Mr. Dialoson A. Amil

January 8, 1996 Mr. Dialoson A. Amil Cotabato Maritime Academy Macapagal St. Rosary Heights Cotabato City S i r : This refers to your letter dated December 18, 1995 requesting this Commission to nullify the Orders dated October 20 and October 27, 1995 issued by Atty. Manolo T. Flores, SEC Hearing Officer, Davao City for alleged gross defiance of due process of law amounting to lack of jurisdiction, to confirm the elections of the Board of Trustees of CMI, Inc. held on October 21, 1995, and to inhibit and prohibit the CHED-CMI, Inc. Management Committee. LexLib Please be advised that any motion for reconsideration/appeal on decisions of SEC Hearing Officers on cases filed with the Commission pursuant to P.D. 902-A, as amended, may be allowed by following the procedure laid down under the SEC Revised Rules of Procedure .You may therefore seek advise on how to go about it from the Officer-In-Charge of our Davao Extension who is in a better position to know the actual facts and status of the case referred to in your letter. Relative to your request to require the CMI, Inc. to submit school reports on its operational activities, please be informed that the primary jurisdiction of the Securities and Exchange Commission which is that of supervision and control over corporations emanates from its authority to enforce and implement the Corporation Code. In cases where a government agency regulates the operation of certain type of corporation by virtue of a special law, that agency has the primary jurisdiction over the same. Under B.P. Blg. 232, otherwise known as the Education Act of 1982, it is the duty and function of the Department of Education and Culture (DECS) to regulate and supervise business activities and operations of educational institution so as to protect the interest of the public, to execute the provisions therein and to see to it that violations thereof are properly dealt with or punished. Thus, matters that pertain to violations of the Educational Act should be referred to the DECS for settlement. The SEC's supervision over educational institutions is limited only to matters involving application and enforcement of the provisions of the Corporation Code. Under said Code, the Commission has the power to require educational corporations to submit annual financial statements of its assets and liabilities and general information sheet reflecting the report of annual election of directors and officers and such other corporate information. As to whether or not said corporation has complied with the foregoing SEC reportorial requirements, you may directly communicate and inquire from our Davao Extension Office. Take note that violations for non-filing of said reports are subject to penalties prescribed by SEC rules and regulations on the matter. LexLib Very truly yours, (SGD.) FE ELOISA C. GLORIA Associate Commissioner