Tayag v. Benguet Consolidated, Inc.

Facts:

Idonah Slade Perkins died in New York City. Then an ancillary administration
proceedings was instituted appointing ancillary administrator Lazaro A. Marquez later on
substituted by Renato D. Tayag. Then CFI ordered domiciliary administrator County
Trust Company of New York to surrender to the ancillary administrator in the Philippines
33,002 shares of stock certificates owned by her in a Philippine corporation, Benguet
Consolidated, Inc., to satisfy the legitimate claims of local creditors. County Trust
Company of New York refused, and petitioned the probate court to order Benguet
Consolidated, Inc. to declare the stocks lost and required it to issue new certificates in
lieu thereof. Benguet Consolidated Inc. opposed the petition of the ancillary
administrator because the said stock certificates are in existence, they are today in the
possession of the domiciliary administrator, the County Trust Company, in New York,
U.S.A. Said petition was granted by the probate court. Appeal was taken by Benguet
Consolidated, Inc. alleging the failure to comply with its by-laws setting forth the
procedure to be followed in case of a lost, stolen or destroyed so it cannot issue new
stock certificates.

Issue:

Whether or not Renato Tayag, as ancillary administrator, or the County Trust Company,
in New York, U.S.A, has a right to the certificates of stock covering the 33,002 shares in
the books of Benguet Consolidated, Inc.

Held:

The ancillary administration is proper, whenever a person dies, leaving in a country

other than that of his last domicile, property to be administered in the nature of assets of
the deceased liable for his individual debts or to be distributed among his heirs.

Probate court has authority to issue the order enforcing the ancillary administrators
right to the stock certificates when the actual situs of the shares of stocks is in the
Philippines. It would follow then that the authority of the probate court to require that
ancillary administrator's right to "the stock certificates covering the 33,002 shares ...
standing in her name in the books of [appellant] Benguet Consolidated, Inc...." be
respected is equally beyond question. For appellant is a Philippine corporation owing
full allegiance and subject to the unrestricted jurisdiction of local courts. Its shares of
stock cannot therefore be considered in any wise as immune from lawful court orders.