Cirtek Holdings legal proceedings continue on alleged RCC violation
CIRTEK Holdings Philippines Corp. has filed a memorandum in lieu of appellant’s brief for the petition for declaratory relief before the Court of Appeals on Oct. 12.
According to the company’s disclosure to the Philippine Stock Exchange, “the case is still pending resolution.”
In Feb. 17, 2020, complainants — former director of Cirtek Rafael Estrada and Otilio Vicente F. Arellano II — filed a joint complaint-affidavit for the company’s alleged violation of Section 73 in relation to Section 161 of the Revised Corporation Code (RCC).
Section 73 of the RCC states that “every corporation shall keep and carefully preserve at its principal office all information relating to the corporation.”
The complainants previously demanded to inspect the company’s records, “including a documented blow-by-blow account of corporate decisions, transactions, accounting judgments and estimates,” Cirtek Holdings said.
On April 12, 2021, the accused filed an amended omnibus motion with the Regional Trial Court (RTC) Branch 153 which seeks to dismiss the information, withhold the issuance of a warrant of arrest — if already issued — and suspend the proceedings due to prejudicial question.
Although the RTC Branch 153 dismissed the petition for declaratory relief in July 5, 2021, it has also suspended the criminal proceedings “by reason of prejudicial question.”
On Sept. 29, respondent-appellants, which include the directors and officers of the corporation, filed a motion for reconsideration, while the Department of Justice dismissed the criminal complaint “for lack of probable cause.”
“As of date, the criminal proceedings remain suspended, and the case has no material impact to the business or operations of the company,” Cirtek Holdings said.
On the stock market on Tuesday, shares in Cirtek Holdings lost 2 centavos or 0.78% to P2.56 apiece. — Justine Irish D. Tabile
