Dragon One Network Trends Corp.

Securities and Exchange Commission Republic of the Philippines Department of Finance

DRAGON ONE NETWORK TRENDS CORP. In the Matter of

SEC CD0 Case No. 09-16-033 ENFORCEMENT AND INVESTOR PROTECTION DEPARTMENT, Movant. X

CEASE AND DESIST ORDER

enjoin DRAGON ONE NETWORK TRENDS CORP. ("DRAGON"), their respective officers, directors, representatives, salesmen, agents, and any and all persons claiming and acting for and on their behalf from September 2016 by the Enforcement and Investor Protection Department (EIPD) of this Commission to further engaging in activities of offering for sale securities in the form of investment contracts to the public until the requisite registration statement is duly filed and approved by the Commission and the corresponding permit to offer/sell securities is issued Before the Commission is a Motion for Issuance of Cease and Desist Order ("Motion")1 filed on 8

CS201635627.2 Its principal address is at 29 Habana Bidg. J. Rizal Street, Davao City.3 The primary purposes of DRAGON are as follows:4 DRAGON was registered with the Commission on 13 January 2016 under SEC Registration No.

resources for the company, sell various products from different networking companies, sell services cosmetics and skin care products, household specialties and home appliances, household cleaning directly to consumers, provide accessible business opportunities, sell diverse products includes; products, laundry and personal care products, food and nutrition products, educational products, clothing, fashion accessories and jewelries, generally products that are sold in the context of group presentation and direct approach. To secure favorable volume of sales for various products and services, to enhance

Directors as shown in its Articles of Incorporation,are: Thousand (10,000) shares with the par value of One Hundred Pesos (P100.00) per share.5 Its Board of DRAGON's Authorized Capital Stock is One Million Pesos (P1,000,000.00), divided into Ten

Isagani A. Ubaldo Ma.Rheolyn D.Espanola Llendl Byshe D.Espanola Reynaldo S. Cleto Czean Kline S.Dante Name Filipino Filipino Filipino Filipino Filipino Nationality Blk 14 L12 Roseville Subd., Lanang,Davao City Blk 1 Lot 24,NHA Maa,Davao City Anahaw VillageMaa,Davao City Blk 1 Lot 24,NHA Maa,Davao City Blk 1 Lot 24,NHA Maa,Davao City Residence

from the Memorandum: Javey Paul D.Francisco of the Commission's Davao Extension Office (SEC-DEO).The following are excerpts On 10 February 2016, the EIPD received a Memorandum dated 4 February 2016 from Director

5 Ibid. p. 46 records,Seventh Article Ibid.p.47 records,Sixth Article. 2 Annex "A" of the Motion, p. 53 records. 3 Annex B" of the Motion,p. 48 records, Third Article. 4 Ibid., p. 49 records, Second Article. 7 Annex "C" of the Motion, pp. 29-34 records. 1 Dated 31 August 2016.

In Re: DRAGON ONE NETWORK TRENDS CORP SEC CDO Case No. 09-16-033

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Securities and Exchange Commission-Davao Extension Office (SEC-Davao) received an invitation dated January 18,2016 from the Office of the City Mayor of Davao City,herein attached as Annex Marketing, xxx. These establishments were allegedly engaging in investment-like activities similar to that of Jacama Sales and Marketing, an establishment allegedly closed down by Davao City's with Jacama for failure to secure the necessary license under Section 8 of the Securities Regulation Business Bureau following the publication of a SEC Advisory warning the public to stop investing Code. "A",to conduct a formalinvestigation of the actual business operations of xxx (2)Dragon One Trends

KXX

DRAGON ONE-TRENDS MARKETING Dragon One-Trends Marketing (hereinafter referred to as Dragon One) was represented by its owner, Mr. Isagani A. Ubaldo, during the investigation. Based on the proceeding conducted, the following information were gathered: Dragon One Trends Marketing is a business entity registered with the DTI on Deceber 29,2015.The DTI certificate was issued in the name of Isagani Aviguetero Ubaldo. Attached is a copy of its DTI registration as Annex "N"

Since it was a fairly new business entity at the time it was called before the City with no business permit yet issued,Mr. Ubaldo alleged that its business is not yet fully operational and that it was merely conducting a "dry-run" to test its marketing scheme. Mr. Ubaldo admitted, though, that it was already paying out its clients based on the business' [sic] scheme. Its marketing scheme and reward program are herein attached as Annex "O"

network companies and manufacturers to use Dragon One as an avenue to sell their products. Mr. Ubaldo emphasized to the panel that the main goal of Dragon One is to encourage its partner

similar to that of Jacama's. Mr. Ubaldo admittet that many members of Jacama joined Dragon One. The scheme employed by Dragon One was not dealt with extensively because Atty. Domingo cut to the chase and told Mr. Ubaldo that based on the documents it submitted,Dragon One's operation is

have to be registered with the SEC and the necssary Secondary License,if needed,will have to be Mr. Ubaldo was advised by the investigating panel that any form of investment-like activities will obtained. It was advised that its application for a business permit will be held in abeyance until it registers with the SEC.

X X X UPDATES ON ACTIVITIES OF xXx DRAGON ONE TRENDS MARKETING xXX

registration of its corporation with SEc-Davao and its primary purpose read "to secure favorable Dragon One Network Trends Corporation, on the other hand, filed an application for its volume of sales for various products and services, to enhance resources for the company, sell various products from different networking companies,sell services directly to consumers, provide accessible business opportunities,sell diverse products includes; cosmetics and skin care products household specialties and home appliances, household cleaning products, laundry and personal care products,food and nutrition products, educational products,clothing,fashion accessories and jewelries, generally products that are sold in the context of group presentation and direct the requirements of SEC, the same was issued a Certificate of Registration on January 25,2016. It is worthy of note that one incorporator, Isagani A.Ubaldo (Chairman and President),was also the Owner of Dragon One-Trends Marketing which was one of the business entities investigated on January 18,2016.xxx approach." Because the documents were in order and the contents of such were in compliance with

of which reads: In response,the EIPD issued a Memorandumdated 16 February 2016,addressed to SEC-DEO,part

Annex "D" of the Motion, pp.26-28 records

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information gathered and circumstances attendant to the investigation/conference conducted. x x x In the said Memorandum,you requested for feedback on how you will proceed based on the

From the report, it appears that xxx Dragon One Trend Marketing xxx are DTI registered entities. While the DTI was represented at the meeting of 21 lanuary 2016,we,nonetheless suggest that you refer the matter to DTI-Davao Regional Office, copy furnished DTI Manila Main Office,for the conduct of parallel investigation on the possibleiviolation of R.A. 7394 The Consumer Act of the Philippines with particular reference to Articles 53 and 4 (k) of the said law.

XXX

Pyramid schemes and investment contracts, respectively. We attach a copy of said MOA for your Your referral to DTI is also in consonance with the Memorandum of Agreement (MOA) between the DTI and the SEC dated 28 August 2002 which clarified the jurisdiction of the two agencies on reference.

XXX

social media and other means,please coordinate with the PNP-CDIG (ACG and AFFCU) or NBI for As regards Dragon One-Trends Marketing xxx, who both claimed that they were merely conducting "dry-run" tests of its business, pleas conduct constant monitoring of its business operations. If, possible entrapment and other police activities. instead of ceasing operations, they continued with its "investment-taking activities through the

XXX

interviewed on how to earn income. The interviewee maybe [sic] allowed to keep his or her identity While a perusal of Annex "O" suggests a unilevel income determine how an investor earns income.There are no documents (i.e.brochures,flyers,leaflets) products, are they saleable?, are they sold at its "fair market value"?, are the investors enticed to join the entity because of the opportunity to earn income through RECRUITMENT OF PEOPLE INTO be conducted to determine its actual operations. It would be best if a member/investor be on the consumer products being sold. The following questions should also be satisfied, if there are THE SCHEME rather than the SALE OF THE PRODUCTS?,and others.We suggest that additional evidence be gathered to determine the invesrnent scheme.If possible,an undercover investigation confidential. scheme. e,the documents are insufficient t

As regards the newly registered corporations, namely xxx and Dragon One Network Trends Corporation, we suggest that your [0]ffice should be vigilant in the monitoring of the activities of necessary investigation. If there are definite findings of its illegal activities, this [D]epartment may the issuance of Cease and Desist Order before the OGC and ultimately a criminal complaint before subject corporations.If there will be reports of its iliegal activities,your [O]ffice should conduct the recommend for the issuance of an Advisory and the blacklisting of the corporation and its incorporators in the SEC database. If evidence s the DOJ. so warrants, the [D]epartment will file a petition for

XXX

DRAGON and attested as to the scheme employed by DRAGON.The Affidavit, along with its annexes,is attached to a Memorandum1 from SEC-DE0 dated 30 March 2016 to support the issuance of an advisory against DRAGON. Excerpts of Mr. Alicaba's sworn statement describing the scheme read In an Affidavit, a certain Jayson M. Alicaba declared under oath having invested money with

2 On March 15,2016,Iwent to the office of DRAGON ONE at Door 7,Habana BldgRizal St.Davao When I entered their office,I was approached by a certain Alben C.Marayag who explained to City to invest and buy their products. xxx

the company's employee,Jeffrey Marayag.He presented to me the business scheme of DRAGON ONE.Based on their business scheme,I can choose from among the packages ranging from One me on how to invest my money with the.ecinpany.xxx He claimed that he is a brother of one of

9 Annex Fof the Motion,pp. 19-20 Records. 10 AnnexE of the Motion,pp.21-22 Records.

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As I saw inside their office, their produs include consumable goods, health and wellness I was enticed to invest because of the profit that I will get when all the vouchers will be and will mature at an interval of 15 days. DRAGON ONE will encash the voucher/check at its maturity date. All four vouchers/checks will be encashed in two months.xxx When I claimed the items, the employee took the receipt. xxx Thousand Eight Hundred Pesos (Php 1,800.00) up to Three Hundred Sixty Thousand Pesos (Php 360,000.00).Upon payment of the chosen package,the member will receive a package product and four (4) company vouchers or post-dated checks for big amounts, with different maturity dates. The amount of each voucher/check is equivalent to 34.72% of the investment products, beauty essentials,ready to wear goods, shoes, jewelries and accessories, gadgets, cellular phones and appliances. Based or their leaflet, they also have packages for house/lot encashed. After Alben C. Marayag explained to me the business scheme,he then instructed me to fill up the registration form.xxx He even enticed me to invest large amount so I can get larger not signed and assured me that the same will be encashed upon presentment at the pay-out counters on their maturity dates. xxx I was then instructed to go back to the first floor to get my product. The product that I chose was 8-in-1 Micswell Cafe coffee and a rubbing ointment. and vehicles.xxx profit. Since I have only limited money, I chose to invest one thousand eight hundred pesos (Php 1,800. xxx When I saw the vouchers, the same were not signed by the authorized signatories, so I asked the cashier for a signature. She then told me that the vouchers are really

seeking for an official instruction regarding, among others, "the need to secure a secondary license from the EIPD received an electronic mail,12 attached to which is an unsigned Letter13 dated 5 April 2016 from a certain Isagani A. Ubaldo, introduced therein as President of Dragon One Trends International Corporation the SEC. On 7 April 2016, the Commission issued an Advisory11 against DRAGON.Earlier, on 6 April 2016

EIPD's request, issued a Certification14 that DRAGON is not a registered issuer of mutual funds including exchange traded funds,membership certificates, time shares,and registered but unlisted securities under Section 17.2(a) of the Securities Regulation Cocc (SRC) therefore not licensed to offer or issue such Securities to the public. On 11 April 2016, the Commission's Corporate-Governance and Finance Department (CGFD), upon

pending application for registration/permit to sell securities. a Certification15 that DRAGON: (1 has not registered any securities pursuant to Sections 8 and 12 of the SRC; (2) was not issued a Permit to Sell securities by the Commission; and (3) has not filed nor has any On 13 April 2016, the Commission's Markets and Securities Regulation Department (MSRD) issued

Investment House and Transfer Agent, nor has any pending application for said secondary licenses. issued a Memorandum16 certifying that DRAGON was not issued a secondary licenses as a Broker and/or Dealer of Securities, Dealer in Government Securities, Investment Adviser of an Investment Company, On 20 June 2016, the Commission's Compary Registration and Monitoring Department (CRMD)

submitted to the Commission, the EIPD finds sufficient evidence showing that DRAGON is soliciting investments from the public through its product packages. Hence, this Motion. Based on the investigation conducted by the SEC-DEO, as well as the documents gathered and

We find merit in the Motion.

from the Commission. and/or sale of securities to the public in the form of investment contracts without the necessary license EIPD's Motion, as supported by substantial evidence, shows that DRAGON is engaged in the offer

12 Annex I of the Motion,p. 6 records. 13 Ibid., p. 4 records. 14 Annex J of the Motionp.3 records. 11 Annex "H" of the Motion, p. 7 records. 15 Annex "K" of the Motion, p. 2 records. 1 Annex "L"of the Motion, p. 1 records.

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in character"17 and includes an investment contract.18 profit-making venture and evidenced by a certificate, contract, instrument, whether written or electronic Securities are "shares, participation or interests in a corporation or in a commercial enterprise or

within the Philippines, without a registration statement duly filed with and approved by the Commission. In connection therewith, Section 12.1 of the SRC states that all securities required to be registered under Subsection 8.1 shall be registered through the filing by the issuer in the main office of the Commission, of a sworn registration statement with respect to such securities, in such form and containing such information and documents as the Commission shall prescribe. Section 8.1 of the SRC provides that securities shall not be sold or offered for sale or distribution

An "investment contract" has been defined as follows:19

from the efforts of others. An investment is presumed to exist whenever a person seeks to use the whereby a person invests his money in a common enterprise and is led to expect profits primarily money or property of others on the promise of profits. An investment contract means a contract, transaction or scheme (collectively 'contract')

resources, creating a common enterprise, even if the promoter receives nothing more than a broker's commission. A common enterprise is deemed created when two (2) or more investors "pool" their

that an investment contract is a transaction,contract,or scheme whereby a person (1) makes an investment of money, (2) in a common enterprise, (3) with the expectation of profits, (4) to be derived solely from the from the US Supreme Court case Securities Exchange Commission v.WJ.Howey Co.20 where the Court stated efforts of others. The concept of an investment contract in the Philippines is of American origin. It traces its roots

the expected profit accrue solely from the efforts of others. 21 "solely" from the efforts of others should be liberaily construed because a literal reading of the requirement "solely" would lead to unrealistic results. It reasoned out that its flexible reading is in accord with the Statutory policy of affording broad protection to the public. Because of this, it is no longer necessary that In a subsequent U.S. Supreme Court case, it was held that the element that profits must come

example, in Power Homes Unlimited Corporation v. Securities and Exchange Commission,22 the Supreme relinquishes control over his or her funds and submits their control to another for the purpose of deriving profits from them,he or she is in fact investing in a security.23 Court stated that an investment contract in our jurisdiction, to be a security subject to regulation by the Commission,must be proved to be (1) an investment of money;(2) in a common enterprise; (3) with expectation of profits,(4) primarily from efforts of others. Under this definition,whenever an investor The concept of an investment contract has since been transported in the Philippines. Thus, for

investors place an amount ranging from One Thousand Eight Hundred Pesos (Php1,800.00) to Three Hundred Sixty Thousand Pesos (Php360,000.00)25 depending on the packages that the investor chooses. enterprise or venture in a manner that subjects himself to financial loss.24 In the case of DRAGON's scheme, As to the first requisite, there is an investment of money when an investor commits money to an

2s Annex "F" of the Motion, p. 14 Records. 24 SEC v.International Mining Exchange,Inc.,515 F.Supp.1062 19 SRC Rule 26.3.5, Amended Implementing Rules and Regulations of the SRC (2015). 20 328 U.S.293,66 S.Ct.1100,90 L.Ed.1244,163 A.L.R.1043 (1946) 21 SEC v.Glenn W. Turner Enterprises, Inc., 474 F.2d 476,14 U.S.821, 94 (1973). 23 Investment Co. Institute v. Camp,274 F.Supp.624 (D.D.C.1967) 17 Section 3.1., SRC. 18 Section 3.1.b),Id 22 G.R. No.164182,26 February 2008

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or more investors "pool" their resources. Several tests have evolved to determine what constitutes investor in i the investment of funds or (ii the snaring of profits.27 Furthermore,joint participation by is required in order to satisfy the common enterprise element.28 "common enterprise."26 One of these tests is the horizontal commonality approach. Under this test, the determination of whether a transaction satisfies the commonality element of the modified Howey test involves an inquiry into whether the said transaction involves the joint participation of more than one investors in the same investment enterprise,achieved by pooling the invested funds for a common purpose, As to the second requisite, there is a common enterprise,which is deemed created when two (2)

by DRAGON, who decides as to what to do with the money invested. In the case at bar, the money collected from investors are pooled together,being under the control

is made with the view of receiving profits from DRAGON. The prospect of profit is in the form of DRAGON's or participation in earnings resulting from the use of investors' funds. In such cases, the said investors are days. In this setting, an investor is made to expect profits of Php625.00 every 15 days, up to a total of Php2,500.00 in 60 days for an investment of Php1,800.00.30 Moreover,right after the investment of money the investor is given cash vouchers31 or post-dated checks guaranteed for encashment every 15 days,32 jurisprudence, means either capital appreciation resviting from the development of the initial investment, "attracted primarily by the prospects of a return on his investment."29 In this case,the investment of money undertaking to pay 34.72% of the amount invested every 15 days thereafter up to a maximum period of 60 which further proves that the investors are made to expect profits in this scheme. As to the third element, there must be an expectation of profits. Profits, as established by

In this case, it is DRAGON through its agents and persons acting on its behalf who develops, administers, maintains, and promotes the scheme. All that the investor does is invest money and thereafter wait every 15 days for the profit to be received. Lastly, as to the fourth element, the expected profits must arise primarily from the efforts of others.

be considered as engaged in selling and/or offerirg for sale of investment contracts which are considered as securities as provided under the SRC. Finding all the elements of an investment contract present, DRAGON, through its packages, should

In view of the above discussions, we see three (3) violations by DRAGON.

or exempt transactions which are not covered by the requirement of registration, securities shall not be sold or offered for sale or distribution within the Philippines, without a registration statement duly filed with and approved by the Commission.33 Prior to such sale, information on the securities, in such form and with such substance as the Commission may prescribe, shall be made available to each prospective purchaser.34 As discussed above,DRAGON is engaged in the offering and/or selling of securities in the form of investment contracts which need prior registration with the Commission. First, non-registration of securities. Under the SRC, unless what is involved are exempt securities

business of buying or selling securities in the Philippines as a broker or dealer unless registered as such as either broker or dealer without being registered as such. with the Commission.35 In the instant case,DRAGON and/or all persons acting for and in its behalf are acting Second, non-registration as broker or dealer. The law provides that no person shall engage in the

27 Glenn W. Turner Enterprises, supra, citing 69 Am Jur 2d citing Stenger v. R.H. Love Galleries, Inc., 741 F2d 144. 31 AnnexF of the Motionp.11 Records. 33 Section 8.1., SRC. 2 Glenn W. Turner Enterprises, supra, citing Wasnowic .Chicago Bd. of Trade, 352 F Supp 1066. 30 Annex "F" of the Motion, p. 14 Records. 32 Affidavit of Mr. Alicaba, par. 2. 26 In the Matter of Octopus Network, Inc., SEC-PED Case No. 98-2220, 22 May 1998. 29 Power Homes,supra 35 Section 28.1. SRC. 34 Id.

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Incorporation. Nowhere in the primary purpose of DRAGON is it stated that DRAGON can engage in the financing company, and time shares/club shares/membership certificate issuers or selling agents thereof.3 powers,except those conferred by the Corporation Ccde or by its Articles of Incorporation,and except such as are necessary or incidental to the exercise of the powers so conferred. In this case, the scheme involved in its packages is off tangent with the primary purposes of DRAGON, as stated in its Articles of business of soliciting and accepting investmenis and money placements from the public. DRAGON's Certificate of Incorporation states that it is not authorized to undertake business activities requiring a Secondary License from the Commission such as, but not limited to, acting as broker or dealer in securities, government securities eligible dealers (GSED),investment adviser of an investment company,close-end or open-end company, investment house, transfer agent, financial future exchange/broker/merchant, Third, commission of ultra vires acts. No corporation shall possess or exercise any corporate

to cause grave or irreparable injury or prejudice to the investing public.38 the SRC. In relation thereto, two essential requirements must be complied with before a cease and desist order is issued: First, a proper investigation or verification was conducted; and Second, there must be a finding that the act or practice, unless restrained, will operate as a fraud on investors or is otherwise likely Consequently, the issuance of the Cease and Desist Order is justified pursuant to Section 6437 of

the City Mayor of Davao City on the business scheme of Dragon One-Trends Marketing, monitored the activities of DRAGON pursuant to the EIPD's directive, and gathered records and documents showing DRAGON's investment schemes.The certifications of MSRD,CRMD,and CGFD were obtained which indicate that no securities are registered by DRAGON with the Commission, nor is it licensed to sell securities. It is evident therefore that the nature and operations of DRAGON was properly investigated and studied by the EIPD in cooperation with the SEC-DEO. As to the first requirement, the SEC-DEO participated in the formal investigation of the Office of

or likely to cause grave or irreparable injury. The Supreme Court, in a case, held that a transaction similar to the case at hand is not a legitimate investment strategy but a gullibility scheme,which works only as long as there is an ever increasing number of new investors joining the scheme. It is difficult to sustain over a long period of time because DRAGON needs an ever larger pool of later investors to continue paying the money from his second or third round of investors and then absconds before anyone else shows up to collect. Necessarily, these schemes only last weeks or months at most.39 As it is clear that DRAGON'S packages are investment contracts, it is shown that the scheme will operate as a fraud on investors. Hence, the issuance of the CDO is justified. promised profits to early investors. The idea behind this type of swindle is that the "con-man" collects his As to the second requirement, the scheme offered by DRAGON will operate as a fraud on investors

for and in their behalf are hereby ordered to IMMEDIATELY CEASE AND DESIST, UNDER PAIN OF investment contracts or any others of the same nature, as discussed in this Order, until the requisite officers, directors, agents, representatives, conduits, assigns, and any and all persons claiming and acting CONTEMPT, from engaging in activities of selling and/or offering for sale securities in the form of registration statement is duly filed with and approved by the Commission and the corresponding to offer/sell is issued. WHEREFORE, premises considered, DRAGON ONE NETWORK TRENDS CORP., its partners,

the like for and in behalf of the subject corporations. persons or entities found to act as solicitors, information providers, salesmen, agents, brokers, dealers or The Commission will institute the appropriate administrative and criminal action against any

36 AnnexAof the Motion,p.52 records 37 Section 64.1., SRC. The Commission, after proper investigation or verification, motu proprio, or upon verified judgment the act or practice, unless restrained, will operate as a fraud on investors or is otherwise likely to cause grave or irreparable injury or prejudice to the investing public. 39 People v. Romero, et al., G.R. No. 112985, 21 April 1999. complaint by any aggrieved party,may issue a cease and desist order without the necessity of a prior hearing if in its 38 Securities and Exchange Commission vs. Performance Foreign Exchange Corporation, GR No. 154131, 20 July 2006.

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NETWORK TRENDS CORP., its President, General Manager, Corporate Secretary, Treasurer, In-House Of DRAGON ONE NETWORK TRENDS CORP. Commission's Davao Extension Office, is hereby DIRECTED to: 1) serve this Order to DRAGON ONE Counsel or Partners; 2) post copies of the Order at the entrance of the main office and/or branches, if any. The Enforcement and Investor Protection Department, who may seek the assistance of the

newspaper of general circulation and furnished to aii operating departments and offices of the Commission for their information and appropriate action. Let a copy of this Order be also posted in the Commission's website; published in a national

of this Cease and Desist Order. formal compliance report,by way of a pleading,to the Commission En Banc within five (5) days from receipt EIPD,in coordination with other concerned departments, is FURTHER DIRECTED to submit a

within five (5 days from receipt hereof. of the Commission, the parties subject of this Cease and Desist Order may file a request for the lifting thereof In accordance with the provisions of Sec.64.340 of SRC and Sec.10-3 of the 2006 Rules of Procedure

FAIL NOT UNDER PENALTY OF LAW.

SOORDERED

Pasay City, Philippines; 22 September 2016.

A: E TERESITAHERBOSA Charperson

MANUE HUP RTO B.GAITE ANTONIETA F.IBE

Commissioner Commissioner

EPHYRO LUIS B. AMATONG 1WA BA JAMES NDR

Commissioner Commissioner

*On Official Business

4o SRC, Section 64.3. Any person against whom a cease and desist order was issued may, within five (5) days from cease and desist order shall automatically be lifted. receipt of the order, file a formal request for a lifting thereof. Said request shall be set for hearing by the Commission the termination of the hearing. If the Commission fails to resolve the request within the time herein prescribed, the not later than fifteen (15) days from its filing and the resolution thereof shall be made not later than ten (10) days from