With the resulting sale, merger or consolidation under the present guidelines, it is

hoped that there will be stronger and better quality PHEIs. The infusion of much
needed investment and capital to HEIs certainly will be an impetus towards the
attainment of greater quality.
On another plane, the coming of ASEAN integration intends to establish the region
as a single market and production base, turning diversity into economic opportunities
for complementation to make ASEAN a more dynamic and stronger segment of the
global supply chain. Needless to say, this poses a major challenge to Philippine
higher education institutions to redefine their competitive advantages, build-up worldclass facilities, classrooms, and laboratories, and acquire new learning approaches
through faculty exchanges, researches, extensions and innovation. In a competitive
and even tight investment and capital market, the acquisition , mergers and other
corporate combinations may be a viable mechanism to access the needed funding
and resources critical in strengthening the Philippine position as an education and
training hub in the advent of ASEAN integration.
Hence, this Policies, Standards and Guidelines on Sale, Merger or Consolidation of
in the Philippines is hereby formulated.

ARTICLE II
OBJECTIVE
This set of PSGs generally seeks to rationalize, organize and properly implement the
fundamental processes and procedures governing the sale, mergers or consolidation
of PHEIs expected to significantly strengthen and improve the Philippine higher
education sector and make it responsive to national and international developments.
Specifically, the CMO is formulated in order to attain the following:
A) To strengthen the higher education sector through the operation of stronger,
more viable, and better quality HEIs delivering better learning outcomes vital
in producing globally competitive graduates;
B) To promote economy and efficiency in the operation of the administrative and
academic components of higher educational institutions in support of the
ongoing educational reforms that include RA 10533 otherwise known as the
Enhanced Basic Education Act of 2013 or K to 12 program, alignment of
Philippine higher education programs with the ASEAN Reference
Qualifications Framework , meaningful participation to the integration process
of the ASEAN Economic Community (AEC) or ASEAN Integration as well as
the Trans-Pacific Partnership Trade Agreement;
C) To provide the policy environment for reforms towards the streamlining of the
higher education sector for greater quality, productivity, stability, efficiency
and competitiveness as well as the development of globally comparable
universities and colleges; and

D) To provide the mechanism for access to capital, funding and investments to

PHEIs to upgrade its facilities and programs for quality education while
sustaining its economic viability and financial sustainability in the
management of school operations.

ARTICLE III
GENERAL POLICY
SECTION 1. ON SALE
As a general policy, the sale of higher educational institutions (HEIs) shall require the
endorsement and/or approval of the Commission on Higher education in accordance
with the policies, standards and guidelines herein set forth. It shall also be in
accordance with other pertinent or applicable laws.
SECTION 2. ON MERGERS OR CONSOLIDATION
As a general policy, the merger or consolidations of higher education institutions
(HEIs) shall require endorsement and/or approval of the Commission on Higher
Education and the Securities and Exchange Commission. The merger or
consolidation shall be in accordance with the applicable rules under the Corporation
Code, the Competition Policy and other pertinent or applicable laws, rules and
regulations.
SECTION 3. All private HEIs including their campuses and branches are covered
under this CHED Memorandum Order. Likewise, foreign HEIs or education service
providers operating in the Philippines shall also be covered by these rules and
regulations.

ARTICLE IV
OBJECT, TYPES AND COMPONENTS OF SALE AND MERGER

SECTION 1. OBJECT OF SALE, MERGER OR CONSOLIDATION

The sale/transfer, merger or acquisition contemplated under these rules refers to the
entirety of the HEI as a corporation, provided that specific components of the HEIs
assets and/or liabilities may be specified or included in the said sale/transfer, merger
or acquisition; provided further that only in cases where the sale/transfer of assets of
the school involves all or substantially all of the property or assets necessary or
required for the operation of the school of a non-stock corporation, or at least a
majority of the shares of stocks in case of stock corporations, except in the case of
foreign investors where the constitutional limitation of not more than 40% shall apply,
shall the government permits or recognitions and other status or similar conditions
be acquired by or transferred to the buyer, or in the case of merger, the absorbing
entity or the new entity, as the case may be, subject to the evaluation and approval

by the Commission to ensure quality education and that the purposes of this Order
are attained and complied with.

Section 1.1 Total Sale: Totality of the HEI

In the case of the totality of the HEI, the sale, merger or
consolidation shall cover the school corporation, its tangible and
intangible assets as well as liabilities directly or indirectly under
its corporate name or other assets for which it is the beneficial
owner thereof.

Section 1.2 Partial Sale: Component or Asset of the HEI

In the case of partial sale, merger or consolidation, either the
school alone as a corporate entity is the object of the transaction
or other tangible assets such as real property, intangible assets
like shares of stocks or similar assets; or a part of the operation
of the school. In such a case, the acquisition or transfer of the
permits or recognition and other status or similar status to the
buyer or transferee shall be subject to appropriate stipulations
and further approval by the Commission on Higher Education.

SECTION 2. TYPES OF CORPORATE MERGERS, CONSOLIDATION AND

ACQUISITIONS
Section 2.1 Between or Among Stock HEIs
In this category, the merger of the HEIs involving shares of
stocks and other assets either total or partial may be undertaken
by the concerned HEI or concerned parties, provided, however,
that the various requirements provided for by the Corporation
Code, including but not limited, to tax and labor laws, are
complied with.
Section 2.2 Between or Among Non-stock, Non-profit HEIs
In this category, the merger of the HEIs does not involve shares
of stocks but a change of membership of the Board of Trustees
or the takeover of the total management in the concept of
owner. Likewise, the school and other assets either total or
partial may be undertaken by the concerned parties, provided,
however, that the various requirements provided for by the
Corporation Code, including but not limited, to tax and labor
laws, are complied with.

Section 2.3 Involving Non-stock/Non-Profit and Stock/Profit HEIs

This category may involve a change of membership of the Board
whether total or partial. The takeover of the total management is
likewise done. The merger of the HEIs may involve conversion
of shares of stocks and other assets either total or partial,
provided, however, that the transaction is in accordance with
various requirements provided for by law, especially the
Corporation Code; and provided , further that relevant provisions
of tax and labor laws are complied with.
In this category, however, a major consideration should be the
opportunity for non-stock, non-profit HEIs to access funding and
investments from stock/profit HEIs in order to enhance quality
and viability. Thus, the surviving entity should be the viable and
dominant entity that can provide the impetus towards greater
viability and enhanced quality.
Section 2.4 Involving Philippine HEIs and Foreign HEIs
In this category, a Philippine HEI is either acquired totally or
partially as a standalone sale or merged with a foreign HEI or
education service provider. This either could result in the change
of membership of the Board of the Philippine HEI. In the case of
the merger or consolidation of the HEIs, this will involve
conversion of shares of stocks and other assets either total or
partial, provided, however, that the various requirements
provided for by the 1987 Philippine Constitution involving the
sale or acquisition of and management of educational
corporations (Article 14, 1987 Constitution ) and other laws,
including but not limited, to tax and labor laws, are complied
with; and provided further that at least a better quality of higher
education delivery shall be attained and maintained.
Section 2.5 Involving Philippine HEIs and Non-HEIs
In this category, a Philippine HEI is acquired either totally or
partially by a non-HEI. The non-HEI may acquire the Philippine
HEI through the purchase of its shares of stock if it is a stock
corporation, or of its assets if it is a non-stock corporation.
Whether the sale is total or partial, the acquiring non-HEI shall
ensure that the various requirements provided for by the 1987
Philippine Constitution involving the acquisition and
management of educational corporations (Article 14, 1987
Constitution) and other laws, including but not limited to, tax and
labor laws are complied with; provided further that the quality of
education shall be maintained or enhanced.

ARTICLE V
DEFINITION OF TERMS
For purposes of these PSGs, the following terms are hereby defined as follows:
A. ASEAN ECONOMIC COOPERATION (AEC) 2015. This is defined as a
single regional common market of ASEAN countries starting 2015. The
regional integration's objective is to create a competitive market of over 600
million people in ASEAN countries: Brunei, Cambodia, Indonesia, Laos,
Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
There will be free flow of goods, services, investment capital and skilled labor
following the liberalization. These will include tariff reductions and
streamlining of certain administrative procedures. Many businesses have
begun preparing themselves three years ahead of time to meet the challenges
and opportunities of the AEC.
B. ASSIGNMENT OF RIGHTS/INTEREST. This means the transfer of a
property right or title to some particular person under an agreement, usually in
writing. Unless an assignment is qualified in some way, it is generally
considered to be a transfer of the transferor's entire interest in the estate,
chattel, or other thing assigned. An assignment is usually limited to the
transfer of intangible rights, including contractual rights, chooses in action and
rights in or connected with property.
C. BUYER. Also referred to as the Vendee, and refers to the purchaser of a
higher education institution or an interest therein.
D. CONSIDERATION. This refers to any benefit conferred, or agreed to be
conferred, or the price of the higher education institution or an interest therein
that is intended to be transferred by the buyer to the seller.
E. CONSOLIDATED SCHOOL. This refers to the new higher education
institution created after dissolution of the constituent educational corporations.
F. CONSOLIDATION. This refers to a union of two or more existing higher
educational institutions to form a single new educational corporation called the
consolidated school. Said new entity shall have the combined rights,
privileges, franchises, powers, assets and liabilities of the constituent
corporations, which are deemed dissolved.
G. CONSTITUENT SCHOOLS. This refers to the higher educational
institutions which are parties to merger or consolidation. In the case of
merger, they are the absorbed and absorbing corporations while in the case
of consolidation, they are the two or more corporations desiring to unite into a
single, new educational corporation.
H. INTANGIBLE ASSET. This refers to non-physical assets having a useful
life of greater than one year. For purposes of this Order, in higher education

institutions, this may include, but not limited to, permits, recognition,
accreditation, other similar privileges and entitlements.
I. MERGER. This refers to the union of two or more existing higher
educational corporations, whereby the surviving educational corporation
retains its identity and absorbs one or more constituent educational
corporation/s, and takes over the rights, privileges, franchises, powers, assets
and liabilities of the absorbed corporation/s. The absorbed corporation/s is/are
deemed dissolved.
J. SALE. This refers to a contract whereby one of the contracting parties is
obligated to transfer the ownership of and to deliver a determinate thing, and
the other to pay therefore a price certain in money or its equivalent. (Art.
1458, NCC). This is essentially an acquisition or the purchase of one HEI by
another entity (either an HEI or a non-HEI) in which no new company is
formed. The term sale shall also cover transactions such as the transfer or
assignment of rights/interests, or similar modes, among others.
K. SELLER. This is also referred to as the Vendor and refers to the
educational institution which transfers property by sale to the buyer or an
interest or right therein. The seller generally negotiates the sale and becomes
the recipient of the consideration.
L. SURVIVING SCHOOL. refers to the higher educational institution which
survives and continue the operations of the combined institutions in the case
of merger.
M. TANGIBLE ASSET. This refers to assets in physical form such as
buildings and land, equipment, facilities, machinery, and current assets like
inventory of stocks or goods.

ARTICLE VI
GUIDELINES AND PROCEDURES

SECTION 1. ON SALE, THE FOLLOWING PROCEDURES SHALL APPLY:

Section 1.1

Information of Intent and Approval by CHED

For a contemplated sale, the Buyer or the appropriate
representative shall inform the CHED of its intent to
purchase a particular HEI or any interest therein within 30
days before the Buyer has firmed up preliminary plans to
negotiate acquisition of the said HEI.
Within 15 days, the CHED shall communicate its action on
the Letter of Intent of the Buyer and attaching in its decision

any information that may be deemed relevant on the HEI

which is the subject of the sale to the concerned parties.
Section 1.2

Information of the Result of the Negotiations by Buyer

In any event,
it shall be the duty of the Buyer or the
authorized representative to communicate to the CHED the
results of their final negotiations with the HEI subject of sale
within 15 days. In the case of a successful and/or
consummated sale, the Buyer shall fully disclose in writing,
within fifteen (15) days to the CHED the identities of the
buyers/ parties in interests, new owners or shareholders.

Section 1.3

Action of the Commission

Upon notification of the CHED of the change of ownership of
the HEI subject of sale, the new owners may immediately
apply for the confirmation of permits, recognitions, and other
status or entitlements.
The CHED, after determining compliance with the provisions
of this CMO and other applicable PSGs, laws, rules and
regulations, and once the registration requirements are
complied with, the Commission within thirty (30) days shall
confirm and issue the Certificate of Confirmation of permits,
recognition of programs, or institutional status subject to
compliance with the relevant Policies Standards and
Guidelines and such action shall be the basis for the
operation of the programs and the typology of said HEI
pursuant to CMO 46 series 2012.
This confirmation shall also cover other entitlements of the
HEIs including but not limited to accreditation levels, and
other status conferred and/or already being enjoyed by said
HEI.

Section 1.4

Full Disclosures in Writing of the Buyers/Parties in

Interests, New Owners or Shareholders Involved in the
Sale, Transfer/Assignment of Right/Interests of the
Private Higher Education Institution.
To reiterate, in view of the Constitutional protection accorded
to educational institutions and as special corporations
regulated under the Corporation Code of the Philippines, and
considering the public interest and national security
dimensions of educational corporations in the Philippine
setting, in the event that there is a change in ownership of
the higher education institution either through sale of,

transfer/assignment of rights/interests or ownership, or

similar modes, it shall be the duty of the Chairman of the
Board of Trustees/Directors of the private higher education
institution to fully disclose in writing, within fifteen (15) days,
to the Commission on Higher Education Commission the
change in ownership specifying the identities of the new
owners or shareholders and other pertinent information.

Section 1.5

Transfer of Permits, Recognition and Other Status or

Condition Due to the Sale, Merger or Acquisition
The Commission thru its appropriate offices and officials,
within thirty (30) days, shall confirm the permits, recognition,
status (i.e. university status, etc) or similar conditions of the
HEI subject of sale or merger effected either through the
sale/transfer or acquisition of assets in the case of non-stock
corporation, or of shares of stock in the case of stock
corporations, or through any of the mergers or consolidation
contemplated herein, if compliant under this CMO provided
that the sale or merger shall result to better quality
education. The letter of confirmation shall also cover other
entitlements of the HEIs including but not limited to
accreditation levels, and other status conferred and/or
already being enjoyed by said HEI.

SECTION 2. MERGERS OR CONSOLIDATION. In the case of mergers or

consolidations, the following conditions and procedures shall apply:
Section 2.1

Appropriate Parties Shall Seek Approval

For a contemplated sale, transfer/assignment of
rights/interests, the buyer shall inform the board or the
appropriate authority the Commission of the intent.

2.1.1 Initiation Phase

A. Articles of merger or consolidation embodying the
following:
1) Plan of Merger or Consolidation;
2) The Number of Shares Outstanding in case of Stock
Corporations, or of
Members, in case of Non-Stock
corporations; and
3) As to Each Corporation, the Number of Shares
Outstanding or Members Voting for and the Names of
Stockholders or Members Voting Against such Plan,
respectively.

B. Plan of merger or consolidation setting forth the following:

1) The names of the schools proposing to merge or
consolidate, hereinafter referred to as the constituent
schools;
2) The terms of the merger or consolidation and the mode of
carrying the same into effect;
3) A statement of the changes, if any, in the articles of
incorporation of the surviving school in case of merger;
and, with respect to the consolidated school in case of
consolidation, all the statements required to be set forth
in the articles of incorporation for corporations organized
under the Corporation Code; and
4) Such other provisions with respect to the proposed
merger or consolidation as are deemed necessary or
desirable.
C. Approval of the Plan to Merge or Consolidate
1) Approval of the plan of merger or consolidation by
majority of the Board of Directors of Trustees having a
quorum in a meeting duly called for such purpose; and
2) Approval of the plan of merger or consolidation by at least
2/3 of the outstanding VOTING capital stock in a stock
corporation or at least 2/3 of the members in case of nonstock educational corporations.
Section 2.2

Action of the Commission on Higher Education

Upon compliance with the provisions of this CMO and other
applicable laws, rules and regulations, and once the
registration requirements are complied with, the Commission
within thirty (30) days shall confirm and issue the certificate
of confirmation of permits, recognition of programs, or
institutional status subject to compliance with the relevant
Policies Standards and Guidelines, and such action shall be
the basis for the operation of the programs and typology,
pursuant to CMO 46 series 2012, of the surviving entity or
the new entity created. This confirmation shall also cover
other entitlements of the HEIs including but not limited to
accreditation levels, and other status conferred and/or
already being enjoyed by said HEI to the surviving HEI or
corporation or to the new entity as the case maybe.
In
case
application
is
denied,
motion
for
reconsideration/appeal may be filed by the party to the
Commission En Banc within 15 days from receipt of the
denial.

Section 2.3

Full Disclosure in Writing of the Buyers/Parties in

Interests, New Owners or Shareholders involved in the

Merger or Consolidation of the Private Higher Education

Institution
Likewise, in view of the Constitutional protection accorded to
educational institutions and as special corporations regulated
under the Corporation Code of the Philippines, and
considering the public interest and national security
dimensions of educational corporations in the Philippine
setting, in the event that there is a change in ownership of
the higher education institution either through sale of,
transfer/assignment of rights/interests or ownership, or
similar modes, it shall be the duty of the Chairman of the
Board of Trustees/Regents/Governing Board of the private
higher education institution to fully disclose in writing, within
thirty (30) days, to the Commission on Higher Education
Commission the identities of the buyers/ parties in interests,
new owners or shareholders.
Section 2.4

Transfer of Permits, Recognitions, and Other Status or

Condition Due to the Merger
The Commission thru its appropriate offices and officials,
within thirty (30) days, shall confirm the permits, recognition,
status (i.e. university status, etc) or similar conditions of the
HEI subject of merger, if compliant under this CMO provided
that the merger shall result to better quality education. The
letter of confirmation shall also cover other entitlements of
the HEIs including but not limited to accreditation levels, and
other status conferred and/or already being enjoyed by said
HEI.

Section 2.5

Approval of the Securities and Exchange Commission

Articles of Merger or Consolidation

After the lapse of the period to file an objection/opposition and no
opposition/objection has been filed or after all objection/oppositions have
been resolved, the constituent Schools must file with the Securities and
Exchange Commission (SEC) the Plan of Merger or Consolidation and the
Articles of Merger or Consolidation, together with the other supporting
documents required by the Corporation Code of the Philippines and SEC
rules and regulations can file with this Commission the Articles of Merger or
Consolidation. These Articles shall be signed by the president and certified by
the secretary of each school and shall contain the following:
a. The plan of the merger or the plan of consolidation;
b. As to stock schools, the number of shares outstanding, or in the case
of non-stock schools, the number of members; and
c. As to each school, the number of shares or members voting for and
against such plan, respectively.

The SEC shall approve the articles of merger/consolidation and issue the
corresponding Certificate of Filing of Articles of Merger/Consolidation if it is
satisfied that the merger or consolidation of the corporations concerned is not
inconsistent with the provisions of the Corporation Code, existing laws and
SEC rules and regulations.
The merger or consolidation shall be effective upon the issuance by the SEC
of the necessary Certificate of Merger or of Consolidation, as the case maybe.
The SEC shall inform the Bureau of Internal Revenue (BIR) of the approval of
the Merger/Consolidation.
Section 2.6

Publication of the Proposed Merger or Consolidation

a. The proposal to merge or consolidate the schools shall be
posted in at least three (3) conspicuous places in their
respective areas of operation;
b. The proposal shall also be published in a newspaper of
general circulation once a week for three consecutive weeks;
c. Notice of the proposal to merge or consolidate the schools
shall be sent to all creditors of the constituent schools.

ARTICLE VII
EFFECT OF SALE
The sale or the transfer / assignment of rights / interests shall have the following
effects:
A. The ownership of the educational institution shall be transferred to the Buyer
upon the fulfillment of all the conditions the set forth under Article VI, Section
1 of this guidelines. However, in the case of the sale involving the operation
of the school corporation or at least a majority of the shares of stocks, except
in the case of foreign investors where the constitutional limitation of not more
than 40% shall apply, the government permits or recognitions and other
status or similar conditions shall be acquired by or transferred to the buyer
subject to the evaluation and approval by the Commission to ensure quality
education and that the purposes of this Order are attained and complied with;
B. The Buyer shall possess all the rights, privileges, immunities, franchises, and
powers and shall be subject to all the duties and liabilities of the HEI except
as may be otherwise provided in accordance with law. These shall include
but not limited to the permit and/or recognition of programs or accreditation to
any and/all courses or programs issued and/or granted by the CHED ; and all
property, real or personal, and all receivables due on whatever account,
including subscriptions to shares and other chooses in action, and all and

every other interest of, or belonging to, or due to the HEI ( Seller) , shall be
deemed transferred to and vested in the BUYER without further act or deed;
C. The Seller higher education institution in view of a sale shall remain obligated
to: (1) furnish the necessary transfer credentials and records to students
affected by the sale, merger or consolidation; and (2) cause the preservation
of all the students academic records by submitting the same to the surviving
HEI, CHED Regional Office and the National Archives Office;
D. The Seller higher education institution shall assist and facilitate the immediate
transfer of the students affected by the sale, and provided further, that the
Commission shall be duly informed of the intent of transfer before the sale
takes effect, and
G. The Buyer shall be responsible and liable for all the liabilities and obligations
incurred by the Seller higher education institution, unless otherwise stated or
limited in their contract of sale.

ARTICLE VIII
EFFECT OF MERGER OR CONSOLIDATION
The merger or consolidation shall have the following effects:
A. The constituent schools shall become a single school which, in case of
merger, shall be the surviving school designated in the plan of merger; and, in
case of consolidation, shall be the consolidated school designated in the plan
of consolidation;
B. The separate existence of the constituent schools shall cease, except that of
the surviving or the consolidated school;
C. The surviving or the consolidated school shall possess all the rights,
privileges, immunities and powers and shall be subject to all the duties and
liabilities of a school organized under the Corporation Code;
D. The surviving or the consolidated school shall thereupon and thereafter
possess all the rights, privileges, immunities and franchises of each of the
constituent schools, including, but not limited to, the permit and/or recognition
or accreditation to any and/all courses of study in the tertiary or post graduate
level issued and/or granted by the Commission to each of the constituent
schools; and all property, real or personal, and all receivables due on
whatever account, including subscriptions to shares and other chooses in
action, and all and every other interest of, or belonging to, or due to each
constituent school, shall be deemed transferred to and vested in such
surviving or consolidated school without further act or deed;
E. The higher education institution in view of a sale, merger or consolidated shall
remain obligated to: (1) furnish the necessary transfer credentials and records
to students affected by the sale, merger or consolidation; and (2) cause the
preservation of all the students academic records by submitting the same to
the surviving HEI, CHED Regional Office and the National Archives Office;

F. The selling higher education institution shall assist and facilitate the
immediate transfer of the students affected by the sale, merger or
consolidation, and provided further, that the Commission shall be duly
informed of the intent of transfer before the sale, merger or consolidation
takes effect, and
G. The surviving or consolidated school shall be responsible and liable for all the
liabilities and obligations of each of the constituent schools in the same
manner as if such surviving or consolidated school had itself incurred such
liabilities or obligations; and any pending claim, action or proceeding brought
by or against any of such constituent schools may be prosecuted by or
against the surviving or consolidated school. The rights of creditors or liens
upon the property of any of such constituent schools shall not be impaired by
such merger or consolidation.

ARTICLE IX
EFFECT ON LABOR
Every private higher education institution subject of the sale, merger and
consolidation shall promote the improvement of the economic, social and
professional status of all its personnel.
In recognition of their special employment status and their special role in the
promotion of education, the employment of the academic and the academic support
personnel, or the teaching and non-teaching academic personnel, shall be governed
by the policies and rules of the Commission, promulgated from the time to time, in
coordination with the Department of Education (DepEd), the Technical Education
and Skills Development Authority (TESDA), and the Department of Labor and
Employment (DOLE).
Conditions of employment of non-academic and other personnel of the institution,
including compensation, hours of work, security of tenure and labor relations, shall
be governed by appropriate labor laws; regulations; and jurisprudence and by
institutional policies, rules and regulations.

ARTICLE X
EFFECT OF THE COMPETITION LAW
The Competition Law is intended to ensure efficient market competition and to level
the playing field among businesses engaged in trade, industry, and all commercial
economic activities.
In relation to this, the sale or merger of higher education institutions shall follow
pertinent rules and regulations provided for under the Philippine Competition Law
and Republic Act 10667 or An Act providing for a National Competition Policy, AntiCompetitive Agreements, Abuse of Dominant Position and Anti-Competitive Mergers
and Acquisitions, Establishing the Philippine Competition Commission and
Appropriating Funds Therefor, thus shall have direct and suppletory effect on the
implementation of the Policies, Standards and Guidelines on Sale, Merger or
Consolidation of Private Higher Education Institutions.

In the case of the merger or consolidation of educational institutions, a favorable or

no-objection ruling by the Philippine Competition Commission shall not be construed
as dispensing of the requirement for a favorable recommendation by the
Commission on Higher Education.

ARTICLE XI
REVIEW
The policies, standards and guidelines contained herein and the constituent
schools/s compliance therewith shall be reviewed every three (3) years from the
grant of this Commissions Confirmation or earlier as maybe directed by the
Commission as when warranted by exigent circumstances.

ARTICLE XII
CREATION OF INTER-AGENCY TASK FORCE ON SALE, MERGER AND
ACQUISITION
In order to implement the purposes and objectives efficiently and effectively, an interagency is hereby created.
SECTION 1. The Task Force shall be composed of the Commission on Higher
Education as the lead agency particularly: (1) Office of the Executive Director
head, (2) Office of Programs and Standards Development, (3) Legal and Legislative
Service, and (4) Office for Planning, Research and Knowledge Management, and
with the following agencies:
(1)
Securities and Exchange Commission (SEC)
(2)
Department of Justice (DOJ)
(3)
Department of Labor and Employment (DOLE)
(4)
Office for Competition - DOJ

SECTION 2. The Task Force shall exercise oversight responsibility and have the
following functions:
2.1
Evaluate documents and applications involving sale, merger and
consolidation of parties;
2.2
Review proposed mergers and consolidations;
2.3
Monitor and undertake consultation with affected;
2.4
Develop relevant policies, standards and guidelines, if needed;
2.5
Conduct meetings and dialogues as deemed necessary with the
different inter-agencies and stakeholders in higher education;
2.6
Shall convene meetings, conferences, and hearings, and require the
attendance of parties;
2.7
Conduct ocular/validation visits, investigations, and recommend to the
Commission for any appropriate action as may be deemed proper;

2.8

2.9

Conduct administrative proceedings, impose sanctions, fines or

penalties for any noncompliance with or breach of this CMO and its
implementing rules and regulations (IRR) and punish for contempt; and
Perform other tasks as may be deemed necessary.

ARTICLE XIII
SANCTIONS
Any HEI found guilty of violating the provisions herein contained shall be subject to
the appropriate administrative proceeding including the imposition of sanctions, but
not limited to the withdrawal or revocation of authority to operate the program,
phase-out of the program, recommendation for the withdrawal of accreditation, and
closure of the HEI/program pursuant to Section 8 (e) of Republic Act 7722.
The following are hereby declared punishable acts subject to civil and criminal
penalties and administrative sanctions as provided by law:
(1) Failure to fully disclose any information as provided for under this CMO;
(2) Submission of fraudulent documents;
(3) Misrepresentation; and
(4) Any other acts as may be deemed punishable by the task force.
If the institution commits the act, the official responsible for the offense shall be
liable, without prejudice to the imposition of any administrative sanction against the
higher education institution concerned by the Commission.
In no case shall students be displaced as a result of the sanctions imposed by the
Commission. Students affected as a result of the immediate termination of
educational programs shall be assisted in transferring to another HEI.

ARTICLE XIV
REVOCATION OF CERTIFICATION OF PERMITS
The Commission reserves the right to cancel or revoke Certification of Permits of any
institution whose records are found to be fraudulent.

ARTICLE XV
IMPLEMENTING AND INTERPRETATIVE ISSUANCES
The Commission may issue from time to time supplemental and/or interpretative and
clarificatory rules and regulations to enhance and make more effective the
implementation of this CMO in conjunction with related issuances on the matter.