BUSINESS ORGANIZATION I
COURSE OUTLINE
1 INTRODUCTION
General
Kinds of Business Organization
Sole Proprietorship,
Partnership
Joint Venture
Corporation
Historical Background
DEFINITION AND ATTRIBUTES
Case: Filipinas Broadcasting vs. Ago Medical Center (GR No. 141954, Jan . 17, 2005)
‘Advantages of the corporate form of business
Disadvantages
Distinctions between a corporation and partnership
Government power in relation to corporations
CLASSIFICATION OF CORPORATIONS
‘Stock and non-stock
Case: Collector vs. Club Filipino de Cebu (SSCRA312)
Corporations Created by Special Law
Case: PNOC-EDC vs. NLRC (201SCRA487)
Public and Private
Case: National Coal Corporation vs. C.LR. (146Phil.583)
Ecclesiastical and Lay
Aggregate and Sole
Close and Open
Parent/holding, Subsidiaries and Affiliates
Public and Private
Quasi-public
De jure corporation
De facto corporation
Corporation by estoppels
FORMATION AND ORGANIZATION
Process of Incorporation
Contents of the Articles of Incorporation,
Prefatory Paragraph
Corporate Name
Cases: Red Line Transport vs. Rural Transit (60Phil.549)
Universal Mills vs. Universal Textile Mills (78SCRA62)
Lyceum of the Philippines vs. C.A, (219SCRA610)Philipps Export B.V. vs. C.A, (206SCRA4S7)
Purpose Clause
Principal Office
Case: Clavecilla Radio Systems vs. Antillon (19SCRA379)
Term of existence
Incorporators
Qualifications and disqualifications
Directors and Trustees ,
Qualifications and disqualification
Capitalization
Shares of stock and classification
Purpose of classification
‘Common shares
Preferred shares
Par and no-par value shares .
Voting and non-voting shares
Founders’ shares
Redeemable shares
‘Treasury shares
Case: Commissioner vs. Manning (68SCRA14)
Restrictions and Preferences
No-transfer Clause
Treasurer-in-trust
Execution Clause
Acknowledgment
Treasurer's Affidavit
Grounds for disapproval
Commencement of Corporate Existence
Case: Cagayan Fishing vs. Sandiko (65Phil.233) 5
Defectively formed corporations
De facto corporations
Case: Municipality of Malabang vs. Benito (27SCRA533)
Hall vs. Piccio (86PhIl.757)
Chiang Kai Shiek vs. C.A. (172SCRA389)
‘Asia Banking Corp. vs. Standard products (46Phil.144)
Salvatierra vs. Garlitos (103PhiI757)
International Express Travel and Tours vs. C.A. (343SCRA674)
Georg Grotjahn Vs. Isnani (235SCRA216
Organization and Commencement of Business
Corporate Organization
Commencement of Business Transaction
‘CORPORATE CHARTER AND ITS AMENDMENTS‘The Corporate Charter
The Corporate Entity Theory
Cases: Sulo ng Bayan vs. Araneta (72SCRA347)
Caram vs. C.A. (151SCRA372)
Rustan Pulp and Paper Mill vs. C.A. (214SCRA66S)
Cruz vs, Dalisay (1525CRA&82)
Palay Inc. vs Clave (124SCR638)
Soriano vs. CA. (174SCRA195)
: Piercing the Veil of Corporate Fiction
Cases: Palacio vs. Fely Transportation Co. SSCRA1011)
Marvel Bldg. vs. David 94Phil376)
Yutivo & Sons vs. C.T.A. (1SCRA160)
Commissioner vs. Norton & Harrison (11SCRA7140,
La Campana Coffee vs. Kaisahan ng mga Manggagawa (93Phil160)
Emilio Cano vs. C.LR. 13SCRA290)
Telephone Engineering vs. WCC (104SCRA354)
Claparols vs C.1.R. (65SCRA613)
Concept Builders vs. N.L.R.C. (257SCRA149)
‘McConnel vs. C.A. (1SCRA722)
Tan Boon Bee vs Jarencio (163SCRA205)
Cease vs. C.A. 93SCRA483)
When not Justified
Cases: Remo Jr. vs. LA.C. (172SCRA405)
Del Rosario vs. NLRC (187SCRA777)
Indophil Textile Mills vs. Galica (205SCRA697)
PNB vs, Ritratto Group (362SCRA216)
Pacfic Rehaus Corp. vs C.A. (719SCRAG65)
‘ Yu vs NLRC (245SCRA134) :
‘Amendment of the Corporate Charter
Special Amendments
Provisions Subject to Amendments
Change in Corporate Name
Case: Philippine First Insurance vs. Hartigan (74SCRA252)
‘Amendment of Corporate Term
Case: Alhambra Cigar vs SEC (24SCRA134)
Board of Directurs/Trustees
Powers of the Board
Classification of Powers
Cases: Ramirez vs. Orientalist (38Phil634)
Barreto vs. La Previsora ((S7Phil649)
Qualifications and Disqualifications
Cases: Lee vs CA. ( 205SCRAS72)