UNIVERSITY OF THE EAST

CORPORATION LAW
Atty. Karl William Louise L. Soriano

Course Outline
Week 1 – Introduction
A. Kinds of Business Organizations
a. Sole Proprietorship
b. Partnership
c. Joint Venture
d. Corporation
Week 2
I. Definition and Attributes of a Corporation

A. Definition
B. Attributes
C. Advantages of a corporation as a form of business
D. Disadvantages
E. Distinctions between a partnership and a corporation
F. Government powers in relation to corporations
Cases:
1. LBC Express, Inc. vs. CA – G.R. No. 108670, 21 September 1994;
2. Filipinas Broadcasting Network vs. Ago Medical and Educational Center
– G.R. No. 141994, 17 January 2005;
3. Cystal vs. BPI – G.R. No. 172428, 28 November 2008

II. Classification of Corporations

A. Stock and Non-Stock

a. Collector vs. Club Filipino de Cebu – G.R. No. L-12719, 31 May 1962
B. Corporations created by special laws
a. PNOC – EDC vs. NLRC – G.R. No. 79182, 11 September 1991
C. Public and Private
a. National Coal vs. C.I.R. – 146 Phil. 583
b. Rizal Commercial Banking Corporation vs. Hon. Pacifico de Castro –
G.R. No. L-34548, 29 November 1988
 D. Ecclesiastical and lay
E. Aggregate and Sole
F. Close and Open
G. Domestic and Foreign
a. Nationality of Corporations
i. Place of Incorporation Test
ii. Control test
iii. Grandfather Rule
1. Narra Nickel Mining and Development Corp, et. al vs.
Redmont Consolidated Mines Corp. – G.R. No. 195580, 21
April 2014
H. Parent/Holding, Subsidiaries and Affiliates
I. Quasi-Public
J. Quasi Corporation
K. De Jure Corporation
L. De Facto Corporation
M. Corporation by Estoppel

III. Formation and Organization

A. Process of Incorporation
B. Contents of the Articles of Incorporation
a. Prefatory Paragraph
b. Corporate name
i. Red Line Transport vs. Rural Transit – G.R. No. 41570, 06 September
1934
ii. Universal Mills vs. Universal Textile Mills – G.R. No. L-28351, 28 July
1977
iii. Lyceum of the Philippines vs. C.A. - G.R. No. 101897, 05 March 1993
iv. Philips Exports B.V. vs. C.A. – G.R. No. 96161, 21 February 1992;
v. Ang Mga Kaanib sa Iglesia ng Dios Kay Kristo Hesus, H.S.K. sa
Bansang Pilipinas vs. Iglesia ng Dios Kay Cristo Jesus – G.R. No.
137592, 12 December 2001;
vi. Zuellig Freight and Cargo Systems vs. NLRC – G.R. No. 157900, 22
July 2013
c. Purpose clause
d. Principal Office
i. Clavecilla Radio Systems vs. Antillon – 19 SCRA 379
ii. Hyatt Elevators and Escalators Corporation vs. Goldstar Elevators,
Phils., Inc. – G.R. No. 161026, 24 October 2005
e. Term of Existence
f. Incorporators
 g. Directors/Trustees
h. Capitalization
i. Shares of Stock and classification
ii. Purpose of Classification
iii. Common Stocks
iv. Preferred Stocks
v. Par and no-par value
vi. Voting and Non-Voting
vii. Founder’s shares
viii. Redeemable Shares
ix. Treasury Shares
1. Commissioner vs. Manning – 66 SCRA 15 (06 August 1975)
x. Capital Requirements
i. Restrictions and preferences
j. No transfer clause
k. Treasurer
l. Execution Clause
m. Acknowledgment
n. Grounds for disapproval

C. Commencement of corporate existence

a. Cagayan Fishing vs. Sandiko – G.R. No. L-43350, 23 December 1937

D. Defectively formed corporations

a. De facto Corporation
i. Municipality of Malabang vs. Benito – G.R. No. L-28113, 28 March
1969
ii. Hall vs. Piccio – G.R. No. L-2598, 29 June 1950
E. Corporation by Estoppel
a. Lozano vs. De Los Santos – G.R. No. 125221, 19 June 1997
b. Albert vs. University Publishing – G.R. No. L-19118, 30 January 1965
c. Salvatierra vs. Garlitos – G.R. No. L-11442, 23 May 1958
d. Chang Kai Shek vs. CA – G.R. No. L-58028, 18 April 1989
e. Asia Banking vs. Standard Products – 46 Phil. 144, 11 September 1924
f. International Express Travel vs. CA – 343 SCRA 674, 19 October 2000
g. Georg Grotjahn vs. Insani – 235 SCRA 216, 10 August 1994

F. Organization and Commencement of Business

a. Corporate Organization
b. Commencement of Business Transactions