COURSE OUTLINE IN RP Fiscal R.S. Aquino-Tambasacan Reference Maietials: eC 1, Corporation Code cecal i 2. Corporaticn Law Annotaied by Vilanueva and cases cited therein Cutline: cae I Brief history of Phil, corporate ia i ae Seciodad nena, cuentas en participacion, Act No. 1459, BP 68 lk Nature, attributes and classifications of corporations A. Theories on formation B. Constitutional provision and Civil Code provisions on corporations C. Franchises of ccmporations D. Attributes of comorations (Sec. 2) i E, Advantages and disadvantages of corporate form vis-a-vis Olher forms of business organizations — 2010 Bar Fs Entitlement to constitutional quarentees Cases: Stonehill vs. Diokno, 20 SCRA 383 Batoan Shipyard & Eng, vs. PEGG. 150} G. Liebiity ofa corporation for torts: Case: PNB vs. CA, 89 SCRA 237° ‘Criminal liablity of Corporation Case: _ People vs. Tan Boon King, 54 Phil 607 Entitlement to moral damages Cases: =Mambulao Lumber vs, 2 Asset ey Trust a? ‘ate fiction tl Corporate juridical personality: piercing the veil. of CoMmor (Sec. 1 . 2 een | 2012 A. ee and consequences of piercing dectine 2013, ee Jements B. Classification ol piercing cases; element: Cases: ancep! Builders vs. NLRC, 257 sen) ee eee ss Kukan International Core. vs. Reyes, ep ees Cues Asso vs. Naseco. August 25,2010 S Haldings vs, Namawy, 604 SCRA. 73 PEA-PGIWO vs. NLRC. 581 SCRA 598 a Heirs of Uy vs. Intemational Exchange Bonk, February 13, 2013 IV. Corporate contract law A. Be facto corporation: requisites - 2012 Bar B, ‘oiporation by estoppel; requisites C. Par de licto'doctiine Cases: Hail vs. Piccio, 86 Phil 603 Int. Express Travel vs. CA, October 19, 2000 Lozano vs. de los Santas, 274 SCRA 452 Ariicies of Incorperation and by-laws 4. Ulira vires doctrine (Sec, 45): types; basis; business judament rie; docirine of apparent authority Cases: Montelibano vs. Bacolod-Mutcia Milling, 5SCRA 36 Phil. Realty vs. Ley Consi., June 13,2011 Alrium Management vs. CA, 353 SCRA 23. Rural Bank of Milaor vs. Ocferria, 3255CRA 99. Advance Paper Corp. vs. Atma Traders Corp, December }1, 2013 i sehorce Peper CO. ws Aine. tases Com 6. Articles of neapeencateee eee cedure; cenk ee er | ee ee ee ‘Cargo Systems vs. NLRC, & Eos amendment (Sec. 48) ‘ases: — Fleishcer vs. Botica Noldsea, 47 Phil saa. IEMEUIF vs. Lazaro, July 6, 2010 = WL i porate powers and cuthority Expiess [Sees. 2. 34(} ie Ee }40°(10), 37 te 45) See. 38-2012, ae 1998 Bar + 89-2004, 2001. 1999 Sec, 40-2005 Bar aly Vil. Vill. Sec. 4) — 2005, 2002 Bar Sec. 42-2005. 1996 Bar Sec. 43-2012, 2009, 2008 2009, 2005, 2002, 2001, 1990, A Sec.45 ~ 2012, 2009. 2002 dar 1990, 1989 Bar B. Implied (Sec. 34(11), 45} \- Incidental (Secs. 2 and 45) Case; MSCI vs. NWPC, March 7, 1997 Benes Golf and Country Club vs. Vertex Sales, March 2013 Directors, trustees and officers A Tern; qualifications; hold-over doctrine (sec. 221 disqualifications (Sec. 27); executive committse (Sec. 35) Cases: Seferes vs, Comelec, G.R. No. 178478, April 16, 2007 Soulh Cotabato vs. Sto. Tomas, December |5, 2019 Election (Sec. 24); report of resvits (Sec. 26) Vacancy |Sec. 29) - 2012, 1993 Ber 58] - 2012. Corporate officers: qualifications: quorum (Sec. 25} - 2070, 1996 Bar Compensation (Sec. 30) - 199T Bar Meetings: types: requitements (Sec. 53} wo! Duties (Sec. 31, 32 and 34); doctrine of corporate OES when officer personally fable with the corporation = 2 2005, 2001, 2002, 2000, 1998, 1997. 1996, 1995, 1991 Bar Case: Gokengweivs. SEC, 97 SCRA 78 H. Rerrioval ot Grectoss ond trustaes (Sec. 23) - 2001. 1791 Bar ooF Gy Shares of stock, subscription agreement, stock certificate A. Subscription; consideration: watered stock (See. 67, €2, 63, 65); trust fund doctnne - 2009, 2007, 2005 2004, 1996, 1997 Bar Paymerr of shares (Sec. 66 and 67) — 2008, 1997, 1994. 1986 Delinquency sale (Secs, 68, 69, 71, 72} 2008, 1990 Bar Stock cerilicaie (Sec, $3); stoun and transfer back (Sec, #4) - 2013, 2012, 2009 Bar Case: Ponce ys. Alsons Cement, 393 SCRA 602 Fae Rights ard cbligatiors of stackhalders and members — 1996 Bar A. Dividends: pre-empiive right (Sec. 2?) — 2012 Bar; right of first reiusal: vole, proxy (Sec. 58); woling tru: nt (Sec. 2013, 1992 Barri “gee. 7 : (Secs. 37, 42, B1)— 200. Case: | / 5. Meetings: Case: 4) — 2012, . 454 SCRA 54 cer Te as oe ae (Rule 6 Section of the R re tor Intra-Cer i 2018 2012 2009, soba eee ne fa-Comporale Controversies} - Cases: H-Yield Realty, Ine. vs. CA, June 23, 2008xl. xl. Xi. Xill XIV. Yu vs. Yukayguan, June 18, 2009 Filipinas Port Services vs. Go, 518 SCRA 453 Chua vs, CA, 443 SCRA 259 Cua ys. Tan, December 4, 2007 Ang vs. Spouses Ang, June 19, 2013 Capital structure — capital vs. capit yk i Fi | stock; Ki = ae pital stock: kinds af stock - 2073 Case: Republic Planters Bank vs. Agana, 269 SCRA I Corporate acquisition; merger and consolidation A, Distinction; requisites; effects (Sec. 80) - 2072, 1999 Bar Cases: Mindanas Savings and Loan Asso vs- willikom, October 10, 2010 BPI vs. BPI-Employees Union. August 10, 2010 Close corporation; definition: restrictions; liability [Secs- 96, 97, 78. 100) - 1998, 1994 Bar Special corporations; religious corporations — 2012, 2004 Bar Case: Igiesia Fiipina Independiente vs. Heirs of Taeza, February 3, 2014 Dissolution: methods (Secs. 118-120) - 2002 Bar ; liquidation and winding-up - 2012, 2004, 2001, 2000, 1997 Bar Case: Vigila ¥s. Phil. College of Criminology, June 10, 2013 Aguirre Il ys. FQB+7, Inc., January 9, 2013 Foreign corporations; doing business - 2013, 2012, 2002, 1998 Bar Cases: Cargill vs. Intra Strata Assurance Corp., March 15, 2010 Aboiliz Shipping Ys. insurance Co. of North America, August 6, 2008COURSE OUTLINE IN GULATIO Fiscal R.S. ‘Aquino-Tambasacen Reference Materials: ; ‘on the SRC, eg. Decasa, Morales i. Any annotated textbook sec Amended Implementing Rules dated December 30, 2003 2 Outline: A. Historical background of laws on securities B. Puspose Oi lawson securities (Sec. 2) — 1998 Bar Case: > PSE vs. CA. 281 SCRA 232 ¢, Definition ond generat ‘classiication of securities (Sec. 3)- 7988 Bar + Profit participation cerificate — 1990 Bar -y Cerificate of membership — 1989 Bar Case: SEC vs. Santos, March 19, 2014 2 SEC vs, Prosperity.cem, January 25. 2012 ©. eC structure (Secs. ¢.and 6. SRC Rule 3} E SEC powers and jurisdiction (Sec: 5) = Appointment cf rehabilitation receiver — 4 Inspection of books - 1976 Bar i Case: 2 a CA. 281 SCRA 232 (regulatory + Cernco Holdings vs. National 355 (power of SEC to nullify acq Phil. Association of Stock Transfer inc. vs. CA, GR 137821, Ock regulate fees) Pua vs, Citioank, $> Suit against a non-ttockholder not Intra-corporate = 1981 gar + Member vs. corporation considsted intra: corporate ~ 1985 Bar Cotes; > Spaed vs. CA. 425 SCRA 691 (elements for inva- Corporate Controversy) + Vesagas vs. CA. 371 SCRA 408 (members V5, association) + Coxare vs, Broadcom Asi, inc., February 5, 2014 ~ Medical Plaza makati Condominium Corp. ys: Cullen, November 11, 2013 3. Election, appointment, removal of corporate officers Cases: —» Velarde vs. Lopez. 419 SCRA 422 (money claims interlinked with posifion) + Nacpi vs. IBC, 379 SCRA 653 (officer not elected or appointed by the BOD) 4. Suspension of payments [PD 1758 amending PD 902-A) General tule on registration; merii system vs. full disclosure method [Sec. 8, SRC Rule 8.1 and 14.1)-2012 Bar Case: — PSEvs. CA, 281 SCRA 232 Exemp! secutities (Sec. 9, SRC Rule 9.2) — 2009 Bar Case: — Union Bonk vs. SEC, 358 SCRA 479) |exemption registration requirements vis-Gevie” requirements) Exempt lransactions [Sec. 10} Case: + Nestie vs. CA, 203 SCRA 504 (Issuance » capital stock) Commodity futures contract (Sec. 11) Case; .+ Cemco Holdings vs. National Life Insurance, 527 SCRA 355 (direct vs. indirect acquisition) + Cattlemen's Investment Company ys. Fears, 343 F.Supp. 1248 Proxy solicitations (Sec. 20) Intemnal record keeping and accounting controls (Sec. 22) Transections of directors, et.al. (Sec. 23} Menu practices and insider trading Tee Rule 24) Manipulation of security prices (Sec. 24) -» Wash sale = 2001 Bar Manipulative and deceptive devices (Sec: 24.2) Option trading (Sec. 25) pec transactions; insider trading (Sec. 26 and 27) — 2013. 2012, 2004, 1984 Bar Case: + SEC vs, CA, 246 SCRA 736 (fraud vs. negligence) Securities market professionals, broker-director rule (Secs. 53, fo 31) Case: + Nicolas vs. CA, 288 SCRA 307 (répercussion of being: unregistered) Exchanges and other securities trading markets Case: + Lopez, Locsin. Ledesma & Co. vs. CA, 168 SCRA : (exchange rules) 1, Prohibition on use of unregistered exchange, of OTC markels (Sec. 32) i Registration of excnanges [S Broker-deacler segregation rule Power wiih respect to ex Indepenaent directors | ieee responsibilities AQ) Acquisition and 1 oh PEN