12_Lim-v-Moldex-Land.docx

LIM VS. MOLDEX LAND INC., et al. G.R. No. 206038; January 25, 2017 Mendoza, J. DOCTRINE:  A non-member cannot be elected as a director or officer of a corporation. FACTS: This case is a petition for review on certiorari   assailing the Decision of the RTC which dismissed the complaint against the respondents for the annulment of the general membership meeting of 1322 Roxas Boulevard Condominium Corporation (Condocor), annulment of election of Jeffrey Jaminola, Edgardo Macalintal, Joji Milanes, and Clothilda Roman, as members of the BOD, and for accounting.

Mary E. Lim is a registered unit owner of 1322 Golden Empire Tower, a condominium project of Moldex Land, Inc. (Moldex), a real estate company engaged in the construction and development of high-end condominium projects and in the sale of the units thereof to the public. Condocor, a non-stock and nonprofit corporation, is the registered condominium corporation for the Golden Empire Tower. Lim, as a unit owner of Golden Empire Tower, is a member of Condocor. On July 21, 2012 Condocor held its annual general membership meeting. Moldex became a member of Condocor on the basis of its ownership of the 220 unsold units in the Golden Empire Tower. During the meeting, an existence of a quorum was declared even though only 29 of the 108 unit buyers were present. Lim objected to the validity of the meeting but was denied, and Lim and all other unit owners, except for one, walked out of the meeting. Nonetheless, the individual respondents and the other unit owners proceeded with the meeting and elected the new members of the BOD. All four individual respondents (Jaminola, Macalintal, Milanes and Roman) were voted as members of the board, together with other 3 members, whose election was conditioned on their subsequent confirmation. Lim filed an election protest before the RTC. The RTC ruled in favor of the respondents and held that the presence or absence of a quorum in the subject meeting was determined on the basis of the voting rights of all the units owned by the members in good good standing. Lim filed the present petition claiming that the respondents, who are non-unit buyers, are not entitled to be members of the BOD because they are nonunit buyers because a condominium corporation, being an association of homeowners, must be composed of actual unit buyers or residents of the condominium project. Lim further alleged that the ownership of Moldex was only in the nature of an owner-developer and only for the sole purpose of selling the units. ISSUES: 1. Whether the membership meeting is valid; and 2. Whether Moldex is considered a member of Condocor. HELD: 1. No. The July 21, 2012 membership meeting was not valid. Any act act or transaction made during a meeting without quorum is rendered of no force and effect, thus, not binding on the corporation or parties concerned. Sec. 52 of the Corporation Code provides that “Unless otherwise provided for in this Code or in the by-laws, a quorum shall consist of the stockholders representing a majority of the outstanding capital stock or a majority of the members in the case of non-stock non-stock corporations.”

Moldex is a member of Condocor. Respondents are correct asserting in that a registered owner of a unit in a condominium project or the holders of duly issued condominium certificate of title, automatically becomes a member of the condominium corporation, relying on Sections 2 and 10 of the Condominium Act, the Master Deed and Declaration of Restrictions and the By-Laws of Condocor. Nonetheless, the quorum during the meeting should have been majority of Condocor's members in good standing. Accordingly, there was no quorum during the meeting considering that only 29 of the 108 unit buyers were present. As there was no quorum, any resolution passed during the said meeting was null and void and, not binding upon the corporation or its members.

2.

Yes. Moldex is a member of Condocor. Respondents are correct asserting in that a registered owner of a unit in a condominium project or the holders of duly issued condominium certificate of title, automatically becomes a member of the condominium corporation, relying on Sections 2 and 10 of the Condominium Act, the Master Deed and Declaration of Restrictions and the By-Laws of Condocor. In sum, the July 21, 2012 annual general membership meeting of Condocor being null and void, all acts and resolutions emanating therefrom are likewise null and void.