Geralda Saboriendo vs. Chen Yung Wei

[SEC-SICD * CASE NO. 2942. February 5, 1987.] PETITION FOR ACCOUNTING GERALDA SABORIENDO , petitioner , vs . CHEN YUNG WEI , respondent . D E C I S I O N Submitted for decision is SEC Case No. 002942 entitled "Geralda Saboriendo, petitioner, vs. Chen Yung Wei, respondent" which was filed with this Commission on January 27, 1986. LibLex Petitioner alleges the following, among others: that petitioner is an incorporator and director of Town Trading, Inc. (hereafter referred to as the "corporation") which is a corporation duly organized and existing under and by virtue of the laws of the Republic of the Philippines while respondent is the president thereof; that the corporation has assets with a book value of P170,393.75 and an on-going business with or business volume in terms of goods manufactured and sold averaging P366,000.00 as of December, 1958 as stated in the 1958 financial statement of the corporation; that respondent, as President, which to file their answer. On July 31, 1986, counsel for petitioner filed an Urgent Motion For Judgment On The Pleadings which was denied by this Commission for being improper. On September 4, 1986, another counsel for petitioner filed a Formal Appearance Of Counsel And Motion To Declare Respondent In Default With Prayer To Set The Presentation Of Evidence Ex-parte which was granted by this Commission in its Order dated September 8, 1986. In the subsequent hearings, petitioner testified that she and her husband set up the corporation and were the ones who put up the capital of the corporation. She also testified that they included respondent in the corporation since he was a good friend of her husband and thus having complete trust on him, he was chosen by them to manage the corporation. However, the said trust seems to have been misplaced as they later found out that the assets and business of the corporation disappeared while respondent was later found by them to be operating another corporation with the same business together with a former sewer of theirs. There being no evidence to the contrary, it is crystal clear that it is respondent's duty, as director and president of the corporation to render an accounting to the corporation. The very nature of the function of respondent as Director and President of the corporation necessitates his exerting to the utmost to fulfill his fiduciary duty to the corporation. prcd WHEREFORE, respondent is hereby ordered: (1) to make and submit an accounting of the assets and business of Town Trading, Inc. collate and, (2) to return to Town Trading, Inc. so much of the properties and assets traced as originating. SO ORDERED. (SGD.) EDMUNDO R. FALGUI Hearing Officer