2017 (Mercantile Law) Bar Exam Questions: Question 4

[Answer/discuss the question below, or see 2017 bar exam Mercantile Law Instructions; Also check the other 2017 Mercantile Law Questions:123567891011, and 12; See also 2017 Bar Exam: Information, Discussions, Tips, Questions and Results]

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Procopio, a Director and the CEO of Parisian Hotel Co., Inc. (Parisian), was charged along with other company officials with several counts of estafa in connection with the non-remittance of SSS premiums the company had collected from its employees. During the pendency of the cases, Parisian filed a petition for rehabilitation. The court, finding the petition to be sufficient in form and substance, issued a commencement order together with a stay or suspension order.

Citing the commencement order, Procopio and the other officers facing the criminal charges moved to suspend the proceedings in the estafa cases.

(a) What is a commencement order, and what is the effect of its issuance? Explain your answer. (4%)

(b) Suppose you are the trial judge, will you grant the motion to suspend of Procopio, et al.? Explain your answer. (4%)

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