In order to avoid commercialization of franchises and circumvention of Memorandum Circulars 2003-004, Re: CLARIFICATION ON MEMORANDUM CIRCULAR NO. 97-005 WITH RESPECT TO PETITIONS FOR SALE AND TRANSFER, the Board hereby prohibits the simultaneous filing of Sale and Transfer and Dropping and Substitution, except in the following situations:

1. Compliance with MC 2004-030, Re: Substitution of Taxi and Mega Taxi Units; and
2. In case the authorized unit/s which was sold was/were carnapped or suffered a major mechanical breakdown rendering the unit unserviceable.

This Memorandum Circular supersedes any and all issuances inconsistent herewith, and takes effect immediately.

SO ORDERED.

Adopted: 02 Dec. 2005

(SGD.) MARIA ELENA H. BAUTISTA
Chairperson

(SGD.) MA. ELLEN DIRIGE-CABATU
Board Member