Philippine Journalists Inc Brief Introduction

P H I L I P P I N E  J O U R N A L I S T S  I N C.  (PJI)

B R I E F   I N T R O D U C T I O N

• Philippine Journalists Inc. (PJI) as incorporated on October 20, 1972, shortly after the declaration of Martial Law with an authorized capital of P 500,000, consisting of 5,000 common shares with par value of P 100 each.
• There was no stock and transfer book and no stock certificates issued to the incorporators until October 30, 1975.
• As of March 31, 1988, the capital deficiency has been reduced to P 92.7 million.
• Rosario Olivares, being the chairman have 14 dummies accounts in the common stock and 8 dummies account in the preferred stock.

S W O T   A N A L Y S I S

I S S U E

1.  MISMANAGEMENT

• After 3 years, there was no stock and transfer book, and no stock certificates issued in the corporation.
• Stocks were given as bonus despite deficit (Violation of the Corporation Code).
• No proper allocation of funds because the company release fund questionably.
• No proper authorization as to releasing of funds (Majority vote of Board of Directors and 2/3 of outstanding shares).
• Rosario Olivares have dummy accounts in the common and preferred stocks.
• The funds were given to a party who was not an officer neither a director. It is a violation of Trust Fund Doctrine which states that there will be no distributions of asset to the shareholders until claims of creditors have been paid or an appropriation of such assets has been made for payment of such claims).

2.  EXCESSIVE LOANS        

• The company purchased a brand new printing press thinking that it will improve the company's production and operation efficiency without considering its management.

3. DBP Governor        

• Former DBP Governor approved the behest loans of U.S. $ 1,869,160 for PJI in 1976-1978, which were manifestly  disadvantage to DBP and caused damages or injury to the government.
• They approved the said loan without considering the financial stability of the company.

A L T E R N A T I V E S