G.R. NO. 162277 - CORAZON SUYAT, PACITA UY TAN, RODRIGO DE LA ROSA, RUBEN DE LA ROSA, AND BAGUIO GARDEN HOTEL- APARTMENTS, INC., VS. HON. ANNIE GONZALES-TESORO, DIRECTOR OF THE SECURITIES AND EXCHANGE COMMISSION, BAGUIO EXTENSION OFFICE; ESTER LAU; AND SHERIFF ROMEO R. FLORENDO,*.D E C I S I O N - S

Ruling

WHEREFORE, the petition is hereby DENIED for lack of merit." [4] The assailed Resolution denied reconsideration. The Facts The CA narrated the relevant facts as follows: "Herein [individual] petitioners are officers of Baguio Garden Hotel Apartments, Inc. They were charged before the Securities and Exchange Commission (SEC) for the misrepresentation and irregularities appearing in the financial statements of the corporation. "On January 15, 1998, the Securities and Exchange Commission, Baguio Extension Office, rendered a decision containing the following dispositive portion: 'WHEREFORE, premises considered, judgment is hereby rendered as follows: Ordering [individual petitioners] to pay to the corporation jointly and solidarily the unaccounted cash of P519,488.12 shown in the financial records of 1995; to pay back the corporation the amount of P378,123.89[,] which they disbursed as a loan and reflected as cash outlay although not paid by the corporation[,] as shown in the Cash Flow Statement of 1994; and the deficit of Retainer Earnings of 1994 in the amount of P639,057.83; Ordering [petitioner] Corazon Suyat to pay back the corporation her cash advances and unpaid rentals in the total amount of P149,403; [petitioner] Pacita Uy Tan to pay back the corporation her cash advances and unpaid rentals in the total amount of P301,281.50; [petitioners] Rodrigo de la Rosa and Ruben de la Rosa to pay back to the corporation their cash advances of P20,000; Ordering [individual petitioners] to stop paying themselves share (sic) in the profits in the form of cash advances or defaulting themselves in the payment of rentals due to the corporation, and, instead, to make the proper accounting of the finances of the corporation for the years 1994, 1995, 1996, and 1997[,] inclusive of the aforecited ordered payments, through the assistance of a duly licensed Certified Public Accountant appointed by the Commission from two nominees of both parties, submitted within fifteen (15) days from receipt of this decision, and to be compensated by the corporation; Ordering, after the aforementioned accounting has been made, the distribution of surplus profits accumulated from 1993 to 1997 in excess of 100% of the paid-in capital of the corporation. [Petitioners' shares] in the said profits may be compensated or offset against the amounts due from them as ordered above; provided that in the event the practice of cash advances and non-payment of rentals was likewise done by the [petitioners] for the years 1996 and 1997, then their repayments should be made in accordance with the procedure described above; and provided, finally, that the practice shall stop altogether for the year 1998 and thereafter. Charging the payment of [respondent's] cost of litigation including attorney's fees, properly audited by the aforementioned appointed Certified Public Accountant, against funds of the corporation. SO ORDERED.