(5) Philippine Communications Satellite Corporation vs. Sandiganbayan, 5th Division 759 SCRA 242 , J - G.R No 203023 PHILIPPINE COMMUNICATIONS SATELLITE

(5) Philippine Communications Satellite Corporation vs. Sandiganbayan, 5th Division 759 SCRA 242 , J

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G.R. No. 203023. June 17, 2015. * PHILIPPINE COMMUNICATIONS SATELLITE CORPORATION and PHILCOMSAT HOLDINGS CORPORATION, petitioners, vs. SANDIGANBAYAN, 5 th DIVISION and PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT, respondents. Mercantile Law; Corporations; Intra-corporate Controversies; To determine if a case involves an intra-corporate controversy, the courts have applied two (2) tests: the relationship test and the nature of the controversy test. ·To determine if a case involves an intra- corporate controversy, the courts have applied two tests: the relationship test and the nature of the controversy test . Under the relationship test , the existence of any of the following relationships makes the conflict intra-corporate: (1) between the corporation, partnership or association and the public; (2) between the corporation, partnership or association and the State insofar as its franchise, permit or license to operate is concerned; (3) between the corporation, partnership or association and its stockholders, partners, members or officers; and (4) among the stockholders, partners or associates themselves. On the other hand, the nature of the controversy test dictates that „the controversy must not only be rooted in the existence of an intra-corporate relationship, but must as well pertain to the enforcement of the partiesÊ correlative rights and obligations under the Corporation Code and the internal and intra-corporate regulatory rules of the corporation.‰ A combined application of the relationship test and the nature of the controversy test has become the norm in determining whether a case is an intra- corporate controversy, to be „heard and decided by the [b]ranches of the RTC specifically designated by the Court to try and decide such cases.‰ Same; Same; Same; Regional Trial Courts; Section 5 of Presidential Decree (PD) No. 902-A conferred original and exclusive jurisdiction over intra-corporate disputes on the Securities and Exchange Commission (SEC). However, Section 5.2 of Republic Act (RA) No. 8799, transferred the jurisdiction over such cases to courts
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of general _______________ * SECOND DIVISION. 243 VOL. 759, JUNE 17, 2015 243 Philippine Communications Satellite Corporation vs. Sandiganbayan, 5th Division jurisdiction, or the appropriate Regional Trial Court (RTC). · As such, it is clear that the jurisdiction lies with the regular courts and not with the Sandiganbayan . Section 5 of Presidential Decree No. 902-A conferred original and exclusive jurisdiction over intra- corporate disputes on the SEC. However, Section 5.2 of R.A. 8799, transferred the jurisdiction over such cases to courts of general jurisdiction, or the appropriate RTC. Petitioners, however, further argue that the case must be decided by the Sandiganbayan because the RTC is coequal to the PCGG and therefore would have no authority to issue an order to the latter.
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