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Corazon Mercado, et al. vs. Jesus Sanchez, et al.

SEC-SICD Case No. 12-94-4943 • Securities and Exchange Commission Departments • Securities Investigation and Clearing Department (SICD) • Apr 19, 1995

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[SEC-SICD * CASE NO. 12-94-4943. April 19, 1995.] CORAZON MERCADO, ET AL. , petitioners , vs . JESUS SANCHEZ, ET AL. , respondents . D E C I S I O N This is a petition for mandamus filed by the petitioners for this Office to issue an order directing the respondents to call an annual membership meeting of the Riles-Divisoria Fruit and Vegetable Dealers Association, Inc. (association for brevity) for the election of the association's members of the Board of Trustees. dctai Petitioners, in their petition, allege that they are members as well as members of the Board of Trustees of the Riles-Divisoria Fruit and Vegetable Dealers Association, Inc. Respondents Jesus Sanchez, Leonardo Pagulayan, Senon Aure, Aida Chua and Conrado Cantillan are all members of the Board of Trustees of the association while the other respondents Herminigildo Acido, Tomas Fuggan, Rogelio Aquino and Annie Motio are acting as President, Vice-President, Secretary, Treasurer and Auditor, respectively. Pursuant to Section 2, Article 11 of the association's by-laws, the term of office of the abovenamed respondents acting as officers expired/ended on October 28, 1994. Also under Section 1, Article 1 of the by-laws of the association, the annual meeting of the members of the association shall be held every last Sunday of October, which was October 28, 1994, to elect the members of the Board of Trustees. Despite the expiration of the term of the respondents, as well as the demands made by them and the majority of the members of the association for the respondents to call the annual membership meeting of the association in accordance with the by-laws of the association, the respondents, as members of the Board of Trustees and officers, failed and refused to call and hold the said annual meeting and election of the members of the Board of Trustees and officers of the association in violation of the latter's Articles 1 of Incorporation and by-laws. Also, despite of the notices sent to the respondents for a meeting of the Board of Trustees, the respondents refused and/or failed to attend the said meeting, hence, this petition. Due to the failure of the respondents to file their answer within the reglementary period, upon motion made by the petitioners, the respondents were declared in default per Order, dated March 29, 1995, issued by this Hearing Officer. During the hearing of this case on April 6, 1995, the petitioners presented their lone witness their co-petitioner, Mrs. Corazon Mercado, who affirmed their (petitioners) material allegations in the petition. llcd The sole issue to be resolved in this case is whether or not the herein respondents can be compelled by the petitioners to call an annual membership meeting of the Riles-Divisoria Fruit and Vegetable Dealers Association, Inc. for the election of the members of its Board of Trustees. The unrebutted positive testimony of petitioners' witness, Mrs. Corazon Mercado, affirming the fact that several demands were made both by the herein petitioners and the majority of the members of the association for the respondents to call an annual membership meeting of the association for the election of the association's members of the Board of Trustees compels this Hearing Officer to conclude that the subject demands were indeed made for the respondents to call an annual members meeting of the association for the election of the association's members of the Board of Trustees by the respondents. Considering that the by-laws of the association (more particularly Section 1, Article 1 and Section 2, Article III thereof) provides that the annual meetings of the members of the association shall be held on every last Saturday of October of each year and the term of office of the officers is one year and considering further that, per evidence adduced by the petitioners, the respondents refused and or failed to call the annual membership meeting of the association last October 28, 1994, the last Saturday of October of last year mentioned in the association's by-laws for the holding of the annual membership meeting for the election of the members of the Board of Trustees, this Hearing Officer resolves the aforementioned sole issue in this case in the affirmative. Wherefore, premises considered, judgment is hereby rendered as follows: 1. Ordering the herein respondents to call a special membership meeting of the Riles-Divisoria Fruit and Vegetable Dealers Association, Inc, for the election of the said association's members of the Board of Trustees immediately upon receipt hereof and thereafter to submit to this Office the result of the aforesaid election. SO ORDERED. (SGD.) ROGELIO C. SESCON Hearing Officer

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