In the Matter of San Lorenzo Ruiz Center of Studies and Schools, Inc.

January 16, 2009 SEC EN BANC CASE NO. 11-08-0556 IN THE MATTER OF SAN LORENZO RUIZ CENTER OF STUDIES AND SCHOOLS, INC. SEC REGISTRATION NO. 0000186548 FOR : Setting Aside the Order of Revocation of the Certificate of Registration O R D E R Petitioner, SAN LORENZO RUIZ CENTER OF STUDIES AND SCHOOLS, INC. (FORMERLY: SAN LORENZO RUIZ CHILD STUDY CENTER AND SPECIAL STUDIES INCORPORATED), is a non-stock corporation registered with the Commission on 4 February 1991 under SEC Registration No. 0000186548, with principal office at Villa de San Lorenzo, St. Dominic Corinthian Annex, Dolores, City of San Fernando, Pampanga, organized to operate an educational institution or learning center which shall provide pre-school, elementary, high school, collegiate and graduate levels, as stated in its Articles of Incorporation. SHECcD On 29 September 2003, its Certificate of Registration was revoked by the Commission, by virtue of SEC Order dated 20 August 2003, published on 28 August 2003 in the Philippine Daily Inquirer, for non-filing of reports. Petitioner now prays for the setting aside of the Order of Revocation dated 20 August 2003, on the following grounds: 1. that Petitioner's officers overlooked the submission of the reportorial requirements of the Commission as it has been busy in the preparation for its accreditation with the Philippine Accrediting Association of Schools, Colleges and Universities (PAASCU), and in dealing with the decline in the number of its enrollees; and 2. that Petitioner intends to continue its operations. In support of its Petition, Petitioner submitted the following documents: 1 1. Trustees' Certificate dated 28 July 2008, certifying that at the special meeting, held on 12 July 2008, at its principal office at St. Dominic Dolores, City of San Fernando, Pampanga, at which a quorum was present, the resolution allowing the filing of Petition to Set Aside Order of Revocation was approved; 2. Photocopies of Mayor's permit for the years 1996 to 2000, 2002 to 2008, and Official Receipt No. 4480630 for 2001, Municipality of San Fernando, Pampanga; 3. Photocopies of Government Recognition issued by the Department of Education, Culture and Sports, granting authority to the Petitioner to provide Pre-Elementary (1992), Elementary (1995) and Four-year Secondary (2001) Courses; 4. A sample of Petitioner's Student Handbook and Brochures; 5. Copies of Petitioner's School newspaper for the years covering 1998 to 2000 and 2003 to 2008; 6. Pictures of Petitioner's various programs and activities for the years 2000 to 2007. Petitioner submitted its 2008 General Information Sheet and 2008 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 as due. ScCDET Upon evaluation of the submitted documents vis--vis the records on file with the Commission, it appears that the Petitioner violated Section 48 of the Corporation Code of the Philippines (the Code), on the fiscal year of the corporation (June 1 to May 31, as stated in its 2008 Financial Statements) without properly amending its By-Laws (which states, January 1 to December 31). Thus, a fine of Php5,000.00 2 was imposed on the Petitioner, pursuant to Section 144 of the Code. On 18 November 2008, Petitioner paid the fine of P83,750.00, 3 under Official Receipt No. 0231723, for non/late filing of the following, on the years indicated hereunder: REQUIREMENTS NOT FILED FILED LATE General Information Sheet 1996-2006 2007 Financial Statements 1996-2006 WHEREFORE, Petitioner's allegation that its officers were preparing for the PAASCU accreditation and dealing with the declining number of enrollees 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 negligence nor business decline to excuse it from compliance therewith. However, finding the submitted documents sufficient to establish Petitioner's operations and its intent to continue as a juridical entity, the Order of the Commission dated 20 August 2003, revoking the Certificate of Registration of the SAN LORENZO RUIZ CENTER OF STUDIES AND SCHOOLS, INC., is hereby SET ASIDE. Further, Petitioner is hereby directed to file its application for the amendment of its By-Laws, changing its fiscal year from January 1 to December 31 to June 1 to May 31 within thirty (30) days from date of receipt of this Order. Petitioner is warned that non-compliance therewith shall constitute a continuous violation of Section 48 the Code. ICAcaH SO ORDERED. Mandaluyong City, January 16, 2009. (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. Photocopies are faithful reproductions of the originals of the documents. 2. Included in the Official Receipt. HTCESI 3. Fine for violation of Section 48 included.