MORNBFI Vol. 1 - Planters Development Bank

§§ 4143Q.3 - 4143Q.408.12.31§ 4143Q.3 Effect of non-possession ofqualifications or possession ofdisqualifications. Director/trustee/officerelected or appointed who does not possessall the qualifications mentioned underSubsec. 4141Q.2 and the last paragraphof Sec. 4142Q and/or has any of thedisqualifications mentioned underSubsecs. 4143Q.1 and 4143Q.2 shall notbe confirmed by the confirming authorityunder Subsec. 4141Q.4 and shall beremoved from office even if he/sheassumed the position to which he/she waselected or appointed. Confirmed director/trustee/officer or officer not requiringconfirmation possessing any of thedisqualifications, as enumerated in theabovementioned subsections shall besubject to the disqualification proceduresprovided under Subsec. 4143Q.4.Director/trustee/officer, prior to assumingthe position to which he/she was elected/appointed, must submit to theappropriate department of the SES averified statement that he/she has all theaforesaid qualifications and none of thedisqualifications. The submission ofverified statement will apply to directors/trustees/officers elected/appointed after14 March 2006.(As amended by Circular No. 513 dated 10 February 2006)§ 4143Q.4 Disqualification proceduresa. The board of directors/trustees andmanagement of every institution shall beresponsible for determining the existenceof the ground for disqualification of theinstitution’s director/trustee/officer oremployee and for reporting the same tothe BSP. While the concerned institutionmay conduct its own investigation andimpose appropriate sanction/s as areallowable, this shall be without prejudiceto the authority of the Monetary Board todisqualify a director/trustee/officer/employee from being elected/appointedas director/trustee/officer in any FI underthe supervision of the BSP. Grounds fordisqualification made known to theinstitution, shall be reported to theappropriate department of the SES withinseventy-two (72) hours from knowledgethereof.b. On the basis of knowledge andevidence on the existence of any of thegrounds for disqualification mentioned inSubsecs. 4143Q.1 and 4143Q.2, thedirector/trustee or officer concerned shallbe notified in writing either by personalservice or through registered mail withregistry return receipt card at his/her lastknown address by the appropriatedepartment of the SES of the existence ofthe ground for his/her disqualification andshall be allowed to submit within fifteen(15) calendar days from receipt of suchnotice an explanation on why he/sheshould not be disqualified and included inthe watchlisted file, together with theevidence in support of his/her position. Thehead of said department may allow anextension on meritorious ground.c. Upon receipt of the reply/explanation of the director/trustee/officerconcerned, the appropriate department ofthe SES shall proceed to evaluate the case.The director/trustee/officer concerned shallbe afforded the opportunity to defend/clearhimself/herself.d. If no reply has been received fromthe director/trustee/officer concerned uponthe expiration of the period prescribedunder Item “b” above, said failure to replyshall be deemed a waiver and theappropriate department of the SES shallproceed to evaluate the case based onavailable records/evidence.e. If the ground for disqualification isdelinquency in the payment of obligation,the concerned director/trustee or officershall be given a period of thirty (30) calendardays within which to settle said obligationor, restore it to its current status or, toexplain why he/she should not beManual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart I - Page 37