Beruflich Dokumente
Kultur Dokumente
COURT OF APPEALS
211 SCRA 470 (1992)
ISSUE
1. Whether petitioners contention were correct as regards the piercing of the corporate veil.
2. Whether petitioners were correct in their contention that they should be respected as regards their
occupancy since they own an aliquot part of the corporation.
RULING
1.Petitioners contention to pierce the veil of corporate fiction is untenable. As aptly held by the court:
..The separate personality of a corporation may ONLY be disregarded when the corporation is used as a
cloak or cover for fraud or illegality, or to work injustice, or when necessary to achieve equity or when
necessary for the protection of creditors.
2. As regards petitioners contention that they should be respected on their occupancy by virtue of an
aliquot part they own on the corporation as stockholders, it also fails to hold water. The court held that
properties owned by a corporation are owned by it as an entity separate and distinct from its members.
While shares of stocks are personal property, they do not represent property of the corporation. A share of
stock only typifies an aliquot part of the corporations property, or the right to share in its proceeds to that
extent when distributed according to law and equity, but its holder is not the owner of any part of the
capital of the corporation. Nor is he entitled to the possession of any definite portion of its property or
assets. The holder is not a co-owner or a tenant in common of the corporate property.