TABLE OF CONTENTS PARTI THE CORPORATION CODE [aAPTERT / ‘a DUCTION coos 1 Kinds of business organization 1 Sole proprietorship 1 Partnership 2 Joint venture « 2 Corporation 3 Historical backgroun 3 DEFINITION AND ATTRIBUTES .. 5 ‘Advantages of the corporation form of business 6 Disadvantages ....- 7 Distinctions between corporation and partnership . 7 Government powers in relation to corporations . 9 [CLASSIFICATION OF CORI 10 Stock and non-stock . 10 Collector vs. Club Fil int Corporations created by special laws 2 PNOC-EDC vs. NLRC B Public and private . 4 ‘National Coal vs. CLR 15 Ecclesiastical and lay .... 16 Aggregate, sole, and one person corporations "7 Close and open .... "7 Domestic and foreign 17 Parent/holding, subsidiaries and affiliates 18 Quasi-public . 18 Quasi corporation , 19 “De jure corporation... facto corporati » 19 ntents of the articles of incorporation 22 26 Prefatory paragraph Corporate name .. Red Line Transport vs, Rural Transit Scanned with CamScannerUniversal Mills vs. Universal Textile Mills Lyceum of the Philippines vs. C.A. ‘Amendment or change of corporate'niame Purpose clause z Principal office . Clavecilla Radio Systems vs. Antillon Termof existence Ancorporatots Shares of stock and classification . Purpose of classification ... Common stocks Preferred stocks Par and no-par shares . Voting and non-voting Founder's shares ... Redeemable shares .. Treasury shares Commissioner vs. Manning . Capital requirement ‘A. Based on Industry . B. Based on Foreign Equity . Restrictions and preferences No transfer clause .. Treasurer elect Undertaking to change the name Execution clause ... Acknowledgement Grounds for disapproval {Cortimencement of Corporate exis Cagayan Fishing vs. Sandiko .. Defectively formed corporations De facto corporation .... Municipality of Malabang vs. Benito . Hall vs. Piccio .. » {Corporation by estoppel ~~ “Lozano ¥s. Delos Santos Albert vs. University Publishing . Salvatierra vs. Garlitos Chang Kai Shek vs. C. Asia Banking vs. Standard Products International Express Travel vs. C.A. Georg Grotjahn vs. Insani Organization and commencement of business Corporate organization .... Scanned with CamScanneress transaction -..- ‘Commencement of busin RATE : TER AND. 3 The corporate Cit 94 corporate entity theory The 0g Bayan vs Amen i pon Tp and Paper Mills vs. CA 0 Cruz vs. Dalisay .-+ 98 Palay, Inc. vs. Clave . 99 Soriano ¥5.CAs wr 19 ») > piercing the veil of corporate fiction J Fe te eiynal Academy of Management vs. Litton ia Palacio vs. Fely Transportation Co .. 105 Marvel Bldg. vs. David . 106 ‘Yutivo & Sons vs. C.T.A 108 Commissioner vs, Norton & Harrison il La Campana Coffee vs. Kaisahan ng Manggagawa 13 Emilio Cano vs. CLR. 15 Telephone Engineering vs. WC' 6 Claparols vs. CLLR. ... 118 Nat! Federation of Labor Unions vs. Ople 119 A.C. Ransom vs. C.A. 0 Concept Builders vs. NI 1 Mc Connel vs. C.A. i Tan Boon Bee vs. Jarenci iz _ Cease vs. C.A. is When not justified .. a Remo, Ir. vs. LA.C. ae Del Rosario vs, NLRC Indophil Textile Mills vs. Calica it PNB vs. Ritratto Group 137 Yuvs. NLRC .. 138 ‘Amendment of the corporate 141 Special amendments ....... 144 Provisions subject to amendments 145 See in corporate name oe poo _Phil. First Insuranc A Amendment of corporate sh em 148 Revive tambra Cigar vs, SEC, 150 ‘vival of the corporate term uw BOARD OF DIRECTO! Ce ofthe board 154 ‘ssification of powers 154 imirez vs, Orientalist 154 ‘ 155 Scanned with CamScanner 4158 160 161 Detective & Protective Bureau vs. Cloribel 164 Independent directors 166 Election and voting 167 lon-holding of elections... 170 Validity and binding effect of actions of corporate officers . 171 ‘Yao Ka Sin Trading vs. C.A. 17 Lopez Realty vs. Fontecha .. 175 Pua Casim vs. Newmark .. 177 ‘Yu Chuck vs. Kong Li Po 178 Board of Liquidators vs. Kalaw . 180 Buenaseda vs. Bowen & Co 183 Removal and filling up of vacancies 185 ‘Compensation of directors .... 2189 Central Cooperative Exch. vs. Tibe 191 Wester Inst. of Tech. vs. Salas .. 192 Gov't. vs. El Hogar Filipino 195 Liability of corporate directors or offic 195 Zaragosa vs. Tan & Emperador Distillers 196 ‘Tramat Mercantile vs. C.A. 198 Llamado vs. C.A. 200 Uichico vs. NLRC 201 Three-fold duty of directors . 202 Montelibano vs. Bacolod Murcia Milling 204 Strong vs. Repide 208 Self-dealing directors .. 210 Prime White Cement vs. 212 Mead vs. Mc Cullough 215 Interlocking directors . 217 QF Derivative suit 218 Pascual vs. Orozco .. ~ 4219 Everett vs. Asia Banking Corp. “221 Republic Bank vs. Cuaderno . 224 Western Institute of Tech. vs. Salas . 227 San Miguel Corp. vs. Khan 228 Chase vs. Buencamino 231 Reyes vs. Tan . 233 Gamboa vs. Victoriano . 236 Evangelista vs Santos 238 Executive committee .... CONDE POTS ANDI HON ITY 2 240 RS'AD 242 Power to sue and be sued 244 Delta Motors vs. Mangosing 245 Scanned with CamScanneriI existence «+++ have perpetua’ ron seal by-laws «- . ell stocks or admit members « re/alienate property - . A.D. Santos Power to issu Power to acquit Luneta Motors vs: Director of Lands ¥4 aa mergers oF consolidations. ent and other plans . xr to enter into partnerships, pe to establish pension, retirem Republic vs. Acoje «.+.-+++ Power to exercise such other powers Teresa Electric vs. PSC Napocor vs. Vera .. Power to extend/shorten corporate term Power tolinrease/decrease capital; incur, create bon Philtrust vs.Rivera Madrigal & Co. vs. Zamora Power to deny pre-emptive rights . Benito vs. SEC ... Power to sell/dispose of assets ..... Islamic Directorate of the Phil. vs C.A. Edward Nell & Co. vs. Pacific Farms Power to acquire own shares . Steinberg vs. Velasco . Power to invest funds . Dela Rama vs. Ma-ao Sugar Central . Gokongwei vs. S.E.C , Power to declare dividends . When Scent tights vest eilson & Co. vs, Lepanto Consoli Power to a into management contract nn Consequences . Rama Steamshi Carlos vs. Mindoro Sugar Co. Ee Japanese Wamotes Claimants vs, SEC Crisologo-tose vs. C.A, wy m Fleischer ys, Botica Nolasco Gov't vs, 8 Gokone st Hogar Filipi x okongwei vs, SEC _ Scanned with CamScanner