Beruflich Dokumente
Kultur Dokumente
-Rights
Definition .rights exercised by the corporation cannot be invoked
by the SDOs and vice versa e.g. the right of the SDOs
- A corporation is an artificial being created by against unreasonable searches and seizures cannot be
operation of law having the right of succession and the invoked by the corporation since the right is personal
powers, attributes and properties expressly authorized with respect to the individuals
by law or incident to its existence.
-Constitutional Rights
*breakdown: .corporations are still entitled to certain constitutional
1. created by law rights: the right against unreasonable searches and
2. Having the right of succession seizures (since it is considered as a person by fiction of
3. Possesses powers, attributes and properties law), Due process. Some rights that cannot be invoked
authorized by law or its articles of incorporation by the corporation e.g. the right against self-
or that which is inherent and incidental to its incrimination
existence
-Torts
Consequences of being a separate personality: .the corporation is liable for torts: when the act
committed by the officer or agent is by the express
-Property direction or authority of the stockholders or members
.it is entitled to properties of its own acting as a body (Directors).
.properties it owns are not that of the stockholders,
directors and officers -Nationality
.the interest of the SDOs over the corporations .The general rule a corporation is a national of the
properties are merely inchoate country where its was incorporated (Place of
Incorporation Test)
-Obligations _in the instance of war (public enemy)- the
.the obligations of the corporation are not that of the nationality of a corporation is determined by the
SDOs and vice versa nationality of the controlling stockholders (Control Test)
De jure- corporation organized in accordance with the Corporation by estoppel- a group of persons which
law holds itself as a corporation and enters into contracts
with third persons on the strength on such appearance
De facto- a corporation where there exists a flaw in its is not allowed to deny its existence in an action under
incorporation. said contracts.
The requisites for existence are: Corporation by Prescription- a corporation that was not
formally organized as such but has been duly
1. existence of valid law of which it maybe recognized by immemorial usage as a corporation with
incorporated
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Corporation
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2. Purposes; primary and secondary Documents filed with for the issuance of the Certificate
Of Registration
3. Place of principal office
1. Articles Of Incorporation
4. Term 2. Treasurers certification: 25% of the authorized
capital stock is subscribed and 25% have been
5. Names, citizenship, residences of the fully paid in cash or property
incorporators 3. Bank certificate covering the paid up capital
4. Letter Authority: authorizing the SEC; examine
6. Names, citizenship, residences of the directors bank deposit, books and records to determine
existence of paid-up capital
(SS-AAA-I/A-DED-EO)
Binding effect of the Provisions of the By-Laws
1. to sue and be sued
A) as to the corporation and its components: binding 2. Succession
upon the corporation but also on its stockholders, 3. Adopt and use corporate seal
members and those officers having direction, 4. Amend Articles of Incorporation
management and control of its affairs. 5. Adopt, amend, repeal by-laws
A) approval of the majority of the board and the 1. to enter into a management contract if any of the
concurrence of the board representing 2/3 of the two insances mentioned above are absent
outstanding capital (or 2/3 of the members, whenever 2. Adopt, amend, repeal the by-laws
applicable is necessary: (EII-DC-IDMA)
NOTE: the same powers as the specific powers however C) without board resolution, the stockholders may by:
the denial of pre-emptive right is not included and,
declare dividends: stock. 1. 2/3 outstanding capital- delegate to the board the
power to amend by-laws
*notes: management contract - am agreement under 2.majority of outstanding capital- revoke the power
which operation control of an enterprise is vested by of the board to amend the by-laws which was
contract with a separate enterprise that performs the previously delegated.
necessary managerial functions in return of a fee.
Instances when the corporation may acquire its own
*to enter into a management contract: shares:
1. stockholder/s representing the same interest of
both managing and the managed corporation -the corporation has unrestricted retained earnings in
sown or control more than 1/3 of total its books to cover the shares to be purchased.