University of Southern Philippines Foundation

College of Law

Corporation Law
Tue 5:30 – 9:30
Atty. Hazel D. Espina

A. Corporation
1. Definition
2. Attributes of the Corporation

B. Classes of Corporations

C. Nationality of Corporation
1. Place of Incorporation Test
2. Control Test
3. Grandfather Rule
Cases:
 Union Glass vs. SEC, 126 SCRA 32
 Abejo vs. dela Cruz, 149 SCRA 654
 Magalad vs. Premier Financing Corporation, 209 SCRA 261
 CIR. vs. Club Filipino, Inc. de Cebu, 5 SCRA 321
 Manuel R. Dulay Enterprises. vs. CA, 225 SCRA 678
 NDC. V. Philippine Veterans Bank, 192 SCRA 257
 Pioneer Insurance vs. CA, 175 SCRA 668

D. Corporate Juridical Personality

1. Doctrine of Separate Juridical Personality
a. Liability for Torts and Crimes
b. Recovery of Moral Damages
2. Doctrine of Piercing the Corporate Veil
a. Grounds for Application for Doctrine
b. Test in Determining Applicability
Cases:
 J,G. Summit Holdings, Inc. vs. CA, 450 SCRA 169
 Tramat Mercantile, Inc. vs. CA 238 SCRA 14
 Marvel Bldg. Corporation vs. David 94 Phil 376
 NAMARCO vs. Associated Finance Company, 19 SCRA 962
 Indo Phil Textile Mills vs. Calica , 205 SCRA 698
 Concept Builders, Inc. vs. NLRC, 257 SCRA 149
 Villa Rey Transit vs. Ferrer, 25 SCRA 845
 Secosa, et at vs. Heirs of Erwin Suarez Francisco, 433 SCRA 273
 Yu vs. NLRC, 245 SCRA 134
 Delpher Trades Corporation vs. CA, 157 SCRA 349
 Jardine Davies, Inc. vs. JRB Realty Inc, 463 SCRA 555
 Koppel (Phil.) Inc. vs. Yatco, 77 Phil 496
  WPM International Trading vs. Labayen, 735 SCRA 297
 Tantongco vs. Kaisahan ng mga Manggagawa, 106 Phil 198
 Cruz vs. Dalisay, 152 SCRA 487
 NASECO Guards Association-PEMA vs. National Service Corporation,
629 SCRA 90
 Pacific Rehaus Corporation vs. CA, 719 SCRA 665
 Kukan International Corporation vs. Reyes, 631 SCRA 596
 PNB vs. Hydro Resources Contractors Corporation, 693 SCRA 294
 Macasaet vs. Co, Jr., 697 SCRA 187
 Aboitiz Equity Ventures, Inc. vs. Chiongbian , 729 SCRA 519
 Medical Plaza vs. Cullen, 709 SCRA 110
 Gamboa vs. Teves 652 SCRA 690 and 682 SCRA 397
 Narra Nickel Mining et al. vs. Redmont Consolidated Mines
Corporation, 722 SCRA 382
 Narra Nickel Mining et al. vs. Redmont Consolidated Mines
Corporation, GR195580, January 28, 2015

E. Incorporation and Organization

1. Number and Qualifications of Incorporators

2. Corporate Name- Limitations on Use of Corporate Name
3. Corporate Term
4. Minimum Capital Stock and Subscription Requirements
5. Articles of Incorporation
a. Nature and Function of Articles
b. Contents
c. Amendments
d. Non-Amendable items
6. Registration and Issuance of Certificate of Incorporation
7. Adoption of By-Laws
a. Nature and Functions of By-Laws b. Requisites of Valid By-Laws
b. Binding Effects
c. Amendment
Cases:
 Philips Export BV. vs. CA, 206 SCRA 457
 Lyceum of the Phils. vs. CA, 219 SCRA 610
 P.C. Javier & Sons, Inc., et. at.,vs. CA, et. at., 462 SCRA 36
 Philippine first Insurance Company, Inc. vs. Hartigan, et. al., 74 SCRA
252
 Zuellig Freight vs. NLCR 701 SCRA 561
 Malabang vs. Benito, 27 SCRA 533
 Harril vs. Davis, 168 F. 187
 Hall vs. Piccio, 86 Phil 603
 Asia Banking Corporation vs. Standard Products Co., 46 Phil 145
 Cranson vs. International Business Machines Corporation, 200 A. 2d
33
 Salvattiera vs. Garlitos, et al., 103 Phil 757
  Chiang Kai Shek School vs. CA, 172 SCRA 389
 Lozano vs. delos Santos, 274 SCRA 452
 Lim Tong Lim vs. Phil. Fishing Gear Industries, Inc., 317 SCRA 728
 Intl Express Travel v. CA 343 SCRA 674
 Loyola Grand Villas Homeowners vs. CA, 276 SCRA 681
 Fleischer vs. Botica Nolasco, 47 Phil 583
 Government of the Philippines vs. El Hogar, 50 Phil 399
F. Corporate Powers
1. General Powers, Theory of General Capacity
2. Specific Powers, Theory of Specific Capacity
a. Power to Extend or Shorten Corporate Term
b. Power to Increase of Decrease Capital Stock or Incur, Create,
Increase Bonded Indebtedness
c. Power to Deny Pre-Emptive Rights
d. Power to Sell or Dispose of Corporate Assets
e. Power to Acquire Own Shares
f. Power to Invest Corporate Funds in Another Corporation or
Business Policy
g. Power to Declare Dividends
h. Power to Enter Into Management Contract
i. Ultra Vires Acts
i. Applicability of Ultra Vires Doctrine
ii. Consequences of Ultra Vires Acts
3. How Exercised
a. By the Shareholders
b. By the Board of Directors
c. By the Officers
4. Trust Fund Doctrine
Cases:

 RP vs. Acoje Mining, 7 SCRA 361

 Carlos vs. Mindoro Sugar Co, 57 Phil 343
 Republic vs. El Hogar, 50 Phil 399
 Nat’l Power Corp. vs. Vera, 170 SCRA 721
 Madrigal & Co. vs. Zamora, 151 SCRA 355
 Pirovano vs. De la Rama, 96 Phil 335
 Harden vs. Benguet, 58 Phil 141
 Stonehill vs. Diokno, 20 SCRA 383
 Bache & Co (Phils), Inc. vs. Ruiz , 37 SCRA 823
 Mambulao Lumber vs. PNB, 22 SRA 359
 LBC Express, Inc. vs. CA 236 SCRA 602
 ABS-CBN Broadcasting Corp. vs. CA, 301 SCRA 589
 Filipinas Broadcasting Network vs. Ago Medical and Educational
Center, 448 SCRA 413
 Bache & Co (Phils), Inc. vs. Ruiz 37 SCRA 823