In re Francisco Infante Memorial High School, Inc.

October 31, 2008 SEC EN BANC CASE NO. 10-08-0524 IN THE MATTER OF FRANCISCO INFANTE MEMORIAL HIGH SCHOOL, INC. SEC REGISTRATION NO. 0000039170 FOR : Setting Aside the Order of Revocation of the Certificate of Registration O R D E R Petitioner, FRANCISCO INFANTE MEMORIAL HIGH SCHOOL, INC. is a non-stock corporation registered with the Commission on 27 August 1969 under SEC Registration No. 0000039170, with principal office at Valladolid, Negros Occidental, organized to operate an educational institution or learning center which shall provide secondary and vocational courses, as stated in its Articles of Incorporation. STaHIC On 02 July 2003, its Certificate of Registration was revoked by the Commission, by virtue of SEC Order dated 27 May 2003, published on 02 June 2003 in the Philippine Daily Inquirer, for non-filing of reports. Petitioner now prays for the setting aside of the Order of Revocation dated 27 May 2003, on the following grounds: 1. that for a period of five years, since year 2000, Petitioner's school administration changed the principal yearly and the independent accountant abandoned the school without informing the administration of its obligation to file the Commission's reportorial requirements; 2. that Petitioner has been in continuous operation since its incorporation to present; and 3. that Petitioner intends to continue its operations. In support of its Petition, Petitioner submitted the following documents: 1 1. Trustees' Certificate dated 13 June 2008, certifying that at the special meeting, held on same date, at its principal office in Rizal St. Valladolid, Negros Occidental, at which a quorum was present, the resolution allowing the filing of Petition to Set Aside Order of Revocation was unanimously approved; 2. Photocopy of Mayor's permit issued on 23 July 2008 for the school year 2008-2009; 3. Photocopy of Summary of Enrollment submitted to Department of Education-Division of Negros Occidental on June 26, 2008; 4. Photocopy of an acknowledgement letter issued by the Department of Education Region VI-Western Visayas for the application of tuition and other school fees with attached schedule; 5. Photocopy of Bureau of Internal Revenue form 1702-Annual Income Tax Return for fiscal year ending April 2007 received by the revenue officer; aEHASI 6. Photocopies of various official receipts for the period covering April to July 2008 issued by Negros Occidental Electric Cooperative, Inc. (NOCECO) for its power consumption; 7. Photocopies of various Special Orders covering 2004-2007 issued by the Department of Education Region VI-Western Visayas Division of Negros Occidental. Petitioner submitted its 2008 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 any SEC rules and regulations and commits to immediately pay the fines due. Upon evaluation of the submitted documents vis--vis the records on file with the Commission, it appears that the Petitioner violated Section 46 of the Corporation Code of the Philippines (the Code) by not filing its By-Laws within the prescribed period. Thus, a fine of Php500.00 shall be imposed on the Petitioner, pursuant to Section 144 of the Code. On 19 August 2008, Petitioner paid the fine of P57,500.00, the amount assessed by Iloilo Extension Office of the Commission, under O.R. No. 5519267, for non/late filing/registration of the following, on the years indicated hereunder: NOTED DEFICIENCIES YEARS COVERED REQUIREMENTS NOT FILED FILED LATE General Information Sheet 1996-2002; 2004-2007 2003; 2008 Financial Statements 1996; 1998-2006 1997 Membership Book Registered late WHEREFORE, Petitioner's allegation that is has no knowledge of the reportorial requirements of 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. Petitioner is bound by the said provision of the law and it cannot claim ignorance to excuse it from compliance therewith. However, finding the submitted documents sufficient to establish the Petitioner's continuous operations since 2004 to present and its intent to continue as a going concern entity, the Order of the Commission dated 27 May 2003, revoking the Certificate of Registration of the FRANCISCO INFANTE MEMORIAL HIGH SCHOOL, INC., is hereby SET ASIDE. Further, the Petitioner is hereby directed to file its By-Laws with the Commission, and pay the corresponding penalty within thirty (30) days from the date of receipt of this Order. The petitioner is warned that non-compliance therewith shall constitute a continuous violation of Section 46 of the Corporation Code. ScAIaT 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 1. Photocopies are compared with original documents.