Professional Documents
Culture Documents
Montelibano v. Bacolod-Murcia Co., Inc.
Montelibano v. Bacolod-Murcia Co., Inc.
37
http://www.central.com.ph/sfsreader/session/00000165f2119cb80ea353b4003600fb002c009e/t/?o=False 2/9
9/19/2018 SUPREME COURT REPORTS ANNOTATED VOLUME 005
"ACTA NO. 11
SESION DE LA JUNTA DIRECTIVA
AGOSTO 20, 1936
xx xx xx
xx
http://www.central.com.ph/sfsreader/session/00000165f2119cb80ea353b4003600fb002c009e/t/?o=False 3/9
9/19/2018 SUPREME COURT REPORTS ANNOTATED VOLUME 005
39
http://www.central.com.ph/sfsreader/session/00000165f2119cb80ea353b4003600fb002c009e/t/?o=False 4/9
9/19/2018 SUPREME COURT REPORTS ANNOTATED VOLUME 005
40
http://www.central.com.ph/sfsreader/session/00000165f2119cb80ea353b4003600fb002c009e/t/?o=False 5/9
9/19/2018 SUPREME COURT REPORTS ANNOTATED VOLUME 005
"They hold such office charged with the duty to act for the
corporation according to their best judgment, and in so doing they
cannot be controlled in the reasonable exercise and performance
of such duty. Whether the business of a corporation should be
operated at a loss during depression, or close down at a smaller
loss, is a purely business and economic problem to be determined
by the directors of the corporation and not by the court. It is a
well-known rule of law that questions of policy or of management
are left solely to the honest decision of officers and directors of a
corporation, and the court is without authority to substitute its
judgment of the board of directors; the board is the business
manager of the corporation, and so long as it acts in good faith its
orders are not reviewable by the courts." (Fletcher on
Corporations, Vol. 2, p. 390).
43
http://www.central.com.ph/sfsreader/session/00000165f2119cb80ea353b4003600fb002c009e/t/?o=False 7/9
9/19/2018 SUPREME COURT REPORTS ANNOTATED VOLUME 005
2.333% to appellant Gonzaga & Co., for the 1951-1952 crop year;
and to all appellants thereafter—
http://www.central.com.ph/sfsreader/session/00000165f2119cb80ea353b4003600fb002c009e/t/?o=False 8/9
9/19/2018 SUPREME COURT REPORTS ANNOTATED VOLUME 005
______________
http://www.central.com.ph/sfsreader/session/00000165f2119cb80ea353b4003600fb002c009e/t/?o=False 9/9