RIGHTS OF STOCKHOLDERS DOCTRINE OF INSCRUTABLE FAULT

1. Voting Right  Where fault is established but then it

2. Pre-Emptive Right cannot be determined which of the two
3. Power of Inspection vessels were at fault, both shall be
4. Right to Information deemed to have been at fault.
5. Right to Dividends  If it cannot be determined who is at fault:
6. Appraisal Right both vessels will bear the loss – but the
shipper may go after the owner and
captain if both have been negligent.
GRANDFATHER RULE
 Governs the strict application of the LETTER OF CREDIT
ownership of a corporation namely at least
60% must be owned by natura persons or  An agreement by a bank or other person
corporations who are citizens of the made at the request of a customer that the
Philippines. (Agpalo) issuer will honor drafts or other demands
for payment upon compliance with the
conditions specified in the credit.
COVERED TRANSACTION (definition)  Letters of credit were developed for the
purpose of insuring to a seller payment of
 Cash or monetary instrument - excess of a definite amount upon the presentation of
P500,000.00 (threshold amount) within documents and is thus a commitment by
one banking day (Sec. 3[b]). the issuer that the party in whose favor it
 Precious Metals/Stones – in excess of is issued and who can collect upon it will
P1,000,000 (Sec. 3[a][5] and [6]). have his credit against the applicant of the
 Real Estate – transactions involving letter, duly paid in the amount specified in
P500,000 (Sec. 7[12]) the letter.

SUSPICIOUS TRANSACTION

A transaction with a covered institution,

regardless of the amount involved, where any of
the following circumstances exists:

 No underlying legal or trade obligation,

purpose, or economic justification;
 Client is not properly identified;
 Amount involved not commensurate with
client's business or financial capacity;

TRANSPORTATION

The real and hypothecary nature of maritime law

 The liability of the carrier in connection

with losses related to maritime contracts
is confined to the vessel, which is
hypothecated for such obligations or
which stands as the guaranty for their
settlement. Thus, the liability of the
vessel owner and agent arising from the
operation of such vessel were confined to
the vessel itself, its equipment, freight,
and insurance, if any, which limitation
served to induce capitalists into
effectively wagering their resources
against the consideration of the large
profits attainable in the trade.