Case 11.

BUGTAG CHEMICAL CORPORATION: Help and the capital contribution of the stockholders were as
follows:
Samuel Bugarin and Antonio Tagorda were class - Amount of Capital Contribution
Name of the Stockholder
mates at the Chemical Engineering Department of De la
Salle University. After passing the board examinations 1.S amuel Bugarin P30,000,000
in 1981, Engineer Bugarin applied for a job in a chemical
2.A ntonio Tagorda 15.000,000
manufacturing company. He first worked as an assis -
tant in the quality control unit. Later, he became chief 3.E dgardo Abuan 3.000,000
of the unit. He handled various jobs in the production 4.J esus Ualat 1,000,000
department. Because of his good performance, he was
5.R osario Mariano 1,000,000
promoted to production manager in 1993.
6.A usberto Taguinod 1.000,000
Engineer Tagorda got a job in 1982 as production
planner of Reliance Chemical Company. In 1990, he was 7.F rancisco Bundoc 1,000,000
assigned as assistant production manager. When the 8.A mparo Paragas 1,000,000
company's marketing manager resigned in 1991, he was
9.A ndres Nicolas 1,000,000
transferred to the marketing department and was named
as the new marketing manager. His main function was Total P54,000,000
to market the company's products consisting of synthetic
resins, aluminum paste, adhesives, plasticizers, calcium The three agreed to produce caustic soda liquid,
sulfate, etc. When he assumed his post as marketing hydrochloric acid, soda ash, sodium sulphate, sodium
manager, the company is already serving a group of loyal tripolyphospate, and sulfuric acid. The construction of the
customers. The increasing requirements of these cus - company's plant has already begun in Dasmarinas, Cavite.
tomers also meant additional orders for the company's The compay has been named the Bugtag Chemical Cor-
products. The company's sales increased even if the poration.
number of its customers did not.
Samuel has already started organizing the product-
In a class reunion held in April 1997, Samuel and ion department by hiring a production planner. Antonio
Antonio met and they conversed for more than three hours. is still considering what steps to take in organizing his
Samuel mentioned that he had started organizing his department. One of his problems is the lack of informa -
own chemical manufacturing firm and he wanted Antonio tion regarding the nature of the market the company must
to join him. Antonio agreed and in a subsequent meet - tap. Also, Antonio is aware of the utmost importance of
ing decided to divide the work between the two of them. providing the production department with a demand fore-
Samuel was to take care of production and Antonio would cast for the company's products.
handle marketing. They decided to invite an experienced
finance officer and a high school classmate, Edgardo
Abuan. He became the company's finance manager.

The company was registered as a stock corporation

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