SC: Businessman’s kin own stocks of ‘3-D’ appliance firm

The Supreme Court has ruled that the mother and three siblings of businessman Gilbert Guy are the real owners of some 20, 160 shares of stocks of a company, which is the country's sole distributor of the popular “3-D" home appliance. In a 23-page decision penned by Associate Justice Angelina Sandoval-Gutierrez, the Supreme Court’s First Division maintained the November 27, 2006 decision of the Court of Appeals (CA). The CA earlier granted control of Northern Islands Co., Inc. to the Guy family’s matriarch, Simny Guy, and her daughters Geraldine, Gladys and Grace. The high court said that petitioners Gilbert, and his company, Lincoln Continental Development Co. Inc. (LCDCI), failed to show proof that the transfer of the company’s shares of stock to Gilbert's sisters was fraudulent. Also, the high tribunal said that it had long been established that LCDCI held the disputed shares of stock of Northern Islands merely in trust for the Guy sisters. Based on case records, Northern Islands was organized by spouses Francisco and Simny Guy in 1957. In 1986, the couple incorporated LCDCI as a holding company of the 50 percent shares of stock of Northern Islands in trust for their three daughters. In December 1986, upon instruction of spouses Guy, lawyer Andres Gatmaitan, president of LCDCI, endorsed in blank stock certificate no. 132 covering 8,400 shares and stock certificate no. 133 covering 11,760 shares, which were delivered to Simny. Subsequently, the Guy couple found that their son Gilbert has been disposing of the assets of their corporations without their authority. In order to protect the assets of Northern Islands, Simny surrendered stock certificate nos. 132 and 133 to Emilia Tabugadir, an officer of Northern Islands. The 20,160 shares covered by the two stock certificates were then registered in the names of their three daughters, thus, enabling them to assume an active role in the management of Northern Islands. On January 27, 2004, a special meeting of stockholders of Northern Islands was conducted, wherein Simny was elected president; Grace as vice-president for finance; Geraldine as corporate treasurer; and Gladys as corporate secretary. Gilbert, meanwhile retained his position as executive vice president. On March 18, 2004 LCDCI filed with the Manila Regional Trial Court, Branch 24, a complaint for annulment of transfer of shares of stock against the respondents. The complaint alleged that LCDCI owned the subject shares of stock and that respondents falsely transferred the said shares in the name of Gilbert’s sisters to oust their brother from the management of Northern Islands. The case was later transferred to the Manila Regional Trial Court Branch 25, which issued an order on September 19, 2005 dismissing the complaint. When the case was elevated to the CA, the appellate court ruled in favor of Gilbert's mother and his sisters, prompting petitioner to raise the matter to the Supreme Court. - GMANews.TV