Midas Hotel, or the old Hyatt Hotel in Pasay City (Metro Manila), will not lose its corporate life after all.
The new lease came after the Court of Appeals (CA) stood pat on its decision to extend the corporate term of Hotel Enterprises of the Philippines Inc. (HEPI), a business group managing operations of Midas Hotel.
In a decision penned by Associate Justice Danton Bueser, the CA’s Former Special Second Division denied a motion for reconsideration filed by Securities and Exchange Commission (SEC) Chairman Teresita Herbosa and Commissioners Juanita Cueto, Antonieta Ibe and Manuel Huberto Gaite praying for reversal of the CA’s ruling on December 2, 2014.
Eco Leisure and Hospitality Holdings Inc. and Illido Management Corporation each own approximately 50 percent of HEPI’s outstanding capital stock.
Together, they managed the operations of Midas Hotel.
On December 17, 2012, HEPI called a special meeting of stockholders and members of the board of directors.
During the meeting, amendment of Articles of Incorporation and By-Laws for the purpose of extending the corporate term was unanimously approved and duly certified and the same was filed with the SEC on December 26, 2012 for the same purpose.
The SEC did not accept and process the application because of expiration of HEPI’s corporate term on July 30, 2012 and its en banc affirmed the denial of the application, prompting the firm to seek redress with the appellate court.
In its December 2, 2014 ruling, the CA ruled in favor of HEPI as it directed the SEC to give due course to its application aiming at extending its corporate term.
The ruling prompted SEC officials to move for reconsideration.
On June 23, 2015, the CA, however, affirmed its own verdict.
“Wherefore, this court, after meticulous study of the arguments set forth in the [motion for reconsideration]filed by respondents, finds no cogent reason to revise, amend, much less reverse, the decision promulgated on December 2, 2014. The [motion]is thus denied,” it said.
“In giving due course to HEPI’s application to amend its Articles of Incorporation, we gave credence to the certification given by the Corporate Secretary, Atty. Ronald Ang, that on February 24, 2012, a joint special meeting of the Board of Directors and Stockholders of HEPI was held,” the CA added.
Concurring with the verdict were Associate Justices Remedios Salazar-Fernando and Socorro Inting.