum Circular No. 4 Series of 2003, which states that in case where the Commission may deem practicable considering the 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 corporations concerned. Further, Petitioner's allegation failed to prove that it is still active despite non-filing of reports, considering that the only submission they made covers only year 2007 and 2008. However, finding the submitted documents sufficient to establish Petitioner's intent to continue as a going concern entity, the Order of the Commission dated 20 August 2003, revoking the Certificate of Registration of COMMITTEE OF GERMAN DOCTORS FOR DEVELOPING COUNTRIES, INC., is hereby SET ASIDE. EHITaS 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 on leave THADDEUS E. VENTURANZA Commissioner Footnotes * Photocopies are compared with the original documents.