Romeo B. Cruz Jr.

Private Corporation Law Jurisdiction of Special Commercial Courts

To implement the provision of Sec. 5.2 of Republic Act No. 8799 (The Securities Regulation Code), and in the interest of a speedy and efficient administration of justice, the Supreme Court promulgated A.M. No. 00-11-03-SC (effective December 15, 2000) designating certain branches of the Regional Trial Court to try and decide cases formerly cognizable by the Securities and Exchange Commission enumerated under Section 5 of P.D. 902-A (SEC Reorganization Act) arising within their respective territorial jurisdiction, to wit: 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 the 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, members 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. Furthermore, the Supreme Court promulgated A.M. No. 03-03-03-SC (effective July 1, 2003), which provides that the RTC Branches previously designated as SEC Courts through resolutions issued in A.M. No. 00-11-03-SC, shall now be called Special Commercial Courts, to try and decide cases involving Violations of Intellectual Property Rights which fall within their jurisdiction, and those cases formerly cognizable by the SEC pursuant to P.D. 902A, which are: 1)Petitions for Rehabilitation of corporations, partnerships, and associations, 2) Derivative suits, and 3) Inspection of Corporate Books. In relation to the transfer of jurisdiction, the Supreme Court promulgated A.M. No. 01-2-04 (Interim Rules of Procedure for intra-Corporate Controveries) and A.M. No. 00-8-10-SC (Rules of Procedure on Corporate Rehabilitation) as the rules that shall govern the procedure to be observed in civil cases mentioned above. Finally, the enactment of FRIA Law (R.A. No. 10142- Financial Rehabilitation and Insolvency Act) in June 30, 2010, which repealed the Insolvency Law (Act No. 1956) enables businesses under sole-proprietorship to file Petition for Rehabilitation, which in the past is a remedy available only to partnership and corporation, is also cognizable by Special Commercial Courts.