In The Matter of Camarines Norte Photographers' Association

[SEC-SICD * CASE NO. 3797. February 26, 1991.] IN THE MATTER OF CAMARINES NORTE PHOTOGRAPHERS' ASSOCIATION, INC., PROSECUTION AND ENFORCEMENT DEPARTMENT (PED), Securities and Exchange Commission (SEC) through the relation of Jose Cereno for himself and other photographers in Camarines Norte , petitioners , vs . CAMARINES NORTE PHOTOGRAPHERS' ASSOCIATION, INC., and ANTONIO VELASCO , respondents . D E C I S I O N In its petition, the Prosecution and Enforcement Department (PED) of the Securities and Exchange Commission upon the relation of Jose Cereno, for himself and for other photographers in Camarines Norte, seeks the revocation of the certificates of registration of Camarines Norte Photographers' Association, Inc., (CNPAI, for brevity) under Sec. 121, Batas Pambansa Blg. 68, also known as the Corporation Code of the Philippines, in relation to Sec. 6(i), 1 and 2, P.D. 902-A, as amended, with temporary restraining order/writ of preliminary injunction; that respondent CNPAI is a non-stock corporation, registered on 26 February 1988; that the respondent CNPAI's name was first used in the program of the association at its first induction of officers on 3 September 1966, with a socio-civic project of sponsoring the Search for Miss Photography in Camarines Norte, consisting of 60 members and respondent Antonio Velasco was the business manager, that the name of CNPAI had been continuously used by the relator Cereno and other photographers once every two (2) years since 1966 and was sponsoring such project on 21 June 1990; that respondent Velasco deceived some members of the association to sign documents for registration with this Commission and fraudulently obtained a Certificate of Registration No. 148802 on 26 February 1988; that the list of members submitted to this Commission carried only 11 members out of the one hundred true members of the association, five of whom are not even real members thereof; that the fact of incorporation of respondent CNPAI was withheld by respondent Velasco, who used the name of the corporation to seek funds and donation by sponsoring the search for Miss Photography '90 in Camarines Norte on 16 June 1990, in competition with the project of relator Cereno, and other photographers creating confusion in the public's mind. prcd On 8 June 1990, a temporary restraining order was issued by this Commission enjoining respondents, their agents or any other person acting in their behalf to desist from seeking funds, donation and entries to the search for Miss Photography '90 scheduled on 16 June 1990 or its resetting. On the 13th June 1990 hearing of the incident of injunctive relief, parties agreed to amicably settle and to hold in abeyance the hearing on the injunctive relief. Parties agreed to have an election on 19 June 1990 in Camarines Norte for the election of the officers of the corporation, to abide with the election results and the winner thereof shall be the party to hold the Miss Photography contest for the year 1990. In the hearing of 6 June 1990, respondent Velasco failed to appear and to file a responsive pleading to the petition and was declared in default. Petitioner filed contempt charges against respondent Velasco after he violated the restraining order issued by this Commission by staging a renamed contest. In the hearing of the motion for contempt, respondent Velasco, despite notice and liberal considerations granted by this Hearing Officer, did not appear and refused to defend his person of the penal charges filed against him. Hearings were conducted. both testimonial and documentary evidence were presented on the incident of the injunctive relief and contempt charges. The evidence presented in the incident prayed for were also adopted on the merits of the case. Petitioner upon relation of Jose Cereno and other photographers proved and clearly established their entitlement to the relief prayed for. ACCORDINGLY, judgment is hereby rendered in favor of the petitioners and against respondents as follows: a. Revoking the certificate of registration of respondent Camarines Norte Photographers' Association; b. Ordering the respondents their agents and/or representatives to stop and desist from using the corporate name of Camarines Norte Photographers' Association, Inc.; and c. Respondent Velasco is hereby found guilty of indirect contempt and fined ONE THOUSAND (P1,000.00) PESOS. prcd Let a copy of this Decision be furnished the Corporate and Legal Department and the Records Division of the Administrative and Finance Department of this Commission for their information and guidance. No Pronouncement as to cost. SO ORDERED. (SGD.) YSOBEL S. YASAY-MURILLO Hearing Officer