[Answer/discuss the question below, or see 2017 bar exam Mercantile Law Instructions; Also check the other 2017 Mercantile Law Questions:1, 2, 3, 5, 6, 7, 8, 9, 10, 11, and 12; See also 2017 Bar Exam: Information, Discussions, Tips, Questions and Results]
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%)