Vicente C. Ponce, petitioner v. Alsons Cement Corporation and Francisco M. Giron, Jr.

, respondents
GR no. 139802 December 10, 2002 Quisumbing, J. SV: Francisco Gaid o ned s!ares in "!e cemen" cor#ora"ion and "rans$erred "!ese s!ares "o %once. &o e'er, "!e "rans$er as no" regis"ered in "!e boo(s o$ "!e cemen" cor#ora"ion. )o cer"i$ica"es o$ s"oc( since "!e a**eged "rans$er ere issued "o %once !ic! #rom#"ed !im "o $i*e a com#*ain" $or +andamus. S,: "!e "rans$er needs "o be recorded in "!e s"oc( and "rans$er boo( be$ore %once can as( $or "!e issuance o$ cer"i$ica"es o$ s"oc(s. -s be" een "!e cor#ora"ion on "!e one !and, and i"s s!are!o*ders and "!ird #ersons on "!e o"!er, "!e cor#ora"ion *oo(s on*. "o i"s boo(s $or "!e #ur#ose o$ de"ermining !o i"s s!are!o*ders are. /" is on*. !en "!e "rans$er !as been recorded in "!e s"oc( and "rans$er boo( "!a" a cor#ora"ion ma. rig!"$u**. regard "!e "rans$eree as one o$ i"s s"oc(!o*ders. 1. 2. 0n 21 Januar. 1992, Vicen"e ,. %once, $i*ed a com#*ain" i"! "!e S3, $or mandamus and damages agains" -*sons ,emen" ,or#ora"ion and i"s cor#ora"e secre"ar. Francisco +. Giron, Jr. /n !is com#*ain", %once a**eged, among o"!ers, "!a" o o 4"!e *a"e Faus"o G. Gaid as an incor#ora"or o$ Vic"or. ,emen" ,or#ora"ion 5V,,6,!a'ing subscribed "o and $u**. #aid 239,100 s!ares o$ said cor#ora"ion7 "!a" on 8 Februar. 1928, %once and Faus"o Gaid e8ecu"ed a 4Deed o$ 9nder"a(ing4 and 4/ndorsemen"4 !ereb. Gaid ac(no *edges "!a" %once is "!e o ner o$ said s!ares and !e as "!ere$ore assigning:endorsing "!e same "o %once7 "!a" on 10-#ri* 1928, V,, as renamed F*oro ,emen" ,or#ora"ion 5F,,6 and *a"er renamed "o -*sons ,emen" ,or#ora"ion 5-,,6 on 22 0c"ober 1990 "!a" $rom "!e "ime o$ incor#ora"ion o$ V,, u# "o "!e #resen", no cer"i$ica"es o$ s"oc( corres#onding "o "!e 239,100 subscribed and $u**. #aid s!ares o$ Gaid ere issued in "!e name o$ Faus"o G. Gaid and:or %once7 and "!a" des#i"e re#ea"ed demands, -,, and Giron re$used and con"inue "o re$use i"!ou" an. ;us"i$iab*e reason "o issue "o %once "!e cer"i$ica"es o$ s"oc(s corres#onding "o "!e 239,100 s!ares o$ Gaid, in 'io*a"ion o$ %once<s rig!" "o secure "!e corres#onding cer"i$ica"e o$ s"oc( in !is name.

o o

3. =. 1. 2.

-,, and Giron mo'ed "o dismiss. S3, &earing 0$$icer 3nri>ue ?. F*ores, Jr. gran"ed "!e mo"ion "o dismiss in an 0rder da"ed 29 Februar. 1992. %once a##ea*ed "!e 0rder o$ dismissa*. 0n 2 Januar. 199@, "!e ,ommission 3n Aanc re'ersed "!e a##ea*ed 0rder and direc"ed "!e &earing 0$$icer "o #roceed i"! "!e case. /n ru*ing "!a" a "rans$er or assignmen" o$ s"oc(s need no" be regis"ered $irs" be$ore i" can "a(e cogniBance o$ "!e case "o en$orce %once<s rig!"s as a s"oc(!o*der, "!e ,ommission 3n Aanc ci"ed "!e Su#reme ,our"<s ru*ing in -be;o 's. De *a ,ruB, 1=9 S,R- 21= 5198@6. C!eir mo"ion $or reconsidera"ion !a'ing been denied, -,, and Giron a##ea*ed "!e decision and "!e reso*u"ion den.ing "!eir +R "o "!e ,-

@.

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/n i"s decision, "!e ,- !e*d "!a" in "!e absence o$ an. a**ega"ion "!a" "!e "rans$er o$ "!e s!ares be" een Gaid and %once as regis"ered in "!e s"oc( and "rans$er boo( o$ -,,, %once $ai*ed "o s"a"e a cause o$ ac"ion. C!us, said "!e a##e**a"e cour", 4"!e com#*ain" $or mandamus s!ou*d be dismissed $or $ai*ure "o s"a"e a cause o$ ac"ion.4 %once<s mo"ion $or reconsidera"ion as denied in a reso*u"ion da"ed 10 -ugus" 1999. %once $i*ed "!e #e"i"ion $or re'ie on cer"iorari

ISSUE: Sho ld the shares !e iss ed in Ponce"s name# $% Faus"o Gaid as an origina* subscriber o$ -,,<s 239,100 s!ares. From "!e -mended -r"ic*es o$ /ncor#ora"ion a##ro'ed on 9 -#ri* 1991, eac! s!are !ad a #ar 'a*ue o$ %1.00 #er s!are. %once !ad no" made a #re'ious re>ues" u#on "!e cor#ora"e secre"ar. o$ -,,, Francisco +. Giron Jr., "o record "!e a**eged "rans$er o$ s"oc(s. %ursuan" "o Sec"ion 23 o$ "!e ,or#ora"ion ,ode, a "rans$er o$ s!ares o$ s"oc( no" recorded in "!e s"oc( and "rans$er boo( o$ "!e cor#ora"ion is non&e'istent as (ar as the corporation is concerned. -s be" een "!e cor#ora"ion on "!e one !and, and i"s s!are!o*ders and "!ird #ersons on "!e o"!er, "!e cor#ora"ion *oo(s on*. "o i"s boo(s $or "!e #ur#ose o$ de"ermining !o i"s s!are!o*ders are. /" is on*. !en "!e "rans$er !as been recorded in "!e s"oc( and "rans$er boo( "!a" a cor#ora"ion ma. rig!"$u**. regard "!e "rans$eree as one o$ i"s s"oc(!o*ders. From "!is "ime, "!e conse>uen" ob*iga"ion on "!e #ar" o$ "!e cor#ora"ion "o recogniBe suc! rig!"s as i" is manda"ed b. *a "o recogniBe arises. &ence, i"!ou" suc! recording, "!e "rans$eree ma. no" be regarded b. "!e cor#ora"ion as one among i"s s"oc(!o*ders and "!e cor#ora"ion ma. *ega**. re$use "!e issuance o$ s"oc( cer"i$ica"es in "!e name o$ "!e "rans$eree e'en !en "!ere !as been com#*iance i"! "!e re>uiremen"s o$ Sec"ion 2= o$ "!e ,or#ora"ion ,ode 5 !ic! re>uires $or "!e subscri#"ion be #aid u# $irs" be$ore cer"i$ica"es o$ s"oc(s are issued6. o /" ou*d be di$$eren" i$ "!e #e"i"ioner is "!e o ner o$ "!e s"oc( !ic! !e soug!" "o "rans$er "o a "!ird #ar".. &e ou*d be en"i"*ed "o mandamus.

C!e s"oc( and "rans$er boo( is "!e basis $or ascer"aining "!e #ersons en"i"*ed "o "!e rig!"s and sub;ec" "o "!e *iabi*i"ies o$ a s"oc(!o*der. D!ere a "rans$eree is no" .e" recogniBed as a s"oc(!o*der, "!e cor#ora"ion is under no s#eci$ic *ega* du". "o issue s"oc( cer"i$ica"es in "!e "rans$eree<s name. - #e"i"ion $or mandamus $ai*s "o s"a"e a cause o$ ac"ion !ere i" a##ears "!a" "!e #e"i"ioner is no" "!e regis"ered s"oc(!o*der and "!ere is no a**ega"ion "!a" !e !o*ds an. #o er o$ a""orne. $rom "!e regis"ered s"oc(!o*der, $rom !om !e ob"ained "!e s"oc(s, "o ma(e "!e "rans$er. o %once ci"ed Rural Bank of Salinas v. CA bu" "!a" case is no" a##*icab*e because in "!a" case "!e #erson as(ing $or regis"ra"ion o$ "!e "rans$er !ad a #o er o$ a""orne..

C!e deed o$ under"a(ing i"! indorsemen" #resen"ed b. %once does no" es"ab*is!, on i"s $ace, !is rig!" "o demand $or "!e regis"ra"ion o$ "!e "rans$er and "!e issuance o$ cer"i$ica"es o$ s"oc(s. 9nder "!e #ro'isions o$ our s"a"u"e "ouc!ing "!e "rans$er o$ s"oc(, "!e mere indorsemen" o$ s"oc( cer"i$ica"es does no" in i"se*$ gi'e "o "!e indorsee suc! a rig!" "o !a'e a "rans$er o$ "!e s!ares o$ s"oc( on "!e boo(s o$ "!e com#an. as i** en"i"*e !im "o "!e ri" o$ mandamus "o com#e* "!e com#an. and i"s o$$icers "o ma(e suc! "rans$er a" !is demand, because, under suc! circums"ances "!e du"., "!e *ega* ob*iga"ion, is no" so c*ear and indis#u"ab*e as "o ;us"i$. "!e issuance o$ "!e ri". -gain "!e genera* ru*e: as be" een "!e cor#ora"ion on "!e one !and, and i"s s!are!o*ders and "!ird #ersons on "!e o"!er, "!e cor#ora"ion *oo(s on*. "o i"s boo(s $or "!e #ur#ose o$ de"ermining !o i"s s!are!o*ders are, so "!a" a mere indorsee o$ a s"oc( cer"i$ica"e, c*aiming "o be "!e o ner, i** no" necessari*. be

recogniBed as suc! b. "!e cor#ora"ion and i"s o$$icers, in "!e absence o$ e8#ress ins"ruc"ions o$ "!e regis"ered o ner "o ma(e suc! "rans$er "o "!e indorsee, or a #o er o$ a""orne. au"!oriBing suc! "rans$er. Re*iance on "!e -be;o case is a*so rong since "!e s"a"emen" E"!ere is no re>uiremen" "!a" a s"oc(!o*der o$ a cor#ora"ion mus" be a regis"ered one in order "!a" "!e Securi"ies and 38c!ange ,ommission ma. "a(e cogniBance o$ a sui" see(ing "o en$orce !is rig!"s as suc! s"oc(!o*der among !ic! is "!e s"oc( #urc!aserFs rig!" "o secure "!e corres#onding cer"i$ica"e in !is name,G re$ers "o "!e issue o$ ;urisdic"ion. C!us, absen" an a**ega"ion "!a" "!e "rans$er o$ s!ares is recorded in "!e s"oc( and "rans$er boo( o$ -,,, "!ere a##ears no basis $or a c*ear and indis#u"ab*e du". or c*ear *ega* ob*iga"ion "!a" can be im#osed u#on "!e cor#ora"e secre"ar., so as "o ;us"i$. "!e issuance o$ "!e ri" o$ mandamus "o com#e* !im "o #er$orm "!e "rans$er o$ "!e s!ares "o %once.

Jus"in Aenedic" -. +ore"o. 5ada#"ed $rom "!e in"erne".6