Interim Rules of Procedure for Intra-Corporate Controversies

Section 1

The provisions of this rule shall apply to election contests in stock and non-stock corporations.

Sec 2

An election contest refers to any controversy or dispute involving title or claim to any elective office in a stock or non-stock corporation, the validation of proxies, the manner and validity of elections, and the qualifications of candidates, including the proclamation of winners, to the office of director, trustee or other officer directly elected by the stockholders in a close corporation or by members of a non-stock corporation where the articles of incorporation or by-laws so provide.

Sec 3

In addition to the requirements in section 4, Rule 2 of these Rules, the complaint in an election contest must state the following: The case was filed within fifteen (15) days from the date of the election if the by-laws of the corporation do not provide for a procedure for resolution of the controversy, or within fifteen (15) days from the resolution of the controversy by the corporation as provided in its by-laws; and The plaintiff has exhausted all intra-corporate remedies in election cases as provided for in the by-laws of the corporation.

Sec 4

Within two (2) days from the filing of the complaint, the court, upon a consideration of the allegations thereof, may dismiss the complaint outright if it is not sufficient in form and substance, or, if it is sufficient, order the issuance of summons which shall be served, together with a copy of the complaint, on the defendant within two (2) days from its issuance.

Sec 5

The defendant shall file his answer to the complaint, serving a copy thereof on the plaintiff, within ten (10) days from service of summons and the complaint. The answer shall contain the matters required in section 6, Rule 2 of these Rules.

Sec 6

The parties shall attach to the complaint and answer the affidavits of witnesses, documentary and other evidence in support thereof, if any. Acting on the Memorandum of the Committee on SEC Cases submitting for this Court’s consideration and approval the Proposed Interim Rules of Procedure for Intra-Corporate Controversies, the Court Resolved to APPROVE the same. The Interim Rules shall take effect on April 1, 2001 following its publication in two (2) newspapers of general circulation. March 13, 2001, Manila. Revised Corporation Code of the Philippines