CORPORATION LAW

Reading List Part 1

I. REVISED CORPORATION CODE OF THE PHILIPPINES (RA NO. 11232)

1. Definitions and Classifications

a. Corporation defined
i. Corporate Juridical Personality
• Doctrine of Separate Juridical Personality
• Doctrine of Piercing the Corporate Veil

ii. Cases:
• Zambrano vs. Phil Carpet Manufacturing Corp (G.R. No. 224099,
June 21, 2017)
• Heirs of Fe Tan Uy vs. International Exchange Bank (G.R. No.
166282, February 13, 2013)
• Solidbank Corporation vs. Mindanao FerroAlloy Corporation
(G.R. No. 153535, July 28, 2005)
• CIR vs. Norton and Harrison Company (G.R. No. L-17618,
August 31, 1964)
• Martinez vs. CA (G.R. No. 131673, September 10, 2004)
• Francisco Motors Corporation vs. CA (G.R. No. 100812, June 25,
1999)
• Kukan International Corporation vs. Hon. Amor Reyes (G.R. No.
182729, September 29, 2010)

b. Classes of Corporations
c. Nationality of Corporations

i. Cases:
• Narra Nickel Mining and Dev. Corp. vs. Redmont Consolidated
Mines, G.R. No. 195580, 21 April 2014
• Narra Nickel Mining and Dev. Corp. vs. Redmont Consolidated
Mines, G.R. No. 195580, 28 January 2015
• Gamboa vs. Teves, G.R. No. 176579, June 28, 2011
• Gamboa vs. Teves, G.R. No. 176579, October 9, 2012
• Roy vs. Herbosa G.R. No. 207246, November 22, 2016

d. Corporators and Incorporators, Stockholders & Members

e. Classification of Shares

2. Incorporation and Organization of Private Corporations

a. Number and Qualification of Incorporators

b. Contents of Articles of Incorporation
i. Corporate Name
i.) Cases:
• Industrial Retractories Corp of the Phils vs.
Refractories Corp of the Phils. (G.R. No. 122174,
October 3, 2002)
 • Ang Mga Kaanib ng Iglesia vs. Iglesia ng Dios (G.R.
No. 137592, December 12, 2001)

ii. Corporate Term

iii. Authorized Capital Stock and Minimum Subscribed and Paid-Up
Capital

c. Amendment of Articles of Incorporation

i. Case: Zuellig Freight and Cargo Systems vs. NLRC, G.R. No. 157900,
July 22, 2013)

d. Commencement of Corporate Existence

i. Cases:

• Seventh Day Adventist Conference Church of Southern

Philippines, Inc. vs. Northeastern Mindanao Mission of Seventh
Day Adventist, Inc. (GR No. 150416, July 21, 2006)

3. Adoption of By-Laws

a. Requisites:
b. Failure to File:
c. Contents:
d. Binding Effect:
e. Cases:

i. Grace Christian High School vs. CA (G.R. No. 108905, October 23,
1997)
ii. Loyola Grand Villas Homeowners vs. CA, (G.R. No. 117188,
August 7, 1997)
iii. Cebu Mactan Members Inc. vs. Tsukahara (G.R. No. 159624, July
17, 2009)
iv. China Banking Corporation vs. CA (G.R. No. 117604, March 26,
1997)
v. Gokongwei Jr. vs. SEC (G.R. No. L-45911, April 11, 1979)

4. Board of Directors and Trustees/Officers

a. Doctrine of Centralized Management

b. Business Judgment Rule
c. Tenure, Qualifications, and Disqualifications of Directors or Trustees
d. Election
e. Removal
f. Filling of Vacancies
g. Rules on Fiduciaries’ Duties and Liabilities
h. Contracts
i. Self-Dealing Directors
f. Interlocking Directors
j. Meetings
k. Cases:
 i. Ient vs. Prebon (G.R. No. 189158, January 11, 2017)
ii. Valle Verde Country Club vs. Africa (G. R. No. 151969, Sept. 4,
2009)
iii. Filipinas Port Services, Inc. vs. Go G.R. No. 161886, March 16,
2007
iv. Gokongwei Jr. vs. SEC (G.R. No. L-45911, April 11, 1979)
v. Heirs of Fe Tan Uy vs. International Exchange Bank (G.R. No.
166282, February 13, 2013)
vi. Magaling vs. Ong (G.R. No. 173333, August 13, 2008)

5. Stockholders and Members

a. Trust Fund Doctrine – Halley vs. Printwell G.R. No. 157549, May 30,
2011
b. Meeting – Bernas vs. Cinco G.R. No. 163356, July 10, 2015
c. Transfer of Ownership – Teng vs. SEC G.R. No. 184332, February 17,
2016; F&S Velasco vs. Madrid G.R. No. 208844, Nov. 10, 2015
d. Right to Inspect Books and Records – Terelay Investment &
Developmnet Cor vs. Yulo G.R. No. 160924, August 5, 2015; Yujuico vs.
Quiambao (GR No. 180416, June 2, 2014)
e. Voting – Tan vs. Sycip G.R. No. 153468, August 17, 2006

6. Corporate Powers

a. General Powers
b. Specific Powers
c. Ultra Vires Acts

Case:
• Teresa Electric and Power Co., Inc. vs. Public service Commission
and Filipinas Cement Corp. (G.R. No. L-21804, Sept. 25, 1967)
• Majority Stockholders of Ruby Industrial Corporation vs. Miguel
Lim (G.R. no 165887, June 6, 2011)
• Atrium Management Corporation vs. CA (G.R. No. 109491, February
28, 2001)
• Y-I Leisure vs. Yu (G.R. No. 207161, September 8, 2015)
• University of Mindanano, Inc. vs. BSP (G.R. No. 194964-65, January
11, 2016)
• Republic of the Philippines vs. Acoje Mining Company, Inc. (G.R.
No. L-18062, February 28, 1963)