BUS.ORG2 OUTLINE NO.

2 (2016)
Prof. M.I.P. Romero

lV. CLASSES OF CORPORATIONS UNDER THE CORP. CODE

1 Sec. 3, 87, 88 --- stock and non-stock corporation
Valley Golf Club v. Vda. De Caram 585 SCRA 218 (2009)
Coll. of Int. Rev. v. Club Filipino
5 SCRA 321 (1962)
2 Other classes of corporations under the Corporation Code:
Close corporation Sec. 96
Special corporations Educational, religious (Title XIII)
Foreign corporations --- Sec. 123
Others: subsidiary (wholly-owned v. majority owned), affiliate,
parent/holding company, joint venture corporation, open vs.
close, lay vs. religious, eleemosynary vs. civil corp., etc.
GOVERNED primarily by specific titles, then suppletorily by the
other applicable provisions of the Corp. Code
V. CREATION OF CORPORATION
1 Promotion (relate to Sec. 3.10. of Securities Regulation Code)
Rizal Light &Ice,Inc. v. Pub. Serv. Comm
25 SCRA 285
McArthur v. Times Printing Co.
31 Am. St. Rep. 653
Cagayan Fishing v. Sandiko
65 Phil 223
Caram v. CA 151 SCRA 373 (1987)
Old Dominion Copper Mining Co. v. Bigelow
203 Mass. 159
2. Incorporation
3. Formal organization versus commencement of business Sec. 19
VI. INCORPORATION
1) Steps in incorporation

2) Sections 5, 10 19, 88, 96, 97

3) Articles of Incorporation
a) Sec. 14, 15
b) Amendment of A/I Sec. 16, Relate to:
Sec. 36.4 power to amend
Sec. 6 voting rights of non-voting shares
Sec. 81[1]--- appraisal right
Secs. 37, 38, 103 re written assent
c) Binding effect of amendment
Phil. Trust Co. v. Rivera
44 Phil. 469
(1923)
Marcus v. RH Macy
74 N.E. 2d 228 (1947)
IglesiaEvangelica v. Bishop Lazaro (G.R. 184088, July 6, 2010)
4) Citizenship requirements --- Sec. 140
--- pertinent provisions of the 1987 Constitution
--- meaning of CAPITAL under Sec. 11, Art. 12 of the Constitution
Gamboa v. Teves, et al (GR 176579; June 28, 2011 and Oct. 9, 2012)
SEC Memo Circ. No. 8, s2013 (Guidelines in Fil-Foreign ownership)
-- Foreign Investments Act (FIA) of 1991, as amended
--- other laws imposing maximum foreign equity
--- Philippine national under the FIA
--- under the BSP
--- Phil. corporation under the Corp. Code
--- Foreign corporation under the Corp. Code
--- Control Test v. Grandfather Rule
Narra Nickel Mining v. Redmont (G.R. 195580; April 21, 2014)
--- Nationality of corporation sole
Roman Catholic Apostolic Admin.of Davao (102 Phil.596)
5) Residence of corporation Young Auto Supply Co. v. CA

(1993) 223 SCRA 670

7) Name of corporation (SEC Memo Circ. 14, Series of 2000)

Republic Planters Bank v. CA GR 93073
(Dec. 21,1992)

Philips Export B.V. v. CA

(1992) 206 SCRA 457
Lyceum of the Phils. v. CA
(1993) 219 SCRA 610
Armco Steel Corp. v. SEC
(L-54580; Dec. 29, 1987)
Javier & Sons, Inc. v. CA
(2005) 462 SCRA 36
Industrial Refractories Corp. v. CA
(2002) 390 SCRA 252

P.C.

8) De jure corporations requisites, powers, liabilities, validity

9) De facto corporations Sec. 20
(requisites, basis, powers, rights, liabilities, validity )
Pioneer Insurance v. CA
(GR 84157) 175 SCRA 668 (1989)
Municipality of Malabang v. Benito
(1969) 27 SCRA 533
Hall v. Piccio
(1950) 86 Phil. 603
Cagayan Fishing. v. Sandiko
GR L-43350 (12/23/1937)
Harill v. Davis
(1909) 168 F. 187
10 ) Corporation by Estoppel Sec. 21 (rationale, liabilities, validity)
Asia Banking Corp. v. Std. Products Co. (1924) 46 Phil. 145
Cranson v. IBM Corp.(1964) 234 Md. 477; 200 A. 2d 33
Salvatierra v. Garlitos et al.(1958) 103 Phil. 757
Albert v. University Publishing Co., Inc. (1965) 13 SCRA 84
Chiang Kai Shek School v. CA
(1989) 172 SCRA 389
Lim Tong Lim v. Phil. Fishing Gear
(1999) 317 SCRA 728
Express Travel v. CA
(2000) 343 SCRA 674
11) Corps. that are neither de jure, de facto, nor by estoppel

Intl