This case has been cited 1 times or more.
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2006-01-27 |
CALLEJO, SR., J. |
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| SO ORDERED.[51] The CA ruled that respondents failed to prove a requirement for the creation of a management committee under Section 1, Rule 9 of the Interim Rules: that there was imminent danger of massive dissipation, loss, wastage or destruction of assets and other properties of the corporation. The appellate court declared that other than the bare allegations of Sy Chim and Felicidad Chan Sy that they could not protect their interests because of dissention among themselves on the one hand, and members of the board of directors on the other, they failed to show that the business operations of the corporation were paralyzed. The CA emphasized that the creation of a management committee is for the benefit of all the interested parties, not exclusively for the benefit of the party at whose instance it is to be created. The appellate court stated that a simple turn over of pertinent receipts would facilitate the accounting sought for, without resorting to the creation of a management committee; the accuracy of the validity of the accounting report made as basis of the complaint for accounting and damages should then be validated during trial on the merits. Citing Jacinto v. First Women's Credit Corporation,[52] the CA ruled that the trial court abused its discretion amounting to excess of jurisdiction in ordering the creation of a management committee pendente lite. | |||||