Securities and Exchange Commission(SEC)

June 1, 2023 Dear Ninebeth Padojinog, Greetings! Thank you for your request dated May 25, 2023 02:48:06 AM under Executive Order No. 2 (s. 2016) on Freedom of Information in the Executive Branch. Based on your request, you are requesting assistance regarding the charging of unjustifiable condominium association dues. On this, we regret to inform you that the issue on the imposition of association dues is an intra-corporate controversy defined as “a suit arising from intra-corporate relations or between or among stockholders or between any or all of them and the corporation” (Strategic Alliance Development Corporation v. Star Infrastructure Development Corporation, et al, G.R. No. 187872, November 17, 2010.) As held in the case of San Jose and Angcao v. Ozamiz (G.R No. 190590, July 12, 2017), there are two (2) to determine the existence of an intra-corporate controversy: the relationship test: when the conflict is between (a) the corporation and the public; (b) the corporation and the State in so far as their franchise, permit or license to operate is concerned; (c) the corporation and its stockholders, partners, members, or officers; and (d) among the stockholders, partners, or associates themselves; and the nature of the controversy test when the controversy is not only rooted in the existence of an intra-corporate relationship, but also in the enforcement of the parties' correlative rights and obligations under the Corporation Code and the internal and intra-corporate regulatory rules of the corporation. Your concern suffices the two tests. First, the controversy arises between members (unit owners) and the corporation (Royal Garden Residences). Second, the controversy relates to your rights and obligations as a member of the corporation. With this, we regret to inform you that since your concern is an intra-corporate corporate controversy, the Commission does not have any jurisdiction to take cognizance of your concern. The jurisdiction to try, hear, and decide cases involving intra-corporate disputes was already transferred with the regional trial courts (Section 5.2 of the Securities Regulation Code). We hope that we are able to answer your concern satisfactorily. If you are unhappy with this response to your FOI request, you may ask us to carry out an internal review of the response by writing to Karen F. Lazaro, OGC Administrative Officer V . Your review request should explain why you are dissatisfied with this response, and should be made within 15 calendar days from the date when you received this letter. We will complete the review and tell you the result within 30 calendar days from the date when we receive your review request. If you are not satisfied with the result of the review, you then have the right to appeal to the Office of the President under Administrative Order No. 22 (s. 2011). Thank you. Respectfully, Romuald Padilla FOI Receiving Officer