DLSU-College of Law PETER D.A.

BAROT
2nd Semester 2017 pdbarot@picazolaw.com
LAW 501M : CORPORATION LAW
Tuesdays and Fridays
Section G01 --- 11:00 am - 01:00 pm
Room 503

Course Description: A study of the law on private corporations, based on the Corporation Code and related laws.

Subjects covered include: the powers and functions of the Securities and Exchange Commission; the types of private corporations; the
incorporation and registration of private corporations; the powers of corporations; the powers, duties and functions of the board of
directors/trustees and corporate officers; subscriptions, stocks and stockholders; corporate books and records; merger and
consolidation; appraisal right; non-stock, close and special corporations; dissolution; securities regulation; and foreign corporations.

Principal Laws 1. Corporation Code of the Philippines, Batas Pambansa Blg. 68

Covered: 2. Securities Regulation Code (SRC), Republic Act No. 8799
a. SRC-Implementing Rules and Regulations (2015)
3. Presidential Decree No. 902-A
4. Foreign Investments Act (FIA), Republic Act No.7042, as amended
a. FIA-Implementing Rules and Regulations

Textbook: CAMPOS, Jose Jr. and CAMPOS, Maria Clara L., THE CORPORATION CODE, Comments, Notes and Selected Cases, Volumes 1 and 2,
1990

Reference Books: 1. DE LEON, Hector S. and DE LEON, Hector Jr. M., THE CORPORATION CODE OF THE PHILIPPINES Annotated, 2013
2. LOPEZ, Rosario N., THE CORPORATION CODE OF THE PHILIPPINES Annotated, Volumes 1 - 3, 1994

Final Grade: Recitation

Mid-Term Examinations
Final Examinations

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 COURSE CALENDAR

Date Topics Reference; Reading Materials Cases

Week 1, INTRODUCTION Campos, Chapter I (1) Union Glass v SEC (126 SCRA 32)
Days 1-2 De Leon [pp 1 - 9] (2) Abejo v dela Cruz (149 SCRA 654)
THE SEC: POWERS SRC, 4 (3) Magalad v Premiere Financing Corporation (209 SCRA 261)
Feb 7 - AND FUNCTIONS (4) SEC v Subic Bay Golf and Country Club, Inc. (752 SCRA 481)
Feb 10 (5) Philippine Communications Satellite Corporation v Sandiganbayan (759 SCRA
242)
(6) Manuel R. Dulay Enterprises v CA (225 SCRA 678)
(7) Pioneer Insurance v CA (175 SCRA 668)
(8) Medical Plaza v Cullen (709 SCRA 110)

Weeks 2-3, TYPES OF PRIVATE Campos, Chapter II (1) Collector of Internal Revenue v Club Filipino (5 SCRA 321)
Days 3-5 CORPORATIONS De Leon/Lopez
o 3, 87, 88, 110 (1) Philips Export BV v CA (206 SCRA 457)
Feb 14 -21 (2) Lyceum of the Phils. v CA (219 SCRA 610)
INCORPORATION AND Campos, Chapter III (3) P.C. Javier & Sons, Inc. v CA (462 SCRA 36)
REGISTRATION OF De Leon/Lopez (4) Philippine First Insurance Co., Inc. v Hartigan (74 SCRA 252)
CORPORATIONS o 10 - 15; 17 - 22 (5) Zuellig Freight v NLRC (701 SCRA 561)
(6) Malabang v Benito (27 SCRA 533)
(7) Hall v Piccio (86 Phil 603)
(8) Asia Banking Corp. v Standard Products Co. (46 Phil 145)
(9) Salvatierra v Garlitos (103 Phil 757)
(10) Chiang Kai Shek School v CA (172 SCRA 389)
(11) Lozano v delos Santos (274 SCRA 452)
(12) Macasaet v Co, Jr. (697 SCRA 187)
(13) Lim v Phil. Fishing Gear Industries, Inc. (317 SCRA 728)
(14) Intl Express Travel v CA (343 SCRA 674)
(15) Loyola Grand Villas Homeowners v CA (276 SCRA 681)
(16) Fleischer v Botica Nolasco (47 Phil 583)
(17) Government of the Philippines v El Hogar Filipino (50 Phil 399)
- 4th, 5th, 6th, 8th causes of action

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 Date Topics Reference; Reading Materials Cases
Weeks 3-4 THE CORPORATE Campos, Chapter IV (1) Stockholders of F. Guanzon and Sons, Inc. v Register of Deed (6 SCRA 373)
Days 6-7 ENTITY; PIERCING THE De Leon/Lopez (2) Caram v CA (151 SCRA 373)
CORPORATE VEIL o 10 - 15; 17 - 22 (3) Palay, Inc. v Clave (124 SCRA 638)
Feb 24-28 (4) Tramat Mercantile, Inc, v CA (238 SCRA 14)
(5) Marvel Bldg. Corporation v David (94 Phil 376)
(6) Palacio v. Fely Transportation Company (5 SCRA 1011)
(7) NAMARCO v Associated Finance Company (19 SCRA 962)
(8) Tan Boon v Jarencio (163 SCRA 205)
(9) Magsaysay-Labrador v CA (180 SCRA 266)
(10) Indo Phil Textile Mills v Calica (205 SCRA 698)
(11) Concept Builders, Inc. v NLRC (257 SCRA 149)
(12) Claparols v CIR (65 SCRA 613)
(13) Villa Rey Transit v Ferrer (25 SCRA 845)
(14) Secosa v Heirs of Erwin Suarez Francisco (433 SCRA 273)
(15) Yu v NLRC (245 SCRA 134)
(16) Cease v CA (93 SCRA 483)
(17) Delpher Trades Corporation v IAC (157 SCRA 349)
(18) Jardine Davies, Inc. v JRB Realty, Inc. (463 SCRA 555)
(19) Koppel (Phil.), Inc. v Yatco (77 Phil 496)
(20) Liddell v CIR (2 SCRA 632)
(21) La Campana Coffee Factory v Kaisahan (93 Phil 160)
(22) WPM International Trading v Labayen (735 SCRA 297)
(23) Guillermo v Uson (GR 198967, March 7, 2016)
(24) Cruz v Dalisay (152 SCRA 487)
(25) NASECO Guards -PEMA v Natl Service Corp. (629 SCRA 90)
(26) Pacific Rehouse Corp. v CA (719 SCRA 665)
(27) Kukan International Corporation v Reyes (631 SCRA 596)
(28) PNB v Hydro Resources Contractors Corp. (693 SCRA 294)
(29) Aboitiz Equity Ventures, Inc. v Chiongbian, (729 SCRA 580)
(30) Livesey v Binswanger (719 SCRA 433)
(31) Heirs of Fe Tan Uy v Intl Exchange Bank (690 SCRA 519)

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 Date Topics Reference; Reading Materials Cases
Weeks 4 PRE-INCORPORATION Campos, Chapter V (1) Cagayan Fishing v Sandiko (65 Phil 223)
Day 8 CONTRACTS (2) Rizal Light v PSC and Morong Electric (25 SCRA 285)

March 3

Weeks 5-6, CORPORATE POWERS Campos, Chapter VI (1) Republic v Acoje Mining (7 SCRA 361)
Days 9-11 IN GENERAL De Leon/Lopez (2) Carlos v Mindoro Sugar (57 Phil 343)
o 36, 45 (3) Government of the Philippines v El Hogar Filipino (50 Phil 399)
March 7 - 14 - 1st, 2nd, 3rd, 7th 9th, 10th, 11th/12th , 13th, 16th, 17th causes of action
(4) National Power Corp. v Vera (170 SCRA 721)
(5) Pirovano v De la Rama (96 Phil 335)
(6) University of Mindanao, Inc. v BSP (GR No 194964-65, January 11, 2016)
(7) Harden v Benguet (58 Phil 141)
(8) Stonehill v Diokno (20 SCRA 383)
(9) Bache & Co. (Phil), Inc. v Ruiz (37 SCRA 823)
(10) Mambulao Lumber v PNB (22 SCRA 359)
(11) LBC Express, Inc. v CA (236 SCRA 602)
(12) ABS-CBN Broadcasting Corp. v CA (301 SCRA 589)
(13) Filipinas Broadcasting Network v Ago Medical and Educational Center (448 SCRA
413)
CORPORATE POWERS: Campos, Chapter XIV
CHARTER De Leon/Lopez (1) Madrigal & Co. v Zamora (151 SCRA 355)
AMENDMENTS o 16, 17
o 11, 37
o 38
o 81

Week 6-7, CORPORATE Campos, Chapter VII (pp 340- (1) Ramirez v Orientalist Co. & Fernandez (38 Phil 634)
Days 12-14 GOVERNANCE: 412) (2) Lopez v Ericta (45 SCRA 539)
BOARD OF DIRECTORS De Leon/Lopez (3) Boyer-Roxas v CA (211 SCRA 470)
March 14 - AND COMMITTEES; o 23 - 30; 35; 53 - 54 (4) Woodchild Holdings, Inc. v Roxas Electric and Construction Company, Inc. (436
March 21 OFFICERS SCRA 235)

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 Date Topics Reference; Reading Materials Cases
(5) Yu Chuk v Kong Li Po (46 Phil 608)
(6) Lapulapu Foundation, Inc. v CA (421 SCRA 329)
(7) Board of Liquidators v Heirs of Kalaw (20 SCRA 987)
(8) Advance Papers v Arma Traders Corp. (712 SCRA 313)
(9) Cosare v Broadcom Asia, Inc. (715 SCRA 534)
(10) Grace Christian High School v CA (281 SCRA 133)
(11) Zamboanga Transportation v Bachrach Motor (52 Phil 244)
(12) Board of SMB Workers v Tan (105 Phil 426)
(13) Ponce v Encarnacion (94 Phil 81)
(14) Detective & Protective Bureau v Cloribel (26 SCRA 255)
(15) Gokongwei v SEC (89 SRA 336)
(16) Roxas v dela Rosa (49 Phil 609)
(17) Angeles v Santos (64 Phil 697)
(18) Alejandrino v de Leon (GR 49043, December 1943)
(19) Torres v CA (278 SCRA 793)

Weeks 7-8, CORPORATE Campos, Chapter VIII (1) Montelibano v Bacolod-Murcia Milling Co., Inc. (5 SCRA 36)
Days 15-16 GOVERNANCE: De Leon/Lopez (2) PSE v CA (281 SCRA 232)
DUTIES OF DIRECTORS o 31-34 (3) Steinberg v Velasco (52 Phil 953)
March 28-31 AND CONTROLLING (4) Palting v San Jose Petroleum, Inc. (18 SCRA 924)
STOCKHOLDERS (5) Mead v E.C. McCullough (21 Phil 95)
(6) Prime White Cement v IAC (220 SCRA 103)
(7) Government of the Phil. v El Hogar Filipino (50 Phil 399)
6th cause of action
(8) Barretto v La Previsora Filipina (57 Phil 649)
(9) Central Cooperative Exchange, Inc. v Tibe (33 SCRA 593)
(10) Strong v Gutierrez Repide (41 Phil 927)
(11) Gokongwei v SEC (89 SCRA 336)
(12) Lanuza v BF Corporation (737 SCRA 275)
(13) Benguet Electric Cooperative v NLRC (209 SCRA 55)

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 Date Topics Reference; Reading Materials Cases

Week of April 03 MID -TERMS

April 04, Tue, 10 am - 2 pm

Week 9, CORPORATE Campos, Chapter VII (pp 413-

Day 17 GOVERNANCE: 511)
STOCKHOLDERS De Leon/Lopez
April 11 o 6
o 49-52; 55-57
o 24, 28, 29, 16, 37-40, 42,
43, 44, 62, 30; 77

April 14 Good Friday

Week 10, CORPORATE Campos, Chapter VII (pp 513 (1) NIDC v Aquino (163 SCRA 153)
Day 18 GOVERNANCE: - 634)
DEVICES AFFECTING De Leon/Lopez
April 18 CONTROL o 58-59
o 6, 7

Week 10, CORPORATE Campos, Chapter IX (1) W.G. Philpotts v Phil Mfg Co. and F.N. Berry (40 Phil 471)
Day 17 GOVERNANCE; De Leon/Lopez (2) Pardo v Hercules Lumber Co. (47 Phil 965)
INFORMATION RIGHTS o 74-75 (3) Gonzales v PNB (122 SCRA 489)
April 21 (4) Veraguth v Isabela Sugar Co. (57 Phil 266)
(5) Gokongwei v SEC (89 SCRA 336)
(6) Yujuico v Quiambao (724 SCRA 262)

Week 10, CORPORATE Campos, Chapter X (1) Pascual v Orozco (19 Phil 82)
Day 18 GOVERNANCE: (2) Evangelista v Santos (86 Phil 837)
DERIVATIVE SUITS (3) Republic Bank v Cuaderno (19 SCRA 671)
April 18 (4) Reyes v Tan (3 SCRA 198)

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 Date Topics Reference; Reading Materials Cases
(5) Chase v CFI-Manila (18 SCRA 602)
(6) Gamboa v Victoriano (90 SCRA 40)
(7) San Miguel v Kahn (176 SCRA 447)
(8) Villamor, Jr. v Umale (736 SCRA 325)
(9) Ang v Ang (699 SCRA 272)
(10) Cua, Jr. v Tan (607 SCRA 648)

Weeks 10- CORPORATE FINANCE: Campos, Chapter XI (pp. 1- (1) Garcia v Lim Chu Sing (59 Phil 562)
12, OVERVIEW 117); Chapter XII; Chapter XV (2) Bayla v Silang Traffic Co., Inc. (73 Phil 557)
Days 19 - 22 De Leon/Lopez (3) Datu Tagoranao Benito v SEC (123 SCRA 722)
o 6-9 [To be supplemented]
April 21 - o 13
May 2 CORPORATE FINANCE: o 39 (1) Velasco v Poizat (37 Phil. 802)
SHARES OF STOCK, o 60-73 (2) Lingayen Gulf Electric Power Co., Inc. v Baltazar (93 Phil 404)
SUBSCRIPTIONS, (3) Miranda v Tarlac Rice Mill Co., Inc. (G.R., 35961, December 2, 1932)
TRANSFERS (4) De Silva v Aboitiz & Co., Inc. (44 Phil. 755)
(5) National Exchange Co., Inc. v Dexter (51 Phil. 601)
(6) Lumanlan v Cura (59 Phil. 746)
(7) Fua Cun v Summers and China Banking Corporation (44 Phil. 705)
(8) Baltazar v Lingayen Gulf Electric Power Co., Inc. (14 SCRA 522)
(9) Nava v Peers Marketing Corporation (74 SCRA 65)

(1) Uson v Diosomoto (61 Phil 535)

(2) Escano v Filipinas Mining Corporation (74 Phil 711)
(3) Rivera v Florendo (144 SCRA 647)
(4) Nautica Canning Corp. v Yumol (473 SCRA 415)
(5) Razon v IAC (207 SCRA 235)
(6) Rural Bank of Salinas v CA (210 SCRA 511)
(7) Santamaria v HSBC (89 Phil 780)
(8) Delos Santos and Astraquillo v Republic (96 Phil 577)
(9) Chua Guan v Samahang Magsasaka, Inc. (62 Phil 472)
(10) Makati Sports Club, Inc. v Cheng (621 SCRA 103)

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 Date Topics Reference; Reading Materials Cases
(11) Bitong v CA (292 SCRA 503)
Week 12, CORPORATE FINANCE: Campos, Chapter XIII (1) Nielson & Company, Inc. v Lepanto Consolidated (26 SCRA 540)
Day 23 DIVIDENDS AND De Leon/Lopez (2) Turner v Lorenzo Shipping Corporation (636 SCRA 13)
SHARE BUY-BACK o 41, 43 [To be supplemented]
May 5

Week 13, CORPORATE FINANCE: Campos, Chapter XVII (1) Reyes v Blouse (91 Phil 305)
Day 24 MERGER AND De Leon/Lopez (2) Edward J. Nell v Pacific Farms (15 SCRA 415)
CONSOLIDATION o 76-80 (3) Bank of Commerce v. RPN (721 SCRA 520)
May 09 o 40 (4) SME Bank, Inc. v De Guzman (707 SCRA 35)

Week 13, APPRAISAL AND Campos, Vol 1, pp. 501-506

Day 25 OTHER MINORITY De Leon/Lopez
RIGHTS o 81-86
May 12

Week 14, NON-STOCK, CLOSE Campos, Chapter XIX

Days 26-27 AND SPECIAL De Leon/Lopez
CORPORATIONS o 87-95
May 16-19 o 96-105
o 106-108
o 109-116

Week 15, DISSOLUTION Campos, Chapter XVI (1) Financing Corporation of the Philippines v Teodoro (93 Phil 678)
Days 28-29 De Leon/Lopez (2) RP v Bisaya Land Transportation Co., Inc. (81 SCRA 9)
o 117-122 (3) Gonzales v Sugar Regulatory Adm. (174 SCRA 377)
May 23 - 26 o 22 (4) Pepsi-Cola Products Philippines, Inc. v CA (443 SCRA 580)
o 145 (5) National Abaca & Other Fibers Corporation v Pore (2 SCRA 989)
(6) China Banking Corporation v Michelin & Cie (58 Phil 261)
(7) Republic vs. Marsman Development Company (44 SCRA 418)
(8) Tan Tiong Bio v CIR (4 SCRA 986)
(9) Aguirre II v FQB+7, Inc. (688 SCRA 242)

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 Date Topics Reference; Reading Materials Cases

FRIA (Financial Rehabiliation

and Insolvency Act, Republic
Act No. 10142)
o 90-93
o 101-136

Week 16, FOREIGN Campos, Chapter XVIII (1) Marshall-Wells Co. v Elser (46 Phil 71)
Day 30 CORPORATIONS De Leon/Lopez (2) General Garments v Dir. of Patents (41 SCRA 50)
o 123 - 136 (3) Le Chemise Lacoste v Fernandez (129 SCRA 373)
May 30 (4) Litton Mills v CA (256 SCRA 696)
(5) Mentholatum v Mangaliman (72 Phil 524)
(6) Agilent Technologies Singapore (Pte) Ltd. v Integrated Silicon Technology
Philippines Corporation (427 SCRA 593)
(7) Merryl Lynch Futures, Inc. v CA (211 SCRA 824)
(8) Top Weld Manufacturing, Inc. v ECED (138 SCRA 118)
(9) Antam Consolidated v CA (143 SCRA 288)
(10) Cargill, Inc. v Intra Strata Assurance Corporation (615 SCRA 304)
(11) Expert Travel & Tours, Inc. v CA (459 SCRA 147)
(12) Citibank NA v Chua (220 SCRA 75)

FIA (Foreign Investments (1) Gamboa v Teves (652 SCRA 690; 682 SCRA 397)
Act, Republic Act No. 7042, (2) Roy v Herbosa, GR No. 207246, 22 Nov. 2016
as amended) (3) Narra Nickel Mining v Redmont Consolidated Mines Corp. (722 SCRA 382, 748
SCRA 455)

Week 16,Day 31
INTEGRATION
June 2

Week of June 05 FINALS

June 06, Tuesday, 10:00 am - 2:00 pm

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