Text of Laws and Statutes

PRESIDENTIAL DECREE NO. 902-A - REORGANIZATION OF THE SECURITIES AND EXCHANGE COMMISSION

PRESIDENTIAL  DECREE  NO.  902-A  -  REORGANIZATION  OF THE   SECURITIES   AND   EXCHANGE   COMMISSION   WITH ADDITIONAL  POWERS  AND  PLACING  THE  SAID  AGENCY UNDER   THE   ADMINISTRATIVE   SUPERVISION   OF   THE OFFICE OF THE PRESIDENT

 
Section  5.     In   addition  to  the  regulatory  and  adjudicative functions   of   the   Securities   and   Exchange   Commission   over orporations,   partnerships   and   other   forms   of   associations
registered  with  it  as  expressly  granted  under  existing  laws  and decrees, it shall have original and exclusive jurisdiction to hear and decide cases involving.
 
a)    Devices or schemes employed by or any acts, of the board of directors,   business   associates,   its   officers   or   partnership, amounting   to   fraud   and   misrepresentation   which   may   be detrimental to the interest of the public and/or of the stockholder, partners, members of associations or organizations registered with he Commission;
 
b)     Controversies  arising  out  of  intra-corporate  or  partnership relations,   between   and   among   stockholders,   members,   or associates;  between  any  or  all  of  them  and  the  corporation, partnership   or   association   of   which   they   are   stockholders, embers    or    associates,    respectively;    and    between    such corporation,  partnership  or  association and the state insofar as  it
concerns their individual franchise or right to exist as such entity;

c)     Controversies  in  the  election  or  appointments  of  directors, trustees,  officers  or  managers  of  such  corporations,  partnerships or associations.
 
d) Petitions of corporations, partnerships or associations to be declared in the state of suspension of payments in cases where    the    corporation,    partnership    or    association possesses  sufficient  property  to  cover  all  its  debts  but foresees  the  impossibility  of  meeting  them  when  they
respectively  fall  due  or  in  cases  where  the  corporation, partnership or association has no sufficient assets to cover its   liabilities,   but   is   under   the    management   of   a Rehabilitation  Receiver  or  Management  Committee  created pursuant to this Decree.
 
Section 6.    In  order to effectively exercise such jurisdiction, the Commission      shall      possess      the      following      powers:  xxx
 
c) To appoint one or more receivers of the property, real or personal, which is the subject of the action pending before the Commission in accordance with the pertinent provisions of   the   Rules   of   Court   in   such   other   cases   whenever necessary  in  order  to  preserve  the  rights  of  the  parties-
litigants and/or protect the interest of the investing public and  creditors.  Provided,  however,  That  the  Commission may, in appropriate cases, appoint a Rehabilitation Receiver who  shall  have,  in  addition  to  the  powers  of  a  regular receiver  under  the  provisions  of  the  Rules  of  Court,  such functions and powers as are provided for in the succeeding paragraph    d)    hereof.    Provided,    further,    that    upon
appointment  of  a  management  committee,  rehabilitation receiver, board or body, pursuant to this Decree, all actions for     claims     against     corporations,     partnerships     or associations  under  management  or  receivership  pending before   any   court,   tribunal,   board   or   body   shall   be
suspended accordingly.
 
d) To create and appoint a management committee, board, or  body  upon  petition  or  motu  propio  to  undertake  the management    of    corporations,    partnerships    or    other associations  in  appropriate  cases  when  there  is  imminent danger of dissipation, loss, wastage or destruction of assets or  other  properties  or  paralyzation  of  business  operations of such corporations or entities which may be prejudicial to the  interest  of  minority  stockholders,  parties-litigants  or the general public.
 
The   management   committee   or   rehabilitation   receiver, board or body shall have the power to take custody of and control  over,  all  the  existing  assets  and  property  of  such entities under management; to evaluate the existing assets and     liabilities,     earnings     and     operations     of     such corporations,    partnerships    or    other    associations;    to
determine the best way to salvage and protect the interest of   the   investors   and   creditors;   to   study,   review   and evaluate   the   feasibility   of   continuing   operations   and restructure  and  rehabilitate  such  entities  if  determined  to be  feasible  by  the  Commission.  It  shall  report  and  be
responsible  to  the  Commission  until  dissolved  by  order  of the Commission. Provided,  however,  That the  Commission, may,  on  the  basis  of  the  findings  and  recommendation  of the   management   committee,   or   rehabilitation   receiver, board  or  body,  or  on  its  own  findings,  determine  that  the
continuance in business of such corporation or entity would not be feasible or profitable nor work to the best interest of the stockholders, parties-litigants, creditors, or the general public, order the dissolution of such corporation entity and its     remaining     assets     liquidated     accordingly.     The management committee or rehabilitation receiver, board or body  may  overrule  or  revoke  the  actions  of  the  previous
management and board of directors of the entity or entities under  management  notwithstanding  any  provision  of  law, articles of incorporation or by-laws to the contrary. 

The   management  committee,   or   rehabilitation  receiver, board  or  body  shall  not  be  subject  to  any  action,  claim  or demand for, or in connection with, any act done or omitted to be done by it in good faith in the exercise of its functions, or  in  connection  with  the  exercise  of  its  power  herein
conferred. 


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