BUSINESS ORGANIZATION 2

Course Outline
Business Organiza ons in General
1. Yao Ka Sin Trading Vs. CA, 209 SCRA 763
2. Aurbach vs. Sanitary Wares Manufacturing Corpora on,
180 SCRA 130
3. Mendez vs. People, 726 SCRA 203

Dis nc on Between Partnership and Corpora on

Dis nc on between Joint Account from Partnership

Advantages and Disadvantages of a Corpora on over other business

organiza ons
(Take note of One Person Corpora on, OPC)

II. THE REVISED CORPORATION CODE OF THE PHILIPPINES

A. CORPORATION
1. DEFINITION
2. ATTRIBUTES OF A CORPORATION

B. CLASSES OF CORPORATIONS

1. Feliciano vs. CoA, 419 SCRA 363; January 14, 2003 page 52, book

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 C. NATIONALITY OF CORPORATIONS
page 81, book
i. Narra Nickel Mining and Development Corp. vs.
Redmont Consolidated Mines Corp., 722 SCRA 382
ii. Alilin vs. Petron Corpora on, 725 SCRA 342
iii. S. Davis Winship vs. Philippine Trust Co., 90 Phil. 744
page 80, book
iv. Filipinas Compania de Seguros vs. Christern Huenfeld &
Co., Inc. G.R. No. L-2294; May 25, 1951

2. PLACE OF INCORPORATION TEST

3. CONTROL TEST

4. GRANDFATHER RULE
i. Narra Nickel Mining, et.al., v. Redmont Consolidated
Mines, G.R. No. 195580; 21 April 2014

D. CORPORATE JURIDICAL PERSONALITY

E. DOCTRINE OF PIERCING THE VEIL OF CORPORATE FICTION

1. GROUNDS FOR THE APPLICATION OF THE DOCTRINE
2. TEST IN DETERMINING APPLICABILITY

F. DOCTRINE OF SEPARATE JURIDICAL PERSONALITY

1. LIABILITY FOR TORTS AND CRIMES
2. RECOVERY OF MORAL DAMAGES

CASES:
1. University of Mindanao, Inc. vs. BSP, 778 SCRA 458
2. Nissan Car Lease Philippines, Inc. vs. Lica Management, Inc. 780
SCRA 400
3. Malixi vs. Mexicali Philippines, 792 SCRA 586
4. Ferro Chemicals, Inc. vs. Garcia, 804 SCRA 528
5. De Castro vs. Court of Appeals, 805 SCRA 265, October 5, 2016
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 6. Gulliermo vs. Uson, 785 SCRA 543

7. Republic vs. Mega Paci c eSolu ons, Inc. 794 SCRA 414 page 23, book
8. Leo’s Restaurant and Bar Café vs. Bensing 806 SCRA 596
9. Lee vs. Samahang Manggagawa ng Super Lamina ns (SMSLS-
NAFLU-KNU), 809 SCRA 313
10. Mayor vs. Tiu, 810 SCRA 256
11. Dimson vs. Chua, 811 SCRA 630
12. People’s Security, Inc. vs. Flores, 812 SCRA 260
13. Olongapo City vs. Subic Water and Sewerage Co., Inc. 732 SCRA 132
14. Livesey vs. Binswanger Philippines, Inc., 719 SCRA 433
15. Paci c Rehouse Corpora on vs. Court of Appeals, 719 SCRA 665
16. WPM Interna onal Trading, Inc. vs. Labayen, 735 SCRA 297
17. Mirant (Philippines) Corpora on vs. Caro, 723 SCRA 465
18. Commissioner of Customs vs. Oiling Interna onal Corpora on, 728
SCRA 469
19. Aboi z Equity Ventures, Inc. vs. Chiongbian, 729 SCRA 580
20. Palm Avenue Holding Co., Inc. vs. Sangiganbayan 5th Division, 732
SCRA 156
21. WPM Interna onal Trading, Inc. vs. Labayen, 735 SCRA 297
22. Hermano Oil Manufacturing & Sugar Corpora on vs. Toll
Regulatory Board, 742 SCRA 395
23. Philippine Na onal Bank vs. Hydro Resources Contractors
Corpora on, 693 SCRA 294
24. PNB vs. Hydro Resources Contractors Corpora on, 693 SCRA 294
25. Fortun vs. Quinsayas, 690 SCRA 623
26. Cebu Bionic Supply, Inc. vs. DBP, 635 SCRA 13, 17 November 2010
27. Delima vs. Gois, 554 SCRA 737 (17 June 2008) page 13, book
28. Booc vs. Bantuas, 354 SCRA 279 page 14, book
29. Bau sta vs. Auto Parts Traders, Inc. 561 S 223 page 14, book
30. Boyer-Roxas vs. CA, 211 S 470
31. Saw vs. Ca, 195 S 740
32. Pruden al Bank vs. Alviar, 464 S 353 (July 28, 2005) page 15, book
33. Bank of Commerce v. Marilyn Nite, G.R. No. 211535; July 22, 2015,
763 SCRA 620
34. Lanuza vs. BF Corpora on, 737 S 275 (October 1, 2014) page 16, book
35. Cebu Filveneer Corp. vs. NLRC, 286 SCRA 556
36. Sunio vs. NLRC, 127 SCRA 391 page 17, book
page 17, book
37. Consolidated Bank and Trust Corpora on vs. CA, 356 SCRA 670
page 18, book
38. Secosa vs. Heirs of Erwin Suarez Francisco, 433 SCRA 263, 29 June 2004 page 18, book
39. Powton Conglomerate Inc. vs. Agcolicol, 400 SCRA 523, 3 April 2003 page 18, book
40. Luxuria Homes, Inc. vs. CA, 302 S 315 page 18, book
41. Vicmar Dev. Corp. vs. Elacosa, 777 SCRA 239 (December 9, 2015)
42. De Castro vs. CA, 805 SCRA 265, October 5, 2016
43. Sarona vs. NLRC, et.al., G.R. No. 185280, January 18, 2012
44. PNB vs. Andrada Electric & Engineering Company, 381 SCRA 145
(April 17, 2002)
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 45. Solidbank Corpora on vs Mindanao Ferroalloy Corpora on, 464 S

409 (July 28, 2005)
46. Gala vs. Ellice Agro-Industrial Corpora on, 418 SCRA 431
(December 11, 2003)
47. Luxuria Homes, Inc. vs. CA, 302 S 315
48. Pabalan vs. NLRC, 184 SCRA 495
49. Azcor Mfg. Inc. vs. NLRC, 303 SCRA 26
50. Republic vs. Mega Paci c eSolu ons, Inc.; 27 June 2016, 794 SCRA 414
51. Violago vs. BA Finance Corpora on, 559 SCRA 69 page 24, book
52. Prince Transport, Inc. vs. Garcia, 639 SCRA 312 (Jan. 12, 2011) page 24, book
53. Guillermo v. Uson, G.R. No. 198967; 7 March 2016 page 24, book
54. Eric Godfrey Stanley Livesey vs. Binswanger Philippines, Inc. G.R.
No. 177493, March 19, 2014 page 26, book
55. De Leon vs. NLRC, 358 SCRA 275 page 28, book
56. Rovels Enterprises, Inc. V. Ocampo, 391 SCRA 176; 17 October 2002 page 30, book
page 30, book
57. Reynoso IV v. CA, 22 November 2000; 345 SCRA 335
58. Commissioner of Customs v. Oilink Interna onal Corpora on, 2 page 31, book
July 2014; 728 SCRA 471
59. Lipat vs. Paci c Banking Corpora on, 402 SCRA 339 page 37, book
60. R & E Transport Inc. vs. Latag, 422 SCRA 698 page 46, book
61. Heirs of Ramon Durano, Sr. et.al. versus Uy, et.al, 344 SCRA 238 page 36, book
62. WPM Interna onal Trading, Inc. v. Labayen, 735 SCRA 297; page 32, book
September 17, 2015
63. PNB, et.al. v. Hydro, G.R. No. 167530; 13 March 2013 page 33, book
64. Pamplona Planta on Company, INc. vs. Tinghil, 450 SCRA 421, page 35, book
February 3, 2005
page 37, book
65. Lipat vs. Paci c Banking Corpora on 402 SCRA 339 April 30, 2003
66. De Leon vs. NLRC, 358 SCRA 275 page 28,book
page 30, book
67. Rovels enterprises, Inc. vs. Ocampo, 391 SCRA 176, October 17, 2002
68. Mendoza vs. Banco Real Development Bank, 470 SCRA 86
September 16, 2005
page 30, book
69. Reynoso IV vs. CA, 345 SCRA 335; November 22, 2000
page 34, book
70. Ramoso vs. CA, 374 SCRA 463; December 8, 2000 page 34, book
71. Jardine Davies, Inc. v. JRB Realty Inc. 463 S 555; 15 July 2005
72. Secosa vs. Heirs of Erwin Suarez Francisco, 433 SCRA 273; June 29, 2004
73. Rosales vs. New A.N.J.H. Enterprises, 767 SCRA 149; August 18, 2015 page 39, book
74. Mar nez vs. CA; 438 SCRA 130; September 10, 2004
75. EPG Construc on Co., Inc. vs. CA, 210 SCRA 230 page 43, book
76. Onate vs. LBP, 364 SCRA 375 page 44, book
page 45, book
77. PNB vs. Ritra o Group, Inc. 363 SCRA 216 (July 31, 2001)
78. Marubeni Corpora on vs. Lirag, 363 SCRA 620 page 48, book
page 49, book
79. Borromeo vs. CA, 550 S 269; March 28, 2008
page 41,book
80. Interna onal Academy of Management and Economics v. Li on
and Company, Inc.; G.R. No. 191525; December 13, 2017
81. G. Holdings, Inc. v. NAMAWU 604 SCRA 73; October 16, 2009
82. Francisco v. Mejia, 362 SCRA 738 page 45, book
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 83. R & E Transport, Inc. v. Latag, 402 SCRA 698; 13 February 2004
84. Borromeo v. CA, 28 March 2008; 550 SCRA 269
page 10, book
85. Mambulao Lumber Co. vs. PNB, 22 SCRA 359
86. Ren Transport Corp. vs. NLRC, 794 SCRA 498, 2016
87. Bache & Co., Inc. vs. Ruiz, 37 SCRA 825
88. Bataan Shipyard & Engineering Co., Inc. vs. PCGG, 150 scra 181
89. PNB VS. CA, 83 scra 237
90. Time, Inc. vs. Reyes, 39 SCRA 303

G.INCORPORATION AND ORGANIZATION

page 69, book
i. Samahang Optometrists sa Pilipinas, et.al. vs. Acebedo
Int’l., et.al. 270 SCRA 298

1. NUMBER AND QUALIFICATIONS OF INCORPORATORS

2. CORPORATE NAME; LIMITATIONS ON USE OF CORPORATE
NAME

1. Indian Chamber of Commerce Phils., Inc. vs. Filipino Indian

Chamber of Commerce in the Philippines, Inc., 799 SCRA 278
2. Philips Export B.V. vs. CA, 206 SCRA 457
3. Universal Mills Corpora on vs. Universal Tex le Mills, Inc., 78 SCRA 62
4. Industrial Refractories Corpora on of the Philippines, Inc. vs. CA, page 90, book

390 SCRA 252; October 3, 2002

5. GSIS Family Bank vs. BPI Family Bank, G.R. No. 175278; September 23, 2015
page 90, book
6. Ang Mga Kaanib sa Iglesia ng Dios Kay Kristo Jesus, H.S.K. sa
Bansang Pilipinas, Inc. vs. Iglesia ng Dios kay Kristo Jesus,
Haligi at Suhay ng Katotohanan, Inc.; 372 SCRA 171
page 93, book
7. In the Ma er of Lyceum of the Philippines vs. Lyceum of Aparri,
et.al., SEC Case No. 2611; June 25, 1990
8. Ang Tibay v. Teodoro, 74 Phil. 50
9. De La Salle Montessori Interna onal of Malls Inc. vs. De La Salle page 93, book

Brothers, Inc. G.R. No. 205548; February 7, 2018

2. CORPORATE TERM

3. MINIMUM CAPITAL STOCK AND SUBSCRIPTION

REQUIREMENTS
4. ARTICLES OF INCORPORATION
1. NATURE AND FUNCTION OF ARTICLES
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 2. CONTENTS
3. AMENDMENT
4. NON-AMENDABLE ITEMS
5. REGISTRATION AND ISSUANCE OF CERTIFICATE OF
INCORPORATION
ii. De Facto Corpora on
iii. Corpora on by Estoppel
iv. Corpora on by Prescrip on
1. Pioneer Insurance vs. CA, 175 SCRA 668
2. Chris an Children’s Fund vs. NLRC, 174 SCRA 174 page 102, book

3. Pioneer Insurance & Surety Corpora on vs. CA,

175 SCRA 668

6. NON-USE OF CORPORATE CHARTER

2. ADOPTION OF BY-LAWS
1. PMI Colleges vs. NLRC, 277 SCRA 462
ii. NATURE AND FUNCTIONS OF BY-LAWS
iii. REQUISITES OF VALID BY-LAWS
iv. BINDING EFFECT
v. AMENDMENT OR REVISION

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