CA reverses SEC order on The Medical City’s control | Inquirer News
Close  

CA reverses SEC order on The Medical City’s control

APPELLATE COURT SAYS RTC HAVE JURISDICTION INSTEAD
/ 08:41 PM February 18, 2021

MANILA, Philippines — The Court of Appeals (CA) has overturned a Securities and Exchange Commission (SEC) order for a major hospital chain’s current majority stockholders to divest their shares and yield management to the previous group handling the medical facility.

In an order dated last February 11, CA said that the SEC cannot order the current board and management of The Medical City to step down from their post, because the commission does not have the power to order the divesting of shares.

ADVERTISEMENT

Furthermore, CA noted that the corporate conflict that the hospital is going through is outside its control and therefore comes under the jurisdiction of the regional trial courts.

SEC in 2020 voided the takeover of the hospital’s board by current chair Jose Xavier Gonzales and his group from the previous management in 2013.  According to the order from SEC, the hospital should restore the composition of its 2013 board.

FEATURED STORIES

In response, the current management said that such an order would lead to turmoil, rumors, and instability which may not only be bad for the hospital but for its brand of service as well, especially amid the COVID-19 pandemic.

With the CA order, Gonzales remains as The Medical City chairperson while the management led by Dr. Eugenio Jose Ramos stays in place.

SEC initially stated that the manner in which the current management took the company from the previous board was fraudulent, although Gonzales’ legal counsel consistently disputed such issues.

READ: Medical City shareholders prepare for another showdown in court 

READ: Gonzales seeks reversal of SEC decision on TMC 

ac

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.
Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: CA, corporate dispute, Court of Appeals, COVID-19 pandemic, divesting shares, hospital chain, Philippine news updates, SEC, Securities and Exchange Commission, The Medical City
For feedback, complaints, or inquiries, contact us.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and
acknowledge that I have read the Privacy Policy.



© Copyright 1997-2022 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.