FOR NOVEMBER 13 SESSION

I. READING ASSIGNMENTS
1. Codal Section 2, Corporation Code
2. Textbook Villanueva, Chapters 1-3
3. SC Cases see outline below

II. GRADED RECITATION

OUTLINE:
1. Introduction
2. Brief History of Philippine Corporate Law
- Sociedades Anonimas
- Cuentas en Participacion
- Act 1459
- BP Blg. 68
3. Statutory definition of the Corporation Sec. 2, Corporation Code
4. Theories on the Formation of a Corporation
- Theory of Concession (vis--vis Genossenschaft Theory) Tayag, GR L-23145, Nov. 29,
1968; Torres vs. CA - GR 120138, Sept. 5, 1997;
- Theory of Enterprise Entity
5.
Tri-Level Existence in the Corporate Setting
6. Corporation as a Creature of the Law
- Constitutional provision Sec. 16, Art. XII - Harden vs. Benguet Cons. Mining Co.,

GR L-37331, March 18, 1933; National Devt Company vs. Phil Veterans, GR
84132-33, Dec. 10, 1990; Philippine Society vs. COA, GR 169752, Sept. 25, 2007;
MIAA vs. City of Pasay, GR 163072, April 2, 2009; Boy Scouts of the Phils vs.
COA, GR 177131, June 7, 2011; Liban vs. Gordon, GR 175352 (both DECISION
penned by Justice Antonio Carpio & RESOLUTION penned by Justice Teresita
De Castro);
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10.

- Civil Code Provisions Art. 44 and 45

- Franchises of Corporations - J.R.S. Business Corp., GR L-19891, July 31, 1964;
Attributes of the Corporation
- Artificial Being - Vazquez vs. Borja, GR L-48930, Feb. 23, 1944;
- Creature of the Law
- Right of Succession
- Creature of Enumerated Powers, Attributes and Properties - Monfort Hermanos
Agricultural Devt. Corp., GR 152542, July 8, 2004;
Advantages of the Corporate Medium
- Strong juridical personality
- Centralized management
- Limited liability to investors
- Free transferability of units of investment
- Advantages over unregistered associations
Disadvantages of the Corporate Medium
- Complicated and costly formation and maintenance (no longer true!)
- Lack of personal element and abuse of corporate management
- Limited liability hits innocent victims
- Double taxation
Comparing the Corporation with other media of Business Endeavors
- Sole Proprietorships
- Partnerships

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- Business Trusts
- Joint Ventures
- Cooperatives
Entitlement of the Corporation to Constitutional Guarantees
- Right to Due Process Smith, Bell & Company, GR 15574, Sept. 17, 1919;
- Right against Unreasonable Searches & Seizures, Stonehill vs. Diokno, GR L-19550, June
19, 1967;
- Right against Self-Incrimination, BASECO vs. PCGG, GR 75885, May 27, 1987;
Corporate Torts - PNB vs. CA, GR L-27155, May 18, 1978;
Corporate Negligence (Corporate Responsibility) PSI vs. Agana, GR 126297
- DECISION January 31, 2007;
- FIRST MR February 11, 2008;
- SECOND MR February 2, 2010;
Criminal Liability - The Executive Secretary vs. CA, GR 131719, May 25, 2004;
Criminal Liability - People vs. Tan Boon Kong, GR L-35262, March 15, 1930;
Criminal Liability - Sia vs. People, GR L-30896, April 28, 1983;
Trust Receipts (Criminal) - Ong vs. CA, GR 119858, April 29, 2003;
Trust Receipts (Criminal) - Ching vs. Sec. of Justice, GR 164317, Feb. 6, 2006;
Trust Receipts (Civil) The Consolidated Bank, GR 114286, April 19, 2001;
Civil Action - Cometa vs. CA, GR 124062, Jan. 21, 1999;
Corporate Criminal Section 14 of AMLA of 2001
Moral Damages - ABS-CBN Broadcasting Corp. vs. CA, GR 128690, Jan. 21, 1999;
Moral Damages - Crystal vs. BPI, GR 172428, Nov. 28, 2008;
Moral Damages - Filipinas Broadcasting Network, GR 141994, Jan. 17, 2005;
Nationality of Corporations
- Place of Incorporation Test
- Control Test Narra Nickel vs. Redmont Consolidated, GR 195580, April 21, 2014
- Grandfather Rule
SEC Opinion No. 07-18 (uploaded in FB)
SEC Opinion No. 11-44 (uploaded in FB)
SEC Opinion No. 12-02 (uploaded in FB)
Constitutional Limit Register of Deeds of Rizal, GR L-6776, May 21, 1955;
Constitutional Limit Roman Catholic Apostolic of Davao, GR L-8451, Dec. 20, 1957;
Corporations disqualified from owning alienable lands of the public domain
Public Utilities People vs. Quasha, GR L-6055, June 12, 1953;
Public Utilities Gamboa vs. Teves, GR 176579
- DECISION June 28, 2011;
- RESOLUTION October 9, 2012;
- SEC MEMORANDUM CIRCULAR NO. 8, s. of 2013 - Guidelines on compliance with
the Filipino-Foreign ownership requirements prescribed in the Constitution and/or existing
laws by corporations engaged in nationalized and partly nationalized activities (uploaded
in FB);
Classification of Corporations
- In relation to the State
- As to Place of Incorporation
- As to Legal Status
- As to Existence of Shares of Stocks
- As to Relationship of Management and Control