ST.

DOMINIC SAVIO COLLEGE OF LAW

COMMERCIAL LAW REVIEW

Professor:

ATTY. REYES

Saturday: 2 PM to 5 PM

COURSE OUTLINE

CORPORATION CODE

I. Brief History of Philippine Corporate Law

- Sociedad anonima, cuentas en participacion, Act No. 1459, BP 68

II. Nature, Attributes and Classifications of Corporations

A. Theories on formation

B. Constitutional provision and civil Code provisions on corporations

C. Franchises of corporations

D. Attributes of corporations (Sec 2.)

E. Advantages and disadvantages of corporate form vis-à-vis other form of

business organizations

F. Entitlement to constitutional guarantees

Case: Stonehill vs. Diokno, 20 SCRA 383

G. Liability of Corporation for Torts

Case: PNB vs. CA, 83 SCRA 237

H. Criminal liability of Corporation

Case: People vs. Tan Boon King, 54 Phil 607

I. Entitlement to moral damages

Case: Mambulao Lumber vs. PNB, 22 SCRA 359

J. Nationality of a Corporation

Case: Register of Deeds of Rizal vs. Ung Sui Si Temple, 97 Phil 58

 K. Classification of Corporation

III. Corporate Juridical Corporation

A. Nature and Consequences of Piercing Doctrine

B. Classification of Piercing Cases: Elements

Case: Concept Builders vs. NLRC, 257 SCRA 149

IV. Corporate Contract Law

A. De Facto Corporation: Requisites

B. Corporation by Estoppel: Requisites

C. Pari De Licto Doctrine

Case: Hall vs. Piccio, 86 Phil 603

V. Articles of Incorporation

A. Ultra Vires Doctrine ( Sec 45)

Case: Montelibano vs. Bacolod-Murcia Milling, 5 SCRA 36

B. Articles of Incorporation (Sec 14); Procedure, Content (Sec 18);

Amendment (Sec 16)

Case: Zuellig Freight and Cargo Systems vs. NLRC, July 22, 2013

C. By-Laws; Amendment ( Sec 48)

Case: Fleishcer vs. Botica Nolasco, 47 Phil 583

VI. Corporate Powers and Authority

A. Express – Secs 2, 36(1) to (10), 37-45

B. Implied – Secs 36 (11), 45

C. Incidental – Secs 2 and 45

VII. Directors, Trustees and Officers

A. Term: Qualifications: Hold-Over Doctrine (Sec 23)

B. Disqualifications (Sec 27)

C. Executive Committee (Sec 35)

D. Election

E. Vacancy

F. Corporate Officers; Qualifications; Quorum

 G. Compensation

H. Meetings: Type; Requirements

I. Duties; Doctrine of Corporate Opportunity

Case: Gokongwei vs. SEC. 97 SCRA 78

J. Removal of Directors and Trustees

VIII. Shares of stock, subscription agreement, stock certificate

A. Subscription; Consideration: Watered Stock ( Secs. 61, 62, 63, 65)

B. Trust Fund Doctrine

C. Payment of Shares (Secs 66 and 67)

D. Delinquency Sale ( Secs. 68, 69, 71, 72)

E. Stock Certificate (Sec 63): Stock and Transfer Book ( Sec 74)

Case: Ponce vs. Alsons Cement. 393 SCRA 602

IX. Rights and Obligations of Stockholders and Members

A. Dividends; Pre- Emptive Right ( Sec 39); Right of First Refusal: Vote,
Proxy (sec 58); Voting Trust Agreement (Sec. 59); Inspection ( Sec 74);
Appraisal Right ( Secs 37, 42, 81)

Case: Puno vs. Puno Enterprises, 599 SCRA 585

B. Meetings ( Secs 50,51,53,54)

Case: Lamuza vs. CA, 454 SCRA 54

C. Derivative Suit; Grounds; Requisites ( Rule 8, Section of the Interim Rules

of Procedure for Intra- Corporate Controversies )

Case: Hi-Yield realty, Inc. vs CA, June 23, 2009

X. Capital Structure

A. Capital vs. Capital Stock

B. Kinds of Stocks

Case: Republic Planters Bank vs. Agana, 269 SCRA 1

XI. Corporate Acquisition: Merger and Consolidation: Nell Doctrine: De Facto

Merger

A. Distinction: requisites; effects (Sec 80)

Case: Mindanao Savings and Loan Association vs. Willikom,

October 10, 2010

XII. Close Corporation: Definition; Restrictions; Liability ( Secs 96, 97, 98, 100)
XIII. Special Corporations: Religious Corporations

Case: Iglesia Filipina Independiente vs. Heirs of Taeza, February 3,

2014

XIV. Dissolution; Methods (Sec 118-120)

Case: Vigilla vs. Phil. College of Criminology, June 10, 2013

XV. Foreign Corporations: Doing Business

Case: Cargill vs. Intra Strata Assurance Corporation, March 15,

2010