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)