Philippine Corporation Law (R.A. No. 11232) PDF

CORPORATION LAW (R.A. No. 11232, Revised Corporation Code) ---------------------------------------------------------- A. General Principles a. Nature and Attributes (R.A. No. 11232, Section 2) - Naguiat v. National Labor Relations Commission, G.R. No. 116123, 13 March...

CORPORATION LAW (R.A. No. 11232, Revised Corporation Code) ---------------------------------------------------------- A. General Principles a. Nature and Attributes (R.A. No. 11232, Section 2) - Naguiat v. National Labor Relations Commission, G.R. No. 116123, 13 March 1997 (269 SCRA 564) - Ong v. Court of Appeals, G.R. No. 119858, 29 April 2003, (401 SCRA 648) - Ching v. Secretary of Justice, G. R. No. 164317, 06 February 2006, (481 SCRA 609) -Recovery of Moral Damages -------------------------- - Filipinas Broadcasting Network, Inc., v. Ago Medical and Educational Center, G.R. No. 141994, 17 January 2005, (448 SCRA 413) - Manila Electric Company v. T.E.A.M. Electronics Corporation, - Crystal v. Bank of the Philippine Islands, G.R. No. 172428, 28 November 2008, (572 SCRA 697) b. Nationality of Corporations a. Control Test - Roy III v. Herbosa, G.R. No. 207246, 22 November 2016, (810 - Gamboa v. Teves, G.R. No. 176579, 28 June 2011, (652 SCRA - Heirs of Gamboa v. Teves, G.R. No. 176579, 09 October 2012, (682 SCRA 397) b. Grandfather Rule - Narra Nickel Mining and Development Corporation v. Redmont Consolidated Mines Corporation, G.R. No. 195580, 21 April 2014, (722 SCRA 382) 3. Doctrine of Separate Juridical Personality - Philippine National Bank v. Ritratto Group, Inc., G.R. No. 142616, 31 July 2001, (362 SCRA 216) - Silverio, Jr. v. Filipino Business Consultants, Inc., G.R. No. 143312, 12 August 2005, (466 SCRA 584) - Spouses Nisce v. Equitable PCI Bank, G.R. No. 167434, 19 February 2007 (516 SCRA 231) - Delima v. Gois, G.R. No. 178352, 17 June 2008, (554 SCRA 731) - Philippine National Bank v. Aznar, G.R. No. 171805, 30 May 2011, (649 SCRA 214) - Stronghold Insurance Company, Inc. v. Cuenca, et. al., G.R. No. 173297, 06 March 2013, (692 SCRA 473) - Philippine National Bank (Asset Privatization Trust/Development Bank of the Philippines) v. Hydro Resources Contractors Corporation, G.R. Nos. 167530, 167561, 167603, 13 March 2013 (693 SCRA 294) - EPG Construction Company, Inc. v. Court of Appeals, G.R. No. 103372, 22 June 1992, (210 SCRA 230) - Mactan Rock Industries, Inc. v. Germo, G.R. No. 228799, 10 January 2018, (850 SCRA 532) - Saw v. CA, G.R. No. 90580, 08 April 1991, (195 SCRA 740) - Linden Suites, INC. vs. Meridien Far East Properties, INC. G.R. No. 211969. October 4, 2021 4. Doctrine of Piercing the Corporate Veil - Villa Rey Transit, Inc. v. Ferrer, G.R. No. L-23893, 29 October 1968, (25 SCRA 845) - A.C. Ransom Labor Union-CCLU v. National Labor Relations Commission, G.R. No. L-69494, 29 May 1987, (150 SCRA 498) - Times Transportation Company, Inc. v. Sotelo, G.R. No. 163786, 16 February 2005, (451 SCRA 587) - Kukan International Corporation v. Reyes, G.R. No. 182729, 29 September 2010, (631 SCRA 596) - Gold Line Tours, Inc. v. Heirs of Lacsa, G.R. No. 159108, 18 June 2012, (673 SCRA 399) - Pacific Rehouse Corporation v. Court of Appeals, G.R. Nos. 199687, 201537, 24 March 2014, (719 SCRA 665) - Livesey v. Binswanger Philippines, Inc., G.R. No. 177493, 19 March 2014, (719 SCRA 433) - Lee v. Samahang Manggagawa ng Super Lamination (SMSLS- NAFLU-KMU), G.R. No. 193816, 21 November 2016, (809 SCRA 313) - Mayor v. Tiu, G.R. No. 203770, 23 November 2016, (810 SCRA 256) - Dimson v. Chua, G.R. No. 192318, 05 December 2016, (811 SCRA 630) - ABS CBN Broadcasting Corporation v. Honorato Hilario, G.R. No. 193136, 10 July 2019 (\_ SCRA \_) - Leo R. Rosales, et. al. v. New A.N.J.H. Enterprises & N.H. Oil Mill Corporation, et. al., G.R. No. 203355, 18 August 2015, (767 SCRA 149) - Zambrano v. Philippine Carpet Manufacturing Corporation, G.R. No. 224099, 21 June 2017, (828 SCRA 144) - Maricalum Mining Corporation v. Florentino, G.R. No. 221813, 23 July 2018, (872 SCRA 572) - International Academy of Management and Economics v. Litton and Company Inc., G.R. No. 191525, 13 December 2017, (848 SCRA 437) - Amoroso v Vantage drilling G.R no 238477 August 8 2022 5. Trust Fund Doctrine - Int Ong Yong, v. Tiu, G.R. Nos. 144476, 144629, 08 April 2003, (401 SCRA 1) - Yamamoto v. Nishino Leather Industries, Inc., G.R. No. 150283,16 April 2008, (551 SCRA 447) - Halley v. Printwell, Inc., G.R. No. 157549, 30 May 2011, (649 SCRA 116) - Jennifer M. Enano-Bote, Et. Al. vs. Jose Ch. Alvarez, Centennial Air, Inc. And Subic Bay Metropolitan Authority, G.R. No 223572. November 10, 2020. B. Kinds of Corporation 1. Stock Corporation -- R.A. No. 11232, Section 3 2. Non-Stock Corporations -- R.A. No. 11232, Sections 86-87 - Litonjua, Jr. v. Eternity Corporatio (now Eterton Multi-Resources Corporation), Eteroutremer, S.A., G.R. No. 144805, 08 June 2006, (490 SCRA 204) - Long v. Basa, G.R. Nos. 134963-64, 135152-53 &137135, 27 September 2001, (366 SCRA 113) 3. Close Corporation - R.A. No. 11232, Section 95 - Manuel R. Dulay Enterprises, Inc. v. Court of Appeals, G.R. No. 91889, 27 August 1993, (225 SCRA 678) - San Juan Structural and Steel Fabricators, Inc. v. Court of Appeals, G.R. No. 129459, 29 September 1998, (296 SCRA 631) - Naguiat v. National Labor Relations Commission, G.R. No. 116123, 13 March 1997 (269 SCRA 564) - Bustos v. Millians Shoe, Inc., G.R. No. 185024, 24 April 2017, (824 SCRA 67) 4. Educational Corporations - R.A. No. 11232, Section 105 5. Religious Corporations - R.A. No. 11232, Section 107-08 6. One Person Corporation - R.A. No. 11232, Section 115 C. Incorporation and Organization 1. Number and Qualification of Incorporators - R.A. No. 11232, Section 10 2. Corporate Name -- R.A. No. 11232, Section 14, 17 -- 18 - Republic Planters Bank v. Court of Appeals, G.R. No. 93073, 21 December 1992 (216 SCRA 738) - P.C. Javier & Sons, Inc. v. Court of Appeals, G.R. No. 129552, 29 June 2005, (462 SCRA 36) - Zuellig Freight and Cargo Systems v. National Labor Relations Commission, G.R. No. 157900, 22 July 2013, (701 SCRA 561) - Indian Chamber of Commerce Phils., Inc. v. Filipino Indian Chamber of Commerce in the Philippines, Inc. G.R. No. 184008, 03 August 2016, (799 SCRA 278) De La Salle Montessori International of Malolos, Inc. v. De La Salle Brothers, Inc., G.R. No. 205548, 07 February 2018, (855 SCRA 38) 3. Capitalization - R.A. No. 11232, Section 12 4. Corporate Term - R.A. No. 11232, Section 11 - Philippine National Bank v. Court of First Instance of Rizal, Pasig, G.R. No. 63201, 27 May 1992, (209 SCRA 294) 5. Classification of Shares - R.A. No. 11232, Sections 6-9 - Republic Planters Bank v. Agana, Sr., G.R. No. 51765, 03 March 1997. - Salido, Jr. v. Aramaywan Metals, G.R. No. 233857, March 18, 2021. 6. Articles of Incorporation - R.A. No. 11232, Sections 13-15 - Hyatt Elevators and Escalators Corporation v. Goldstar Elevators, Phils. Inc., G.R. No. 161026, 24 October 2005, (473 SCRA 705) 7. By-Laws - R.A. No. 11232, Sections 45-47 - Grace Christian High School v. Court of Appeals, G.R. No. 108905, 23 October 1997, (281 SCRA 133) - China Banking Corporation v. Court of Appeals, G.R. No. 117604, 26 March 1997, (270 SCRA 503) - PMI Colleges v. National Labor Relations Commission, G.R. No. 121466, 15 August 1997, (277 SCRA 462) 8. Corporate Officers - R.A. No. 11232, Sections 24 9. De Facto Corporation - R.A. No. 11232, Sections 19 - Sawadjaan v. Court of Appeals, G.R. No. 141735, 08 June 2005, (459 SCRA 516) 10. Corporation by Estoppel - R.A. No. 11232, Sections 20 - Pioneer Surety & Insurance Corporation v. Court of Appeal, G.R. No. 84197, 28 July 1989, (175 SCRA 668) - Lim Tong Lim v. Philippine Fishing Gear Industries, Inc., G.R. No. 136448, 03 November 1999, (317 SCRA 728) - People v. Garcia, G.R. No. 117010, 18 April 1997, (271 SCRA 621) - Macasaet v. Co, G.R. No. 156759, 05 June 2013, (697 SCRA 187) - Missionary Sisters of Our Lady of Fatima v. Alzona, G.R. No. 224307, 06 August 2018. D. Directors and Trustees 1. Qualifications and Disqualifications - R.A. No. 11232, Sections 22-26 - Grace Christian High School v. Court of Appeals, G.R. No. 108905, 23 October 1997, (281 SCRA 133) - Lee v. Court of Appeals, G.R. No. 93695, 04 February 1992, (205 2. Elections -R.A. No. 11232, Sections 23 and 25, 91 - Tan v. Sycip, G.R. No. 153468, 17 August 2006, (499 SCRA 216) - PCGG v Eduardo conjuango GR nos. 215527 March 22, 2023 3. Independent Directors -R.A. No. 11323, Section 22 4. Term, Holdover, and Removal -R.A. No. 11232, Section 22 and 27 - Bernas v. Cinco, G.R. Nos. 163356-57, 163368-69, 01 July 2015, (761 SCRA 104) 5. Compensation-RA. No. 11232, Section 29 - Western Institute of Technology, Inc. v. Salas, G.R. No. 113032, 21 August 1997, (278 SCRA 216) 6. Vacancy -R.A. No. 11232, Sections 28 and 25 7. Voting Requirements 8. Duties and Liabilities Total Office Products and Services ( TOPROS ), Inc. v. John Charles Ang, Jr. G.R. Nos. 200070- 7, December 7, 2021 Alicia Fernandez v People of the Philippines, G.R. No. 249606, July 06, 2022 9. Doctrine of Centralized Management 10. Business Judgment Rule - Filipinas Port Services, Inc. v. Go, et al., G.R. No. 161886, 16 March 2007, (518 SCRA 453) - People\'s Aircargo and Warehousing Company v. Court of Appeals, G.R. No. 117847, 7 October 1998, (297 SCRA 170) - Provident International Resources Corporation v. Venus, G.R. No. 167041, 17 June 2008, (554 SCRA 540) - Metroplex Berhard and Paxell Investment LImited v. Sinophil Corporation, et al), G.R. No. 208281, June 28, 2021 11. Doctrine of Apparent Authority 12. Doctrine of Ratification or Estoppel E. Powers of Corporations; Incidental Powers; Ultra Vires Doctrine (R.A. No. 11232, Sections 35-44) 1. General Powers; Theory of General Capacity - National Power Corporation v. Vera, G.R. No. 83558, 27 February 1989, (170 SCRA 721) - Teresa Electric & Power, Co., Inc. v. Public Service Commission, G.R. No. L-21804, 25 September 1967, (21 SCRA 198) - Mid-Pasig Land and Development Corporation v. Tablante, G.R. No. 162924, 04 February 2010, (611 SCRA 528) - Jorgenetics Swine Corporation v. Thick and Thin Agri-Products, G.R. No. 201044, May 05, 2021 2. Specific Powers; Theory of Specific Capacity 3. Power to Extend or Shorten Corporate Term - Philippine National Bank v. Court of First Instance of Rizal, Pasig, G.R. No. 63201, 27 May 1992, (209 SCRA 294) 4. Power to Increase or Decrease Capital Stock or Incur, Create, Increase Bonded Indebtedness - Benito v. Securities and Exchange Commission, G.R. No. L- 56655, 25 July 1983, (123 SCRA 722) 5. Power to Deny Pre-Emptive Rights 6. Power to Sell or Dispose Corporate Assets - Peña v. Court of Appeals, G.R. No. 91478, 07 February 1991, (193 SCRA 717) - Esguerra v. Court of Appeals, G.R. No. 119310, 03 February 1997, (267 SCRA 380) - Islamic Directorate of the Philippines v. Court of Appeals, G.R. No. 117897, 14 May 1997, (272 SCRA 454) - China Banking Corporation v. Dyne-Sem Electronics Corporation, G.R. No. 149237, 11 July 2006, (494 SCRA 493) - Y-I Leisure Philippines, Inc. v. Yu, G.R. No. 207161, 08 September 2015, (770 SCRA 56) 7. Power to Acquire Own Shares - Boman Environmental Development Corporation v. Court of Appeals, G.R. No. 77860, 22 November 1988, (167 SCRA 540) 8. Power to Invest Corporate Funds in Another Corporation or Business - Heirs of Pael v. Court of Appeals, G.R. No. 133547, 10 February 2000, (325 SCRA 341) - Del Rama v. Maao Sugar Central, G.R. No. 17504 & L-17506, 28 February 1969, (27 SCRA 247) 9. Power to Declare Dividends - Madrigal & Company, Inc. v. Zamora, G.R. No. L-48237, 30 June 1987, (151 SCRA 355) 10. Power to Enter into Management Contract (11)Doctrine of Individuality of Subscription 12. Doctrine of Equality of Shares - Commissioner of Internal Revenue v. Court of Appeals, G.R. No. 108576, 20 January 1999, (301 SCRA 152) 13. Ultra Vires Doctrine - Republic v. Acoje Mining Company, Inc., G.R. No. L-18062, 28 February 1963, (7 SCRA 361) - University of Mindanao Inc. v. Bangko Sentral ng Pilipinas, G.R. No. 194964-65, 11 January 2016, (778 SCRA 458) - Development Bank of the Philippines v. Commission on Audit, G.R. No. 210838, 03 July 2018, (870 SCRA 104) - Montelibano v. Bacolod-Murcia Milling Co., Inc., G.R. No. L- 15092, 18 May 1962, (5 SCRA 36) Office of the Ombudsman v. Antonio Z. DE Guzman, G.R. No. 197886, 04 October 2017, (841 SCRA 616) F. Stockholders and Members A. Doctrine of Equality of Shares B. Participation in Management; Voting Requirements 1. Proxy - Government Services Insurance System v. Court of Appeals, G.R. No. 183905, 16 April 2009, (585 SCRA 679) - Securities and Exchange Commission v. Court of Appeals, Omico Corporation, et al., G.R. No. 187702, 22 October 2014, (739 SCRA 99) 2. Voting Trust - Lee v. Court of Appeals, G.R. No. 93695, 04 February 1992, (205 SCRA 752) C. Proprietary Rights a. Right to Dividends-RA. No. 11232, Section 42 - Nielson & Company, Inc., v. Lepanto Consolidated Mining Company, G.R. No. L-21601, 17 December 1966, (18 SCRA - Bitong v. Court of Appeals, G.R. No. 123553, 13 July1998, (292 SCRA 503) - Cojuangco and Prime Holdings, Inc. v. Sandiganbayan, b. Right to Inspection -RA. No. 11232, Sections 73-74 - Gokongwei, Jr. v. Securities & Exchange Commission, G.R. No. L-45911, 11 April 1979, (89 SCRA 336) - Gonzales v. Philippine National Bank, G.R. No. L-33320, 30 May 1983, (122 SCRA 489) - Terelay Investment and Development Corporation v. Yulo, - Yujuico v. Quiambao, G.R. No. 180416, 02 June 2014, (724 - Abra Valley. Grace Borgona Insigne, Et Al. v. Abra Valley Colleges, Inc. and Francis Borgona, G.R. No. 204089, 29 July 2015, (764 scra 64) - Dee Ping Wee v. Lee Hiong Wee, G.R. No. 169345, 25 August 2010, (629 SCRA 145) - Sy Tiong Shiou, et al., v. Sy Chim, et. al., G.R. No. 179438, c. Pre-Emptive Right -R.A. No. 11232, Section 38 - Majority of Stockholders of Ruby Industrial Corporation v. Lim, G.R. No. 165887, 06 June 2011, (650 SCRA 461) d. Appraisal Right -R.A. No. 1123, Sections 80-85 - Turner v. Lorenzo Shipping Corporation, G.R. No. 157479, 24 November 2010, (636 SCRA 13) D. Derivative Suit/Intra-Corporate Suit - Bitong v. Court of Appeals, G.R. No. 123553, 13 July 1998 (292 SCRA 503) - Reyes v. Regional Trial Court of Makati, Br. 142, G.R. No. - Yu v. Yukayguan, G.R. No. 177549, 18 June 2009, (589 - Hi-Yield Realty Incorporated v. Court of Appeals, G.R. No. 168863, 23 June 2009, (590 SCRA 548) - Legaspi Towers 300, Inc. v. Muer, G.R. No. 170783, 18 June 2012, (673 SCRA 453) - Ang v. Spouses Ang, G.R. No. 201675, 19 June 2013, (699 - Ching v. Subic Bay Golf and Country Club Inc., G.R. No. 174353,10 September 2014, (734 SCRA 569) - Villamor Jr. v. Umale, G.R. Nos. 172843, 172881, 24 September 2014, (736 SCRA 325) - Florete Jr. v. Florete Sr., G.R. No. 174909, 20 January 2016, (781 SCRA 255) - Bangko Sentral ng Pilipinas v. Vicente Jose Campa, Jr. et. al., G.R. No. 185979, 16 March 2016, (787 SCRA 476) - Wesleyan University- Philippines v. Maglaya, G.R. No. - AGO Realty & Development Corporation v. Dr. Angelita Go, G. R. No. 210906/G.R. No. 211203, October 16, 2019 - Metropolitan Bank and Trust Company v. Salazar Realty Corporation, G.R. No. 218738, March 9, 2022 E. Delinquency - RA. No. 11232, Sections 67-70 F. Certificate of Stock - RA. No. 11232, Sections 62 and 63 - Tan v. Securities & Exchange Commission, G.R. No. 95696, 03 March 1992, (206 SCRA 740) - David C. Lao v. Dionisio Lao, G.R. No. 170585, October G. Mergers and Consolidations - RA. No. 11232, Sections 75 -- 79 1. Asset only Transfer 2. Business Enterprise Transfer - Associated Bank v. Court of Appeals, G.R. No. 123793, 29 June 1998, (291 SCRA 511) - SME Bank Inc. v. de Guzman (Gaspar), G.R. Nos. 184517, 186641, 08 October 2013, (707 SCRA 35) - Commissioner of Internal Revenue v. Bank of Commerce, G.R. No. 180529, 13 November 2013, (709 SCRA 390) - Bank of Commerce v. Radio Philippines Network Inc., G.R. No. 195615, 21 April 2014, (722 SCRA 520) - Bank of Commerce v. Heirs of Dela Cruz, G.R. No. 211519, 14 August 2017, (837 SCRA 112) - McLeod v. National Labor Relations Commission, G.R. No. 146667, 23 January 2007, (512 SCRA 222) - Babst v. Court of Appeals, G.R. Nos. 99398, 104625, 26 January 2001, (350 SCRA 341) - Omictin v. Court of Appeals, G.R. No. 148004, 22 January 2007, (512 SCRA 70) - Spouses Nisce v. Equitable PCI Bank, G.R. No. 167434, 19 February 2007, (516 SCRA 231) - Bank of the Philippine Islands v. BPI Employees Union-Davao Chapter-Federation of Unions in BPI Unibank, G.R. No. 164301, 19 (11) October 2011, (658 SCRA 828) - Bank of Philippine Islands v. Lee, G.R. No. 190144, 01 August 2012, (678 SCRA 171) - The Philippine Geothermal Inc. Employees Union v. Unocal Philippines, Inc., G.R. No. 190187, 28 September 2016, (804 SCRA 286) - SUMIFRU (Philippines) Corporation v. Baya, G.R. No. 188269, 17 April 2017, (822 SCRA 564) - Spouses Ong v. BPI Family Savings Bank, Inc., G.R. No. 208638, 24 January 2018, (852 SCRA 614) H. Corporate Dissolution and Liquidation - RA. No. 11232, Sections 133-138 1. Modes of Dissolution a. Voluntary Dissolution b. Involuntary Dissolution - Philippine National Bank v. Court of First Instance of Rizal, Pasig, G.R. No. 63201, 27 May 1992, (209 SCRA 2. Methods of Liquidation c. By the Corporation Itself - Yu v. Yukayguan, G.R. No. 177549, 18 June 2009, (589 d. Conveyance to a Trustee Within a Three-Year Period - Gelano v. Court of Appeals, G.R. No. L-39050, 24 February 1981, (103 SCRA 90) - Knecht v. United Cigarette Corporation, G.R. No. 139370, 04 July 2002, (384 SCRA 45) e. By Management Committee or Rehabilitation Receiver - Villamor, Jr. v. Umale, G.R. Nos. 172843, 172881, 24 September 2014, (736 SCRA 325) - Spouses Hiteroza v. Cruzada, G.R. No. 203527, 27 June 2016, (794 SCRA 511) f. Liquidation after Three Years - Clemente v. Court of Appeals, G.R. No. 82407, 27 March 1995, (242 SCRA 717) - Reburiano v. Court of Appeals, G.R. No. 102965, 21 January 1999, (301 SCRA 342) - Paramount Insurance Corporation v. A.C. Ordoñez Corporation, G.R. No. 175109, 06 August 2008, (561 - Vigilla v. Philippine College of Criminology, Inc. G.R. No. 200094, 10 June 2013, (698 SCRA 247) - Alabang Development Corporation v. Alabang Hills Village Association, G.R. No. 187456, 02 June 2014, (724 - Reyes v. Bancom Development Corporation, G.R. No. 190286, 11 January 2018, (850 SCRA 544) I. Foreign Corporations - RA. No. 11232, Sections 140-153 1. Personality to Sue and Be Suability a. Personality to Sue - Top-Weld Manufacturing, Inc. v. ECED, SA., G.R. No. L- 44944, 09 August 1985, (138 SCRA 118) - Merrill Lynch Futures, Inc. v. Court of Appeals, G.R. No. 97816, 24 July 1992, (211 SCRA 824) - MR Holdings, Ltd. v. Bajar, G.R. No. 138104, 11 April 2002, (380 SCRA 617) - Global Business Holdings, Inc., v. Surecomp Software, B.V., G.R. No. 173463, 13 October 2010, (633 SCRA 94) b. Suability of Foreign Corporations c. Instances When Unlicensed Foreign Corporations May be Allowed to Sue (Isolated Transactions) - Philip Morris, Inc. v. CA, G.R. No. 91332, 16 July 1993, - Fredco Manufacturing Corporation v. President and Fellows of Harvard College, G.R. No. 185917, 01 June 2011, (650 SCRA 232) - Llorente v. Star City Pty Limited G.R. Nos. 212050 & 212216, 15 January 2020 - Commissioner of Internal Revenue v. Interpublic Group of Companies, G.R. No. 207039, August 14, 2019 2. Foreign Investments Act (RA. No. 702, As amended by R.A. No. 11647) d. Doing Business in the Philippines - Litton Mills, Inc. v. Court of Appeals, G.R. No. 94980, 15 May 1996, (256 SCRA 696) - Columbia Pictures, Inc. v. Court of Appeals, G.R. No. - Eriks Pte. Ltd. v. Court of Appeals, G.R. No. 118843, 06 February 1997, (267 SCRA 567) - Hutchison Ports Philippines Limited v. Subic Bay Metropolitan Authority, G.R. No. 131367, 31 August 2000, - B. Van Zuiden Bros Ltd. v. GTVL Manufacturing Industries, G.R. No. 147905, 28 May 2007, (523 SCRA 233) - Aboitiz Shipping Corporation v. Insurance Company of North America, G.R. No. 168402, 06 August 2008, (561 - Cargill, Inc. v. Intra Strata Assurance Corporation, G.R. No. 168266,15 March 2010, (615 SCRA 304) - The Home Insurance Company v. Eastern Shipping Lines, - Steelcase, Inc. v. Design International Selections, Inc., - Communication Materials and Design, Inc. v. Court of Appeals, G.R. No. 102223, 22 August 1996, (260 SCRA 673) - Lorenzo Shipping Corp. v. Chubb and Sons, Inc., G.R. No. - Development Bank of the Philippines v Monsanto Company, GR 207153, January 25, 2023 e. Registration Requirement -- Section 5, RA 7042, as amended f. Nationalized Activities and the Negative List - Heirs of Gamboa v. Teves, G.R. No. 176579, 09 October 2012, (682 SCRA 397) II. PARTNERSHIP =========== A. Nature, Definition and Elements of Partnership - 1767, 1774 ----------------------------------------------------------- B. **Creation - 1770, 1771, 1772, 1784, 1815** - Aurelio Litonjua, Jr. v. Edurado Litonjua, Sr., GR Nos. 166299-300, December 13, 2005 - AFISCO Insurance v. CA, GR. No. 112675, January 25, 1999 - Lim Tong Lim v. Philippine Fishing Gear, 317 SCRA 738, 03 November 999 - Philex Mining Corporation v. CIR, 551 SCRA 428, 16 April 2008 - Marjorie Tocao v. CA, 342 SCRA 20, 04 October 2000 - Gregorio Ortega v. CA, 245 SCRA 529, 03 July 1995 - Arbes v. Polistico, GR No. 31057, 07 September 1929 - Eufemia Evangelista v. CIR, GR No. L-9996, 15 October 1957 - Jose Gatchalian v. CIR, 67 Phil 666, 29 April 1939 C. Separate Juridical Personality - 1768, 1775 ------------------------------------------- - Eufemia Evangelista v. CIR, GR No. L-9996, 15 October 1957 - Alfredo Aguila v. CA, 319 SCRA 24, 25 November 1999 - Arsenio Mendiola v. CA, 497 SCRA 346, 31 July 2006 D. Rules to Determine Existence of Partnership/Partnership Distinguished from other Contracts - 1769, 1825, 484 ------------------------------------------------------------------------------------------------------------ a. Co-ownership or co-possession b. Agency c. Labor Union d. Joint Ventures e. Joint Tenancy f. Business Trust g. Conjugal Partnership of Gains h. Corporations i. Voluntary Associations - Aurelio Litonjua, Jr. v. Eduardo Litonjua, 477 SCRA 576, 13 December 2005 - Wolfgang Aurbach v. Sanitary Wares, 180 SCRA 130, 15 December 1989 - Heirs of Tan Eng Kee v. CA, 341 SCRA 740, 03 October 2000 - Mariano Pascual v. CIR, 166 SCRA 560, 18 October 1988 - Jose Obillos, Jr. v. CIR, 139 SCRA 436, 29 October 1985 - Heirs of Jose Lim v. Juliet Villa Lim, GR No. 172690, 3 March 2010 - AFISCO Insurance Corporation v. CA, 302 SCRA 1, 25 January 1999 - Jose Gatchalian et. al. v. CIR, 67 Phil 666, 29 April 1939 - Dr. Carlos L. Sevilla v. CA, 160 SCRA 171, 15 April 1988 - Philex Mining Corporation v. CIR, 551 SCRA 428, 28 August 1998 E. Kinds of Partnerships --------------------- a. Purpose: professional or commercial - 1767 b. Legality of Existence: de facto or de jure - 1772 c. Object: particular or universal - 1776 to 1783 d. Duration: with a fixed term or at will - 1785 e. Liability of the Partners: limited or general - 1776, 1816, 1822-1824, 1843 f. Representation: real or by estoppel - 1825 - CIR v. William J. Suter, 27 SCRA 152, 28 February 1969 - Gregorio F. Ortega, et. al. v. CA, 245 SCRA 529, 3 July 1995 - Paul MacDonald v. The National City Bank of New York, 99 Phil. 156, 21 May 1956 F. Kinds of Partners ----------------- a. Capitalist - 1789, 1790, 1797, 1808 b. Industrial - 1789, 1797 c. Managing - 1792, 1800, 1801, 1802 d. By estoppel - 1825 - Choithram Ramnani v. CA, 196 SCRA 731, 07 May 1991 - Evangelista & Co., et. al. v. Estrella Abad Santos, 51 SCRA 416, 28 June 1973 - George Litton v. Hill & Ceron, et. al., 67 Phil. 509, April 25, 1939 G. Obligations of Partners to the Partnership ------------------------------------------ 1. Obligations of the Partners Among Themselves a. Share in the contributions - 1786 to 1788, 1790, 1791, 1795 b. Proportionately apply all sums collected - 1792 c. Bring to the partnership capital credit received - 1793 d. Pay damages to the partnership - 1794 e. Share in the profits and losses of the partnership - 1797 to 1799 f. Act as agents and managers of the partnership - 1803(1), 1818 g. Render true and full information of all things affecting the partnership - 1806 h. Account to the partnership for any and all benefits - 1807 i. Not to engage in conflict of interest businesses - 1789, 1808 - Mauro Lozana v. Serafin Depakakibo, 107 Phil. 728, 27 April 1960 - Carmen Liwanag v. CA, GR No. 114398, 24 October 1997 - The United States v. Eusebio Clarin, 17 Phil. 84, 17 September 1910 - Isabelo Moran, Jr. v. CA, 133 SCRA 88, 31 October 1984 - Pioneer Insurance & Surety Corporation v. CA, 175 SCRA 668, 28 July 1989 - E. M. Bachrach v. La Protectora, 37 Phil. 441, 21 January 1918 - Pang Lim and Benito Galvez v. Lo Seng, 42 Phil. 283, 21 October 1921 - Antonio Lim Tanhu et. al. v. Hon. Remolete, 66 SCRA 425, 29 August 1975 - R. Y. Hanlon v. John W. Haussermann, GR No. 14617, 18 February 1920 - Evangelista & Co. v. Estrella Abad Santos, 51 SCRA 416, 28 June 1973 - Juan Agustin v. Bartolome Inocencio, 9 Phil. 134, 26 October 1907 - Jose Soncuya v. Carmen de Luna, 67 Phil. 646, 28 April 1939 2. Obligation of the Partnership to the Partners - 1796 - Juan Agustin v. Bartolome Inocencio, *supra* - Pedro Martinez v. Ong Pong Co and Ong Lay, 14 Phil. 726, 10 January 1910 3. Rights of the Partners a. Share in profits and losses of the partnership - 1797 to 1799 b. Enter into a contract of sub-partnership - 1804 c. Have access to, inspect and copy partnership books - 1805 d. Demand a formal account as to partnership affairs - 1809, 1842 e. Property rights - 1810 to 1814 f. Demand for dissolution of the partnership - 1830(2), 1831 - Jose Machuca v. Chuidian, Buenaventura & Co., 2 Phil. 210, 13 May 1903 - Antonio Pardo v. The Hercules Lumber Co., 47 Phil. 964, 01 August 1924 - Dan Fue Leung v. Hon. IAC, 169 SCRA 746, 31 January 1989 - Emilio Emnace v. CA, et. al., 370 SCRA 431, 23 November 2001 - Enrique Clemente v. Dionisio Galvan, 67 Phil. 565, 26 April 1939 4. Obligations of the Partners with Regard to Third Persons a. Agents of the co-partners and the partnership - 1803, 1818, 1821 b. Liable for inclusion of name in the partnership name - 1815 c. Joint liability for partnership obligations - 1816, 1817, 1835 d. Solidary liability for breach of trust and for wrongful acts and omissions - 1822 to 1824 e. Liability arising from and due to partnership by estoppel - 1825 f. Liability of incoming partners for partnership obligations - 1826 g. Preference of partnership creditors in partnership property - 1814, 1827 - Teck Seing & Co. Ltd. v. Pacific Commercial, 45 Phil. 142, 06 September 1923 - La Compania Maritima v. Francisco Munoz, 9 Phil. 326, 12 December 1907 - Island Sales v. United Pioneers General Construction, 65 SCRA 554, 31 July 1975 - Nicolas Co-Pitco v. Pedro Yulo, 8 Phil. 544, 14 September 1907 - Pacific Commercial Company v. Aboitiz & Martinez, 48 Phil. 841, 02 March 1926 - Goquiolay v. SyCip, 105 Phil. 984, 26 July 1960; 9 SCRA 663, 10 Dec. 1963 - Santiago Syjuco, Inc. v. Hon. Jose P. Castro, 175 SCRA 171, 07 July 1989 - Manuel Ormachea Tin-Congco v. Trilliana, 13 Phil. 194, 18 March 1909 - Elmo Muñasque v. CA, 139 SCRA 533, 11 November 1985 - Leoncia Viuda de Chan Diaco v. Jose Peng, 503 Phil. 906, 24 October 1928 H. Dissolution and Winding Up -------------------------- 5. Meaning - 1828, 1829 6. Causes - 1830, 1831 - Without violation of the agreement between the partners - 1830 (1), 1813 - In contravention of the agreement between the partners - 1830 (2) - By operation of law - 1830 (3 to 7) - By decree of court - 1830 (8), 1831, 1814 7. Effects of Dissolution - Continues until winding up of the partnership affairs is completed - 1829 - As to authority of partners to act for the partnership - 1832 to 1834 - Discharge of partner's existing liabilities - 1835, 1837 - Continuing the business of the partnership - 1840-1841 - Right of partner to rescind contract of partnership - 1838 - Liquidation and distribution of assets - 1839 8. Right to Wind-up - 1836 9. Settling of Accounts and Liquidation, Application of Properties and Sharing of Profits and Losses - 1797 to 1799, 1827, 1837, 1839, 1842 - Eufracio Rojas v. Constancio Maglana, 192 SCRA 110, 10 December 1990 - Irma Idos v. CA and People of the Phils., 296 SCRA 194, 25 September 1998 - Gregorio Ortega v. CA, 296 SCRA 529, 03 July 1995 - Domingo Berneaza v. Balbino Dequilla, 43 Phil. 237, 24 March 1922 - Eugenia Lichauco v. Faustino Lichauco, 33 Phil. 350, 31 January 1916 - Testate Estate of Lazaro Mota v. Salvador Serra, 47 Phi. 464, 14 February 1925 - Manuel Singson et. al. v. Isabela Sawmill, 88 SCRA 623, 28 February 1979 - Benjamin Yu v. NLRC, 224 SCRA 75, 30 June 1993 - Laguna Transportation Co. Inc. v. SSS, 107 Phil. 833, 28 April 1960 - Lilibeth Sunga-Chan v. CA, et. al., 555 SCRA 275, 25 June 2008 - Primelink Properties v. Ma. Clarita T. Lazatin-Magat, 493 SCRA 444, 27 June 2006 - Luzviminda J. Villareal v. Donaldo Efren Ramirez, GR No. 144214, 14 July 2003 - Gregorio Magdusa v. Gerundio Albaran, 5 SCRA 511, 30 June 1962 - Cristobal Bonnevie v. Jaime Hernandez, 95 Phil. 175, 31 May 1954 I. Limited Partnership ------------------- 10. Definition and Characteristics - 1843 to 1845, 1848, 1850 & 1857 11. Formation - 1844, 1867 12. Parties a. Limited Partners - 1845 b. General Partners - 1850 13. Certificate of Partnership a. False statement - 1847 b. Amendment and Cancellation - 1849, 1864, 1865 14. Dissolution and Settling of Accounts - 1860, 1863 III. SECURITIES AND REGULATION CODE (R.A. No. 8799) ---------------------------------------------- J. Framework for Regulating of Securities Trading - R.A. No. 8799, Section 8-9 K. Concept of Securities; Howey Test - R.A. No. 8799, Section 3 - Herbosa v. CJH Development Corporation, G.R. No. 210316, 28 November 2016, (810 SCRA 532) - Abacus Securities Corporation v. Ampil, G.R. No. 160016, 27 February 2006, (483 SCRA 315) - Gabionza v. Court of Appeals, G.R. No. 161057, 12 September 2008, (565 SCRA 38) - Power Homes Unlimited Corporation v. Securities & Exchange Commission, G.R. No. 164182, 26 February 2008, (546 SCRA 567) - Timeshare Realty Corporation v. Lao, G.R. No. 158941, 11 February 2008, (544 SCRA 254) - Securities & Exchange Commission v. Prosperity.Com, Inc., G.R. No. 164197, 25 January 2012, (664 SCRA 28) - Securities & Exchange Commission v. Santos, G.R. No. 195542, 19 March 2014, (719 SCRA 514) - Abacus Capital and Investment Corporation v. Tabujara, G.R. No. 197624, 23 July 2018, (872 SCRA 318) - Union Bank of the Philippines v. Securities and Exchange Commission, G.R. No. 138949, 06 June 2001, (358 SCRA 479) - Nestle Philippines, Inc. v. Court of Appeals, G.R. No. 86738, 13 November 1991, (203 SCRA 504) A. Procedure for Registration of Securities B. Prohibitions of Fraud, Manipulation and Insider Trading - Onapal Philippines Commodities, Inc. v. Court of Appeals G.R. No. 90707, 01 February 1993, (218 SCRA 281) 1. Manipulation of Security Prices 2. Short Sales 3. Fraudulent Transaction - Securities & Exchange Commission v. Price Richardson Corporation, 4. Insider Trading - Securities & Exchange Commission v. Interport Resources Corporation, G.R. No. 135808, 06 October 2008, (567 SCRA 354) L. Protection of Investors - Philippine Veterans Bank v. Callangan, G.R. No. 191995, 03 August 2011, (655 SCRA 150) 1. Tender Offer Rule - Cemco Holdings, Inc. v. National Life Insurance Company of the Philippines, Inc., G.R. No. 171815, 07 August 2007, (529 SCRA 355) 2. Rules on Proxy Solicitation - Government Service Insurance System v. Court of Appeals, 3. Disclosure Rule - Securities & Exchange Commission v. Interport Resources Corporation, G.R. No. 135808, 06 October 2008, (567 SCRA 354) M. Civil Liability - Citibank, N.A. v. Tanco-Gabaldon, G.R. No. 198444, 04 September 2013, (705 SCRA 172) - Pua v. Citibank, N.A., G.R. No. 180064, 16 September 2013, (718 Phil - Calleja v. Panday, G.R. No. 168696, 28 February 2006, (483 SCRA 680) - Reyes v. Regional Trial Court of Makati, Br. 142, G.R. No. 165744, 11 August 2008, (561 SCRA 593) - Abad v. Philippine Communications Satellite Corporation, G.R. No. 200620, 18 March 2015, (753 SCRA 544) - Gonzales v. GJH Land Inc., G.R. No. 202664, 20 (10) November 2015, - Dy Teban Trading, Inc. v. Dy, G.R. No. 185647, 26 July 2017, (832 SCRA 533) - Belo Medical Group Inc. v. Santos, G.R. No. 185894, 30 August 2017, (838 SCRA 142) - Cacho v. Balagtas, G.R. No. 202974, 07 February 2018, (855 SCRA 11) - Malcaba v. ProHealth Pharma Philippines, Inc., G.R. No. 209085, 06 June 2018, (864 SCRA 518) - Ellao v. Batangas I Electric Cooperative, Inc., G.R. No. 209166, 09 July 2018, (871 SCRA 227) - Ku v. RCBC Securities, Inc., G.R. No. 219491, 17 October 17 2018 - Tumagan v. Kairuz, G.R. No. 198124, 12 September 2018 - Eizmendi Jr. v. Fernandez, G.R. No. 215280, 05 September 2018 - Barba v. Liceo de Cagayan University, G.R. No. 193857, 28 November 2012, (686 SCRA 648) - Chateau De Baie Condominiom Corporation v. Spouses Moreno, G.R. No. 186271, 23 February 2011, (644 SCRA 288) - Cosare v. Broadcom Asia, G.R. No. 201298, 05 February 2014, (715 - Easycall Communications Phil. V. Edward King, G.R. No. 145901, 15 December 2005 - Eustacio Atwel et al. v. Concepcion Progressive Association, Inc., - Fabia v. Court of Appeals, G.R. No. 132684, 11 September 2002, (363 - Forest Hills Golf and Country Club, Inc. v. Fil-Estate Poperties, Inc., - Gulfo v. Ancheta, G.R. No. 175301, 15 August 2012, (678 SCRA 459) - Go v. Distinction Properties Development and Construction, G.R. No. 194024, 25 April 2012, (671 SCRA 461) - Lisam Enterprises, Inc. v. Banco De oro, G.R. No. 143264, 23 April 2012, (670 SCRA 310) - Baviera v. Standard Chartered Bank, G.R. No. 168380, 08 February 2007, (515 SCRA 170) - Mobilia Products, Inc. v. Umezawa, G.R. No. 149357, 04 March 2005, (452 SCRA 736) - Pablo Roman, Jr. v. Securities and Exchange Commission, G.R. No. 196329, 01 June 2016, (791 SCRA 638) - Philippine Communication Saterlite Corporation and Philcomsat Holdings Corporation v. Sandiganbayan, G.R. No. 203023, 17 June 2015, (759 SCRA 242) - San Jose v. Ozamiz, G.R. No.190590, 12 July 2017, (831 SCRA 51) - Securities and Exchange Commission v. Subic Bay Golf and Country Club, Inc., G.R. No. 179047, 11 March 2015, (752 SCRA 481)