Beruflich Dokumente
Kultur Dokumente
1. Separate Personality Rule/Principle/Corporate Entity Theory – Separate Entity, incur liabilities and
obligations other than those who compose it.
1.1.1 Shareholder with 99% stockholdings have NO to right to pursue action involving
the corporation while disregarding the corporation
itself. Interest of Shareholder is merely Inchoate,
MERE EXPECTANCY. (Keyword Inchoate and expectancy)
2. Sole Proprietorship
2.1 Q. Does this have separate personality like a corporation? NO SEPARATE PERSONALITY from
the proprietor.
3. Concession Theory
3.1 Concession Theory – A corporation will not acquire juridical existence without the state
giving its consent thereto, KEYWORK Imprimatur
5.1.2 Can always successfully resist any challenge even by the state regarding legality of
existence
5.2. De Facto – Colorable compliance with the law for it to be organized; Has Cert of
Registration; MUST FILE ARTICLES WITH THE SEC AND ISSUED A CERTIFICATE OF
REGISTRATION to be a de facto.
5.2.1 TEST: Is there a defect in its incorporation despite the fact of issuance of a
Certificate of Registration?
5.2.2 Can RESIST challenge by the state regarding the legality of its existence
5.3.2 ISSUE ONLY AS REGARDS TO LIABILITY and NOT to the existence of a corporation
5.3.3 REMEDY: There is no corporation to demand from. Go directly to the party who
pretended that there is a corporation.
5.3.4 Persons liable: Those who pretended and those who benefited
6.3 Possible bar question: (Timing of a new corporation after a dissolution of a previous
corporation)
6.4 Q. When a corporation is pierced, is it forever pierce? Does it go to its future dealing?
A. No. Piercing is only in case to case basis. It is only as good as that transaction pierced.
7. Intra-Corporate Controversy
7.1 Arises from intra-corporate relationships among stockholders, between officers and
company itself.
7.2.1 Concerned Relationship Test – Corporation and Public; Corp and Stockholders,
members and officers; Corp and State in so far as its license in concered; Relationship
among Shareholders themselves.
7.2.2 Controversy Test – Does this Involved the enforcement of the parties rights and
obligations under the Corporation Code, the Corporations bylaws, and whatever
internal rules a corporation may have.
7.5.2 Example. Offshoot of a case where the nullification of all the election of
the directors is prayed for.
8.2 Q. Will the Buyer be answerable to the property of the Seller sold upon such sale?
9. Libel
9.1 Q. Can a corporation sue for libel and demand moral damages?
10.2 Removal and Voting of director, approval of management contract, Self-dealing contracts,
grant of compensation of directors, Approval of Stock Dividends NOT IN THE LIST!
11.2.1 Except. (1)Stocks Delinquent and (2) Founder Shares with voting rights 5 years
11.3 Q. Pwede bang all shares non-voting? NO! Express provision by the code, dapat daw may
series of shares which have complete voting rights.
12.1 Q. Can a Contributed Property by a stockholder paid thru a subscription payment be taken
away at the whim of said stockholder?
A. No. Already property of the company under the Separate personality rule. Also, the Trust
Fund Doctine
12.2 All property are equity in trust in payment of corporate creditors who has priority over
corporation shareholders
12.3 Distribtution cannot be left to the whims of the corporation in protection of the creditors
13 Change of Name
14.1 Gen Rule, Decisions of the Board of directors are presumed in Good Faith and cannot be
overturn by stockholders
15.1 KEYWORD: VOTING - LIMITED, BROADENED AND DENIED, to the extent of the articles
and bylaws.
16.1 Relation Doctrine – Even if the extention request if filed after the expiration of the term, it
is still deemed made before the expiration of term, provided proper justification.
17. Instances when corporation can be personally held liable for corporate acts
17.1.4 Not report with his knowledge that watered stocks are issued still liable
17.2 No need to pierce because the law itself makes them liable
18.2. RECENT JURIS – NASA BYLAWS LANG ANG LIST OF OFFICERS, CANNOT BE
THRU A BOARD RESOLUTION
19.2 EXCEPTIONS:
19.2.2 ESTOPPEL. When the Corp knowingly permits one of its officers under
apparent authority, the corp holds himself to the public as such. Thus the
corporation will be estopped from denyng such officers agents authority against
those who transacted with it in good faith.
20.1 How?
21 Sequestered Shares
21.2 Q. Corp X is a sequestered. Who has jurisdiction over the intra-corporate contoversyies
21.2.1 A. RTC
21.3.1 No. Despite sequestered status, still outstanding and can vote
21.3.2 GENERAL RULE: Registered Owner has legal standing to use the share to vote.
PCGG is only an administrator of shares
EXCEPTION: PCGG CAN USE SHARES if establish that a) prima facie evidence that
shares are ill gotten, and belong to the state. B) imminent danger that shares is
dissipated and there is necessity for future sequestration.
22.3.2. Members construed to be living (TAN VS. SYCIP) LIVING ANG BASIS THE
QUORUM (SEC. 91)
23. Termination of membership in Non-Stock
23.1 In Non-stock Corporations, A termination of a member may be made ONLY on the Bylaws
(Sec. 91 “Articles OR the bylaws)
24.1.2 Board takes no action on the matter which causes the corporation to
suffer damages.
24.1.2 Being Nominal Parties, Court gives them the power to establish a suit.
24.3 Requisites
24.5 Defendant In the Derivative Suit is the very person who has COMPLETE DOMINION IN THE
CORPORATION, is Exhaustion still need to be complied?
26.1 Substance Test – Bring to Phil the body and substance of corporation to the Philippines
26.2 Continuity Test - Indication that activities is Continuing
26.2.2 Regardless of Volume. Even if only one transaction, but indication to do business
is apparent, deemed doing business
29. Rehabilitation
29.2.1 Whether or not financial situation is serious and there is imment danger that it
will lose its assets without a receiver
29.2.2 Misconduct of Officer PER SE does not justify the appointment of a receiver.
29.4 Effects
29.4.1 Stay Order/Suspension Order – ALL CLAIMS whether for MONEY OR OTHERWISE
29.4.4 ALL PHASES OF SUIT EVEN IF the claim is with the supreme court
30.1.2 Finding that the act complained of is fraud to investors or damage to investing
public
30.2 Cease and Deceased Order must be signed by the quorum. The issuance of a CDO with
only 1 signature of a chairman of the SEC is irregular.
31.2.1 Referred to be filed first to SEC because this is a specialized dispute under the
doctrine of primary jurisdiction
31.2.2 The SEC will refer then to DOJ for proper execution
EXCEPTIONS
32.EXEMPT SECURITIES
32.2.2 Character
DEPENDS.
35. Insider
35.2 Reason: Protect investors against fraud committed when an insider using secret
Information takes advantage of uninformed investors.
35.3 2 facts a) Inherent unfairness when a party takes advantage of such position and b)
Relationship of insider to the acquisition of such information
37. Merger
37.1 Employees Automatically assumed employment contract. SEC must Approved Merger by a
the absorbing company. However, absorbing company can terminate by reason of just and
authorized cause
37.2 Debts are acquired by the absorbing corporation AUTOMATICALLY even without a contract
Remedy of Buyer whos name is not recorded – compel seller to acquire dividends