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Ex-Cirtek director goes to court to force Jerry Liu to open books

A former director of Cirtek Holdings Corp. has gone to court to force Taiwanese bilyonaryo Jerry Liu to open the Laguna-based electronics firm to open its books.

Rafael Estrada, who was first appointed as Cirtek director in 2013, and Otilio Vicente F. Arellano II have filed a joint complaint-affidavit for alleged violation of Section 73 in relation to Section 161 of the Revised Corporation Code (RCC) against Liu, his three sons, and directors and officers of Cirtek with the Office of the City Prosecutor of Biñan, Laguna.

Cirtek informed the Philippine Stock Exchange about the complaint on 23 September 2020 or a month after it received the complaint on August 17.

Estrada and Arellano had previously demanded in 23 October 2019 to inspect Cirtek’s corporate records, including “a documented blow-by-blow account of corporate decisions, transactions, accounting judgments and estimates.”

But Cirtek refused noting that the complainants “did not provide any legitimate reason for their request to inspect a great volume of corporate documents, contrary to the prevailing rule on the exercise of the right to inspect.”

Cirtek went to Branch 154 of the Biñan Regional Trial Court to seek a “judicial declaration” of is right to reject Estrada and Arellano’s demand to inspect Cirtek’s books due to “bad faith and ill motive.”

Cirtek said Estrada and Arellano filed the complaint even though the Biñan RTC has yet to rule on its petition.

Under the RCC, Cirtek is compelled to open its corporate records for inspection by any director, trustee, stockholder or member of the corporation in person or by a representative.

As of June 2020, Estrada has one share of Cirtek. Estrada previously served as vice chairman of the Social Security System, and director of Land Bank of the Philippines, Union Bank of the Philippines, Manila bDoctors Hospital, and Medical Center Manila.

Aside from Liu the respondents are Jorge Aguilar, Michael Stephen Liu, Brian Gregory Liu, Justin Liu, Ernest Fritz Server, Hector Villanueva, Corazon Guidote, Milet Cruzada and Rosario Menguito.

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