Viguilla, et. al. v. Philippine College of Criminology, Inc., G . R. No . .

200094,June10,2013

DOCTRINE/S:

The dissolution will not terminate the liabilities incurred by the dissolved
corporation.
Section 145 of the Corporation Code clearly provides that "no right or remedy in
favor of or against any corporation, its stockholders, members, directors, trustees,
or officers, nor any liability incurred by any such corporation, stockholders,
members, directors, trustees, or officers, shall be

removed or impaired either by the subsequent dissolution of said corporation."

FACTS:

PCCr is a non-stock educational institution, while the petitioners were

janitors, janitresses and
supervisor in the Maintenance Department of PCCr. The petitioners were
made to understand that they are under the Metropolitan Building Services,
Inc. (MBMSI) which is a corporation engaged in providing janitorial services.

Sometime in 2008, PCCr discovered that the Certificate of Incorporation of

MBMSI had been revoked as of July 2, 2003. PCCr then terminated the
services of MBMSI on 2009 which resulted in the dismissal of the petitioners.
They executed releases, waivers and quitclaims in favor of the company
upon their dismissal.

An illegal dismissal complaint was then filed against PCCr by the

petitioners contending that it is their real employer and not MBMSI.

Petitioners also assailed the validy of the releases, waivers and quitclaims,
stating that MBMSI had no legal personality to incur civil liabilities as it did not
exist as a corporation on account of its dissolution in 2003.
ISSUE/S: WON executed releases, waivers and quitclaims are valid and
binding?
HELD:
YES. The executed releases, waivers and quitclaims are valid and binding
notwithstanding the revocation of MBMSIs Certificate of Incorporation. The
revocation does not result in the termination of its liabilities. Section 122 of
the Corporation Code provides for a three-year winding up period for a
corporation whose charter is annulled by forfeiture or otherwise to continue
as a body corporate for the purpose, among others, of settling and closing its
affairs.
Even if said documents were executed in 2009, six (6) years after MBMSIs
dissolution in 2003, the same are still valid and binding upon the parties and
the dissolution will not terminate the liabilities incurred by the dissolved
corporation pursuant to Sections 122 and 145 of the Corporation Code
A corporation is allowed to settle and close its affairs even after the winding
up period of three (3) years.
There is no time limit within which the trustees must complete a liquidation
placed in their hands. What is provided in Section 122 of the Corporation
Code is that the conveyance to the trustees must be made within the three-
year period. But it may be found impossible to complete the work of
liquidation within the three-year period or to reduce disputed claims to
judgment. The trustees to whom the corporate assets have been conveyed
pursuant to the authority of Section 122 may sue and be sued as such in all
matters connected with the liquidation.
Furthermore, Section 145 of the Corporation Code clearly provides that "no
right or remedy in favor of or against any corporation, its stockholders,
members, directors, trustees, or officers, nor any liability incurred by any such
corporation, stockholders, members, directors, trustees, or officers, shall be
removed or impaired either by the subsequent dissolution of said
corporation." Even if no trustee is appointed or designated during the three-
year period of the liquidation of the corporation, the Court has held that the
board of directors may be permitted to complete the corporate liquidation by
continuing as "trustees" by legal implication.