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Luisito Oinal, et al. vs. Tolentino Bunag, et al.

SEC-SICD Case No. 04-97-5616 • Securities and Exchange Commission Departments • Securities Investigation and Clearing Department (SICD) • Dec 19, 1997

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[SEC-SICD * CASE NO. 04-97-5616. December 19, 1997.] LUISITO OINAL, ET AL. , petitioners , vs . TOLENTINO BUNAG, ET AL. , respondents . D E C I S I O N This is a case for declaration of nullity of the alleged election conducted on March 15, 1997, by respondents Tolentino Bunag, Constantino Lozano, Leo De Jose and Modesto Lansaderas and others. prcd In their petition, petitioners alleged that they were members and officers of Camarin Administration Tricycle Operators Drivers Association, Inc.; that on March 15, 1997, the respondents led by Mr. Tolentino Bunag held an election to which they declared themselves as new set of officers of said association; that said election was held contrary to the provisions of their Constitution and By-Laws as the election should be held every December of the year; that until and unless the said provision of the By-Laws is amended, the election conducted is null and void; that in view of the illegal election held by the respondents, the general membership was put in chaos; that the respondents clothed themselves with the authority to collect fees and dues from other members and new applicants of the association, to the prejudice not only of the petitioners and other officers but also of the entire membership. Herein respondents were declared as in default for failure to appear and to submit their preliminary conference brief, per Order issued by this Hearing Officer dated November 19, 1997. Petitioners presented their evidence both oral and documentary and thereafter the case was deemed submitted for decision. The principal issue to be resolved here is whether or not the election held by the respondents on March 15, 1997 was contrary to Constitution and By-Laws and, therefore, is null and void On the question of whether or not the election held by the respondents on March 15, 1997 contravenes or is contrary to the provision of the Constitution and By-Laws of the CAADTODA, the answer must be in the positive. Evidence on record shows that the last election held prior to the March 15, 1997 election was on November 17, 1996 pursuant to SEC Case No. 03-96-5281 entitled Henry Andrada, et al. vs. Arnel Aducayen, et al. Under the general practice of the association, the election is being held every second week of December of each year as every officer is to serve office for one year. In view of the said election on November 17, 1996, it was agreed upon that the new election will be in the month of December of the following year. Evidence also showed that this Office was furnished the list of officers duly elected on the said November 17, 1996 election. Herein petitioners were elected as President as members of the Board of Directors. Respondent Tolentino Bunag was also elected as member of the Board of Directors. However, on March 15, 1997 respondent Bunag together with the other respondents conducted another election to which they declared themselves as new officers of the association. This office was also furnished of the copy of the said list of officers elected. There were evidence submitted that respondents since then begun collecting fees and dues for membership from some other applicants of the association. Under the existing By-Laws of the CAADTODA Article IV OFFICER. It specifically provides: "SECTION 1. The association shall have a President, a Vice President, a Secretary Treasurer, an Auditor, a Business Manager, a Public Relations Officer and six (6) Sgt. at-arms who shall hold office for a period of one year until their successors shall have been elected and qualified." When the election was held on March 15, 1997 by the respondent, the said provision of the By-Laws of CAADTODA is still existing, no amendment thereto has been made. Hence, any act made in contravention thereto is null and void for being contrary to the existing By-Laws of the association. Hence, the election of the respondents held on March 15, 1997 was null and void for being contrary to the existing By-Laws of the association. The petitioner elected as President and as member of the Board of Directors must be allowed to serve for one year. In order to protect their rights from these illegal acts of the respondents, petitioners were constrained to hire the services of a counsel to which they should be awarded the amount of P5,000.00 as attorney's fees. Further, respondents are hereby ordered to turn over whatever amount they have collected from the members of the CAADTODA after proper accounting has been made. WHEREFORE, premises considered, judgment is hereby rendered for the petitioners and as against the respondents declaring null and void the election held by the respondents on March 15, 1997, and further, this Office hereby orders the respondents. 1. to pay the petitioners the amount of P5,000.00 as attorney's fees. 2. to turn over to the petitioners whatever amount collected from other members new or old after proper accounting thereon has been made. cdlex SO ORDERED. (SGD.) SILVINO T. PAMPILO, JR. Hearing Officer

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