DLSU-College of Law PETER D.A.

BAROT
2nd Semester 2016 pdbarot@picazolaw.com
LAW 501M : CORPORATION LAW
Tuesdays and Fridays, 1:00 - 3:00 pm
(except as indicated below)
Rooms A904 / A1606

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, duties and functions of the board of directors/trustees and corporate
officers; the powers of corporations; subscriptions, stocks and stockholders; corporate books and records; merger and consolidation; the
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
3. SRC-Implementing Rules and Regulations (2015)
4. Foreign Investments Act (FIA), Republic Act No. xx, as amended
5. 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

DLSU College of Law

2nd Semester 2016
LAW 501M, Section G02: Corporation Law, Barot
 COURSE CALENDAR

Date Topics Reference; Reading Materials Cases

Wk 1: INTRODUCTION Campos, Chapter I Union Glass v SEC (126 SCRA 32)
Jan 12, Tue THE SEC: POWERS AND De Leon [pp 1 - 9] Abejo v dela Cruz (149 SCRA 654)
FUNCTIONS SRC, 4 Magalad v Premiere Financing Corporation (209 SCRA 261)
CIR v Club Filipino, Inc. de Cebu (5 SCRA 321)
Manuel R. Dulay Enterprises v CA (225 SCRA 678)
NDC v Philippine Veterans Bank (192 SCRA 257)
Pioneer Insurance v CA (175 SCRA 668)

Wk 1: THE CORPORATE ENTITY Campos, Chapter III, IV and V McArthur v Times Printing (51 NW 216)
Jan 15, Fri De Leon/Lopez Cagayan Fishing v Sandiko (65 Phil 223)
INCORPORATION AND o 10 - 15; 17 - 22 Builders Duralle v. Dunn (17 SW 2d 715)
Wk 2: REGISTRATION OF Rizal Light v PSC and Morong Electric (25 SCRA 285)
Jan 19, Tue CORPORATIONS Quaker Hill v Parr (364 P 2d 1056)
Old Dominion Copper Mining and Smelting Co. v Bigelow (89
Wk 2: NE 193)
Jan 22, Fri
Philips Export BV v CA (206 SCRA 457)
Wk 3: Lyceum of the Phils. v CA (219 SCRA 610)
Jan 26, Tue P.C. Javier & Sons, Inc. v CA (462 SCRA 36)
Philippine First Insurance Co., Inc. v Hartigan (74 SCRA 252)
Wk 3:
Zuellig Freight v NLRC (701 SCRA 561)
Jan 29, Fri
Malabang v Benito (27 SCRA 533)
Harril v Davis (168 F. 187)
Hall v Piccio (86 Phil 603)
Asia Banking Corp. v Standard Products Co. (46 Phil 145)
Cranson v IBM (200 A 2d 33)
Salvatierra v Garlitos (103 Phil 757)
Chiang Kai Shek School v CA (172 SCRA 389)

DLSU College of Law

2nd Semester 2016
LAW 501M, Section G02: Corporation Law, Barot
 Date Topics Reference; Reading Materials Cases
LBC Express, Inc. v CA (236 SCRA 602)
Lozano v delos Santos (274 SCRA 452)
Lim v Phil. Fishing Gear Industries, Inc. (317 SCRA 728)
Intl Express Travel v CA (343 SCRA 674)
Loyola Grand Villas Homeowners v CA (276 SCRA 681)
Fleischer v Botica Nolasco (47 Phil 583)
Government of the Philippines v El Hogar (50 Phil 399)

Stockholders of F. Guanzon and Sons, Inc. v Register of Deed

(6 SCRA 373)
Caram v CA (151 SCRA 373)
Palay, Inc. v Clave (124 SCRA 638)
JG Summit Holdings, Inc. v CA (450 SCRA 169)
Tramat Mercantile, Inc, v CA (238 SCRA 14)
Marvel Bldg. Corporation v David (94 Phil 376)
Palacio v. Fely Transportation Company (5 SCRA 1011)
NAMARCO v Associated Finance Company (19 SCRA 962)
Tan Boon v Jarencio (163 SCRA 205)
Magsaysay-Labrador v CA (180 SCRA 266)
Indo Phil Textile Mills v Calica (205 SCRA 698)
Jacinto v CA (198 SCRA 211)
Concept Builders, Inc. v NLRC (257 SCRA 149)
Claparols v CIR (65 SCRA 613)
Villa Rey Transit v Ferrer (25 SCRA 845)
Secosa v Heirs of Erwin Suarez Francisco (433 SCRA 273)
Yu v NLRC (245 SCRA 134)
Cease v CA (93 SCRA 483)
Delpher Trades Corporation v CA (157 SCRA 349)
Garnett v Southern Railway Company (173 F. Suppl 915, 1959)
Jardine Davies, Inc. v JRB Realty, Inc. (463 SCRA 555)

DLSU College of Law

2nd Semester 2016
LAW 501M, Section G02: Corporation Law, Barot
 Date Topics Reference; Reading Materials Cases
Koppel (Phil.), Inc. v Yatco (77 Phil 496)
Liddell v CIR (2 SCRA 632)
La Campana Coffee Factory v Kaisahan (93 Phil 160)
WPM International Trading v Labayen (735 SCRA 297)
Tantongco v Kaisahan ng mga Manggagawa (106 Phil 198)
Cruz v Dalisay (152 SCRA 487)
NASECO Guards -PEMA v Natl Service Corp. (629 SCRA 90)
Pacific Reahus Corp. v CA (719 SCRA 665)
Kukan International Corporation v Reyes (631 SCRA 596)
PNB v Hydro Resources Contractors Corp. (693 SCRA 294)
Macasaet v Co, Jr. (697 SCRA 187)
Aboitiz Equity Ventures, Inc. v Chiongbian &729 SCRA 580)
Livesey v Binsumwinger (719 SCRA 433)
Heirs of Fe Tan Uy v Intl Exchange Bank (690 SCRA 519)
Medical Plaza v Cullen (709 SCRA 110)
Gamboa v Teves (652 SCRA 690; 682 SCRA 397)
Narra Nickel Mining v Redmont Conslidated Mines Corp.
(722 SCRA 382

Wk 4: CORPORATE POWERS IN Campos, Chapter VI RP v Acoje Mining (7 SCRA 361)

Feb 2, Tue GENERAL De Leon/Lopez Carlos v Mindoro Sugar (57 Phil 343)
o 36, 45 Republic v El Hogar (50 Phil 399)
National Power Corp. v Vera (170 SCRA 721)
Madrigal & Co. v Zamora (151 SCRA 355)
Pirovano v De la Rama (96 Phil 335)
Harden v Benguet (58 Phil 141)
Stonehill v Diokno (20 SCRA 383)
Bache & Co. (Phil), Inc. v Ruiz, 37 SCRA 823
Mambulao Lumbers v PNB (22 SCRA 359)
ABS-CBN Broadcasting Corp. v CA (301 SCRA 589)

DLSU College of Law

2nd Semester 2016
LAW 501M, Section G02: Corporation Law, Barot
 Date Topics Reference; Reading Materials Cases
Filipinas Broadcasting Network v Ago Medical and Educational
Center (448 SCRA 413)
Wk 4: CORPORATE Campos, Chapter VII (pp 340-412) Ramirez v Orientalist Co. & Fernandez (38 Phil 634)
Feb 5, Fri GOVERNANCE: BOARD De Leon/Lopez Lopez v Ericta (45 SCRA 539)
OF DIRECTORS AND o 23 - 30; 35; 53 - 54 Expert Travel & Tours, Inc. v CA (459 SCRA 147)
COMMITTEES; OFFICERS Citibank NA v Chua (220 SCRA 75)
Prime White Cement v IAC (220 SCRA 103)
Wk 5: Boyer-Roxas v CA (211 SCRA 470)
Feb 9, Tue EPG Construction v CA (210 SCRA 210)
Benguet Electric Cooperative v NLRC (209 SCRA 55)
Wk 5: Woodchild Holdings, Inc. v Roxas Electric and Construction
Feb 12, Fri Company, Inc. (436 SCRA 235)
Yu Chuk v Kong Li Po (46 Phil 608)
Lapulapu Foundation, Inc. v CA (421 SCRA 329)
Board of Liquidators v Heirs of Kalaw (20 SCRA 987)
Advance Papers v Arma Traders Corp. (712 SCRA 313)
Cosare v Broadcom Asia, Inc. (715 SCRA 534)
Grace Christian High School v CA (281 SCRA 133)
Zamboanga Transportation v Bachrach Motor (52 Phil 244)
Board of SME Workers v Tan (105 Phil 426)
Ponce v Encarnacion (94 Phil 81)
Detective & Protective Bureau v Cloribel (26 SCRA 255)
Roxas v dela Rosa (49 Phil 609)
Angeles v Santos (64 Phil 697)
Campbell v Leow, Inc. (134 A. 2d 852)
Dela Rama v Ma-ao Sugar (27 SCRA 247)
Gokongwei v SEC (89 SRA 336)
In Re: Giant Portland Cement (21 A. 2d 697)
State of Washington Rel. Everett Trust v Pacific Waxed Paper
(157 P 2d 707)
DLSU College of Law
2nd Semester 2016
LAW 501M, Section G02: Corporation Law, Barot
 Date Topics Reference; Reading Materials Cases
Alejandrino v de Leon (GR 49043, December 1943)
Everett v Asia Banking Corporation (49 Phil 512)
Mackin v Nicollet Hotel (25 F. 2d 783)
NIDC v Aquino (163 SCRA 153)
Ringling v Ringling Bros. (49 A 2d 603)
E.K. Buck Retail Store v Harket (62 NW 2d 288)
Clark v Dodge (199 NE 641)
Gottschalk v Avalon Realty (23 NW 2d 606)
Sherman & Ellis v Indiana Mutual (41 F. 2d 588)
Benintendi v Kenton Hotel (60 NE 2d 829)
Fua Cun v Summers (44 Phil 705)
Baltazar v Lingayen Gulf (14 SCRA 522)
Nava v Peers Marketing (74 SCRA 65)

Wk 6: CORPORATE Campos, Chapter VIII Otis & Co. v Pennsylvania R. Co. (61 F. Supp. 905)
Feb 16, Tue GOVERNANCE: DUTIES De Leon/Lopez Montelibano v Bacolod-Murcia Milling Co., Inc. (5 SCRA 36)
OF DIRECTORS AND o 31-34 PSE v CA (281 SCRA 232)
CONTROLLING Litwin v Allen (25 N.Y.S. 2d 667)
STOCKHOLDERS Walker v Man (253 NYS 458)
Steinberg v Velasco (52 Phil 953)
Barnes v Andrews (298 F. 614)
Pool v Pool (22 SO 2d 131)
Foster v Bowen (41 NE 2d 181)
Lowell Hoit & Co. v Detig (50 N.E. 2d 602)
Bates v Dresser (251 US 524)
Palting v San Jose Petroleum, Inc. (18 SCRA 924)
Mead v E.C. McCullough (21 Phil 95)
Piccard v Sperry Corporation (48 F. Supp. 465)
Government of the Phil. v El Hogar Filipino (50 Phil 399)
Barretto v La Previsora Filipina (57 Phil 649)

DLSU College of Law

2nd Semester 2016
LAW 501M, Section G02: Corporation Law, Barot
 Date Topics Reference; Reading Materials Cases
Central Cooperative Exchange, Inc. v Tibe (33 SCRA 593)
Fogelson v American Woolen Co. (170 F. 2D 660)
Kerbs v California Eastern Airways (90 A. 2d 652)
Strong v Gutierrez Repide (41 Phil 927)
Taylor v Wright (159 P. 2d 980)
Gokongwei v SEC (89 SCRA 336)
Singer v Carlisle (26 NYS 2d 172)
Irving Trust Co. v Deutsch (73 F 2d 121)
Globe Woolen Co. v Utica Gas & Electric Co. (121 NE 378)
Insuranshares Corporation v Northern Fiscal (35 F. Supp. 22)

Wk 6: CORPORATE Campos, Chapter VII (pp 413-511)

Feb 19, Fri GOVERNANCE: De Leon/Lopez
STOCKHOLDERS o 6
o 49-52; 55-57
CORPORATE o 24, 28, 29, 16, 37-40, 42, 43, 44, 62, 30; 77
GOVERNANCE: WHEN
STOCKHOLDERS' ACTION
NECESSARY

Wk 7: CORPORATE Campos, Chapter VII (pp 513 - 634)

Feb 23, Tue GOVERNANCE: DEVICES De Leon/Lopez
AFFECTING CONTROL o 58-59
o 6, 7

Wk 7: CORPORATE Campos, Chapter IX W.G. Philpotts v Phil Mfg Co. and F.N. Berry (40 Phil 471)
Feb 26, Fri GOVERNANCE; De Leon/Lopez Pardo v Hercules Lumber Co. (47 Phil 965)
INFORMATION RIGHTS o 74-75 Gonzales v PNB (122 SCRA 489)
Veraguth v Isabela Sugar Co. (57 Phil 266)
Gokongwei v SEC (89 SCRA 336)

DLSU College of Law

2nd Semester 2016
LAW 501M, Section G02: Corporation Law, Barot
 Date Topics Reference; Reading Materials Cases
Slay v Polonia Publishing Co. (229 NW 434)
Klein v Scranton Life Ins. Co. (11 A.2d. 770)
Yujuico v Quiambao (724 SCRA 262)

Wk 8:
Mar 1, Tue MID -TERMS
(1:00 - 5:00 pm)
Wk 8: CORPORATE Campos, Chapter X Pascual v Orozco (19 Phil 82)
Mar 4, Fri GOVERNANCE: Evangelista v Santos (86 Phil 837)
DERIVATIVE SUITS Liken v Shaffer (64 F. Supp. 432)
Keenan v Eshleman (2 A.2d 904)
Otis & Co. v Pennsylvania R. Co. (57 F. Supp. 680)
Republic Bank v Cuaderno (19 SCRA 671)
Reyes v Tan (3 SCRA 198)
Chase v CFI-Manila (18 SCRA 602)
Holmes v Camp (180 A.2d 409)
Gamboa v Victoriano (90 SCRA 40)
San Miguel v Kahn (176 SCRA 447)
Villamor, Jr. v Umale (736 SCRA 325)
Ang v Ang (699 SCRA 272)
Cua, Jr. v Tan (607 SCRA 648)

Wk 9: CORPORATE FINANCE: Campos, Chapter XI (pp. 1-117); Chapter XII; Ellingwood v Wolfs Head Oil Refining Co., Inc. (38 A.2d 743)
Mar 8, Tue SHARES OF STOCK Chapter XV Hay v Hay (230 P.2d 791)
De Leon/Lopez Garcia v Lim Chu Sing (59 Phil 562)
Wk 9: CORPORATE FINANCE: o 6-9 Utah Hotel Co. v Madsen (134 Pac 557)
Mar 11, Fri SUBSCRIPTIONS, o 13 Wallace v Eclipse Pocahontas Coal Company (98 SE 293)
TRANSFERS o 39 Bayla v Silang Traffic Co., Inc. (73 Phil 557)
Wk 10: o 60-73 Datu Tagoranao Benito v SEC (123 SCRA 722)
Mar 15, Tue Stokes v Continental Trust Co. (78 NE 1090)

DLSU College of Law

2nd Semester 2016
LAW 501M, Section G02: Corporation Law, Barot
 Date Topics Reference; Reading Materials Cases
Wk 10: Thom v Baltimore Trust Co. (138 A. 234)
Mar 18, Fri Fuller v Krogh (113 NW 2d 25)
Dunlay v Avenue M. Garage & Repair Co., Inc. (170 NE 917)
Wk 11: Ross Transport Inc. v Crothers (45 A. 2d 267)
Mar 22, Tue Meritt-Chapman & Scott Corp. v New York Trust Co. (184 F. 2d
954)
John Kelley Co. v Commissioner of Int. Revenue (362 US 521)
Jordan Co. v Allen, Collector of Internal Revenue (85 F. Sup. 437)
Aladdin Hotel Co. v Bloom (200 F. 2d 627)

Triplex Shoe Co. v Rice & Hutchins, Inc. (152 A. 342)

McCarty v Langdeau (337 SW 2d 407)
Rhode v Dock-hop Co. (194 P. 11)
Bing Crosby Minute Maid Corp. v Eaton, Sr. (46 Cal 2d 484)
Velasco v Poizat (37 Phil. 802)
Lingayen Gulf Electric Power Co., Inc. v Baltazar (93 Phil 404)
Miranda v Tarlac Rice Mill Co., Inc. (G.R., 35961, Decembere 2,
1932)
Da Silva v Aboitiz & Co., Inc. (44 Phil. 755)
National Exchange Co., Inc. v Dexter (51 Phil. 601)
Lumanlan v Cura (59 Phil. 746)
Fua Cun v Summers and China Banking Corporation (44 Phil.
705)
Baltazar v Lingayen Gulf Electric Power Co., Inc. (14 SCRA 522)
Nava v Peers Marketing Corporation (74 SCRA 65)

Uson v Diosomoto (61 Phil 535)

Escano v Filipinas Mining Corporation (74 Phil 711)
Rivera v Florendo (144 SCRA 647)
Nautica Canning Corp. v Yumol (473 SCRA 415)

DLSU College of Law

2nd Semester 2016
LAW 501M, Section G02: Corporation Law, Barot
 Date Topics Reference; Reading Materials Cases
Razon v IAC (207 SCRA 235)
Rural Bank of Salinas v CA (210 SCRA 511)
Santamaria v HSBC (89 Phil 780)
Delos Santos and Astraquillo v Republic (96 Phil 577)
Chua Guan v Samahang Magsasaka, Inc. (62 Phil 472)
Makati Sports Club, Inc. v Cheng (621 SCRA 103)
Bitong v CA (292 SCRA 503)
Torres v CA (278 SCRA 793)
SME Bank, Inc. v De Guzman (707 SCRA 35)

Week 11:
Mar 25 GOOD FRIDAY

Wk 12: CORPORATE FINANCE: Campos, Chapter XIII Nielson & Company, Inc. v Lepanto Consolidated (26 SCRA 540)
Mar 29, Tue DIVIDENDS AND SHARE De Leon/Lopez Berks Broadcasting v Cramer (52 A.2d 571)
BUY-BACK o 41, 43 Lich v United States Rubber Co. (39 F. Supp. 675)
Wk 12: Keough v St. Paul Milk Co. (285 NV 809)
Apr 1, Fri Dodge v Ford Motor Co. (170 NW 668)
Burk v Ottawa Gas & Electric Co. (123 Pac 875)
McLaran v Crescent Planning (93 SW 819)
Turner v Lorenzo Shipping Corporation (636 SCRA 13)

[Wk 13: Apr 5, Tue and Apr 8, Fri] [Out-of-the-country]

Wk 14: CORPORATE FINANCE: Campos, Chapter XVII Reyes v Blouse (91 Phil 305)
Apr 12, Tue MERGER AND De Leon/Lopez Edward J. Nell v Pacific Farms (15 SCRA 415)
CONSOLIDATION o 76-80 Bank of Commerce (721 SCRA 520)
o 40

DLSU College of Law

2nd Semester 2016
LAW 501M, Section G02: Corporation Law, Barot
 Date Topics Reference; Reading Materials Cases
Wk 14: APPRAISAL AND OTHER Campos, Vol 1, pp. 501-506
Apr 15, Fri MINORITY RIGHTS De Leon/Lopez
o 81-86

Wk 15: CORPORATE POWERS: Campos, Chapter XIV Marcus v RH Macy (74 NE 2d 228)
Apr 19, Tue CHARTER AMENDMENTS De Leon/Lopez Philippine Trust Co. v Rivera (44 Phil 469)
o 16, 17
o 11, 37
o 38
o 81

Wk 15: TYPES OF PRIVATE Campos, Chapter II

Apr 22, Fri CORPORATIONS De Leon/Lopez
o 3

Wk 16: NON-STOCK, CLOSE AND Campos, Chapter XIX

Apr 26, Tue SPECIAL CORPORATIONS De Leon/Lopez
o 87-95
Wk 16: o 96-105
Apr 29, Fri o 106-108
o 109-116

Wk 17: FOREIGN CORPORATIONS Campos, Chapter XVIII Marshall-Wells Co. v Elser (46 Phil 71)
May 3, Tue De Leon/Lopez Columbia Pictures v CA (261 SCRA 144)
o 123 - 136 General Garments v Dir. of Patents (41 SCRA 50)
Wk 17: FIA and IRR Le Chemise Lacoste v Fernandez (129 SCRA 373)
May 6, Fri Litton Mills v CA (256 SCRA 696)
Mentholatum v Mangaliman (72 Phil 524)
Agilent Technologies Singapore (Pte) Ltd. v Integrated Silicon
Technology Philippines Corporation (427 SCRA 593)
Merryl Lynch Futures, Inc. v CA (211 SCRA 824)
DLSU College of Law
2nd Semester 2016
LAW 501M, Section G02: Corporation Law, Barot
 Date Topics Reference; Reading Materials Cases
Top Weld Manufacturing, Inc. v ECED (138 SCRA 118)
Antam Consolidated v CA (143 SCRA 288)
Cargill, Inc. v Intra Strata Assurance Corporation (615 SCRA
304)

Wk 18: DISSOLUTION Campos, Chapter XVI Financing Corporation of the Philippines v Teodoro (93 Phil
May 10, Tue De Leon/Lopez 678)
o 117-122 RP v Bisaya Land Transportation Co., Inc. (81 SCRA 9)
Wk 18: o 22 Gonzales v Sugar Regulatory Adm. (174 SCRA 377)
May 13, Fri o 145 Pepsi-Cola Products Philippines, Inc. v CA (443 SCRA 580)
National Abaca & Other Fibers Corporation v Pore (2 SCRA
989)
China Banking Corporation v Michelin & Cie (58 Phil 261)
Republic vs. Marsman Development Company (44 SCRA 418)
Tan Tiong Bio v CIR (4 SCRA 986)
Aguirre II v FQB+7, Inc. (688 SCRA 242)

Wk 19:
May 20, Fri FINALS
(1:00 - 5:00 pm)

DLSU College of Law

2nd Semester 2016
LAW 501M, Section G02: Corporation Law, Barot