CORPORATION

LAW 2nd Semester, AY 2012-2013 PART I THE CORPORATION CODE I. GENERAL Read: I Campos, Chapters I (sans cases) and II A. Definition (Sec. 2; Articles 44(3), 45, 46, and 1775, Civil Code) q Tayag v. Benguet Consolidated Inc. 26 SCRA 242 (1968) q Monfort Hermanos Agricultural Devt. Corp. v. Monfort III 434 SCRA 27 (2004) q PSE v. Court of Appeals, 281 SCRA 232 (1997) B. Advantages and Disadvantages q Tan Boon Bee & Co. Inc. v. Jarencio, 163 SCRA 205 (1988) C. Distinguished from other entities D. Nature and Attributes q Smith Bell & Co. v. Natividad, 40 Phil. 144 (1920) q Bache & Co v. Ruiz, 37 SCRA 823 (1971) q Stonehill v. Diokno, 20 SCRA 383 (1967) q Bataan Shipyard & Engineering v. PCGG, 150 SCRA 181 (1987) q PNB v. CA, 83 SCRA 237 (1978) q Ching v. Secretary of Justice, 481 SCRA 602 (2006) q Prime White Cement Corp. v. IAC, 220 SCRA 103 (1993) q Filipinas Broadcasting Network v. Ago Medical and Educational Center, 448 SCRA 413 (2005) E. Kinds of Corporations 1. Vis--vis State: Public, quasi-public, private q Boy Scouts of the Philippines v. COA, 651 SCRA 146 (2011) q Marilao Water Consumers Association Inc. v. IAC, G.R. No. 72807, September 9, 1991 q Feliciano v. Commission on Audit, 419 SCRA 363 (2004) q Shipside Inc. v. CA, 352 SCRA 334 (2001) q Camparedondo v. NLRC, 312 SCRA 47 (1999) q Strategic Alliance Devt Corp v. Radstock Securities Ltd., et al, 607 SCRA 413 (2009) q PNOC-Energy Development Corp. v. NLRC, 201 SCRA 487 (1991) 2. As to place of incorporation: (Sec. 123) Domestic, foreign Marie Cecile R. Quintos UP College of Law

3. As to purpose: (Sec. 88, 106-109, 116) municipal, religious, educational, charitable, scientific or vocational, business 4. As to number of members: (Sec. 110, 96) Corporation sole, close, aggregate q Roman Catholic Apostolic Administrator of Davao, Inc. v. LRC, 102 Phil. 596 (1957) See also Republic v. IAC, 168 SCRA 165 (1988) 5. As to existence of shares: Stock (Sec. 3), Non-stock (Sec. 87-88) 6. As to legal status: de jure, de facto (Sec. 20), corporation by estoppel (Sec. 21) Read: I Campos, pp. 86-120 q Sawadjaan v. CA, 459 SCRA 516 (2005) q Intl Express Travel v. CA, 343 SCRA 674 (2000) II. ESTABLISHMENT OF CORPORATIONS Read: I Campos, Chapter III A. REQUIREMENTS FOR INCORPORATION 1. Articles of Incorporation (Sec. 14-15, 97) a. Corporate name (SEC Memo Circ. No. 5, s. 2008; SEC Memo Circ. No. 12, s. 2008) q Lyceum of the Philippines Inc. v. CA, 219 SCRA 610 (1993) q Philips Export B.V. et al v. CA, 206 SCRA 457 (1992) q Phil. First Insurance Co. v. Hartigan, 74 SCRA 252 (1970) b. Purpose (Sec. 14[2], 88) q Ulep v. The Legal Clinic, 223 SCRA 378 (1993) q Alhambra Cigar & Cigarette Mfg v. SEC, 24 SCRA 269 (1968) c. Principal Office (Sec. 14[3]) q Clavecilla Radio Systems v. Antillon, 19 SCRA 379 (1967) q Hyatt Elevators v. Goldstar Elevators, 473 SCRA 705 (2005) d. Corporate term (Sec. 11) e. Incorporators (Sec. 10) f. Capitalization (Sec. 12, 13) i. Concept of Capital/Capital Stock/Share Read: II Campos, pp. 1-6 q NTC v. CA, 311 SCRA 508 (1999) Marie Cecile R. Quintos UP College of Law 2

q Stockholders of F. Guanzon and Sons, Inc. v. Register of Deeds of Manila, 6 SCRA 373 (1962)
ii. Kinds of shares of stock (Sec. 6-9, 41, 57) Read: II Campos, pp. 7-33 q Republic Planters Bank v. Agana, 269 SCRA 1 (1997)

q CIR v. Manning, 66 SCRA 14

q San Miguel Corp. v. Sandiganbayan, 340 SCRA 289 (2000) q Delpher Trades Corp v IAC, 157 SCRA 349 (1988)

iii. Subscription Contract (Sec. 60, 61, 66, 13, 72) Read: II Campos, pp. 33-52 q SEC Opinion dated October 9, 1995 addressed to Atty. A.B.F. Gaviola, Jr. iv. Consideration (Sec. 62, 67, 68) Read: I Campos, Chapter XII 1. Watered Stocks (Sec. 65) 2. Payment (Sec. 13, 67, 68) v. Unpaid subscriptions (Sec. 66-71) Read: II Campos, pp. 186-206 q Apodaca v. NLRC, 172 SCRA 442 (1989) vi. Stock ownership in certain corporations (Sec. 140, Republic Act (R.A.) No. 7042, as amended by R.A. No. 8179, IRR, Executive Order No. 858 (9th Foreign Investment Negative List), Commonwealth Act No. 108) q Gamboa v. Teves, 652 SCRA 690 (2011) G.R. No. 176579, June 28, 2011 q Gamboa v. Teves, G.R. No. 176579, October 9, 2012 with dissenting opinion of J. Abad Read draft SEC Memorandum Circular on Guidelines, Rules and Regulations on Registration, Monitoring, and Investigation of Compliance by Corporations Engaged in Nationalized and Partly Nationalized Activities with Ownership Requirements in the Constitution and/or Existing laws, and Imposing Penalties for Violations Thereof (posted in www.sec.gov.ph ) vii. Close corporations (Sec. 96) viii. No transfer clause (Sec. 15 [Eleventh Article], 97) Read: II Campos, pp. 321-366 q J.G. Summit Holdings Inc. v. CA, 450 SCRA 169 (2005) Marie Cecile R. Quintos UP College of Law 3

 2. By-laws (Sec. 46-47) Read: I Campos, pp. 121-136 q SMC v. Mandaue Packing Products Plants Union-FFW, 467 SCRA 107 (2005) q Grace Christian High School v. CA, 281 SCRA 133 (1997) q China Banking Corp v. CA, 270 SCRA 503 (1997) B. GROUNDS FOR REJECTION (Sec. 17) C. COMMENCEMENT OF CORPORATE EXISTENCE (Sec. 19, 22) q Cagayan Fishing Devt Co. v. Sandiko, 65 Phil 233 (1937) D. PRE-INCORPORATION TRANSACTIONS Read: I Campos, Chapter V E. REGULATION OF PRIVATE CORPORATIONS BY THE SEC 1. Powers and Functions (Sec. 5.1, SRC) 2. Jurisdiction (Sec. 5.2, SRC vis--vis Sec. 5 of P.D. 902-A) q GSIS v. CA, 585 SCRA 679 (2009) q Provident International Resources Corp. v. Venus, 554 SCRA 540 (2008) q Consuelo Metal Corporation v. Planters Development Bank, 555 SCRA 465 (2008) q Baviera v. Paglinawan, 515 SCRA 170 (2007) Read Sec. 5, Republic Act No. 10149 (2010) (see http://www.gcggov.com/ ) III. TRUST FUND DOCTRINE See Art. 2238, Civil Code q NTC v. CA, 311 SCRA 508 (1999) q Donnina Halley v. Printwell, Inc., 649 SCRA 116 (2011) q Ong Yong v. Tiu, 401 SCRA 1 (2003) IV. THE CORPORATION AS AN ENTITY Read: I Campos, Chapter IV A. In General: Separate Juridical Personality q Land Bank of the Philippines v. CA, 364 SCRA 375 (2001) q Good Earth Emporium v. CA, 194 SCRA 544 (1991) q DBP v. NLRC, 186 SCRA 841 (1990) q Traders Royal Bank v. CA, 177 SCRA 789 (1989) q EPG Construction v. CA, 210 SCRA 230 (1992) B. Exception: Doctrine of Piercing the Veil of Corporate Fiction

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1. General Principles q Suldao v. Cimech System Construction, Inc., 506 SCRA 256 (2006) q Concept Builders Inc. v. NLRC, 257 SCRA 149 (1996) 2. Elements; Basis for applying doctrine q PNB v. Andrada Electric & Engineering Co., 381 SCRA 244 (2002) 3. When applicable Fraud q First Philippine International Bank v. Court of Appeals, 252 SCRA 259 (1996) q Shoemart v. NLRC, 225 SCRA 311 (1993) q Marvel Building Corp v. David, 94 Phil 376 (1954) Alter-ego; instrumentality rule q Lipat v. Pacific Banking Corp., 402 SCRA 339 (2003) q La Campana Coffee Factory v. Kaisahan ng Manggagawa 93 Phil 160 (1953) q NAFLU v. Ople, 143 SCRA 125 (1986) Parent-subsidiary q Reynoso IV v. Court of Appeals 345 SCRA 335 (2000) q General Credit Corp. v. Alsons Dev. and Investment Corp., 513 SCRA 225 (2007) 4. When not applicable Francisco Motors Corp. v Court of Appeals, 309 SCRA 72 (1999) Traders Royal Bank v. CA, 269 SCRA 15 (1997) Indophil Textile Mill Workers Union-PTGWO v. Calica, 205 SCRA 697 (1992) Umali v. CA, 189 SCRA 529 (1990) Del Rosario v. NLRC, 187 SCRA 777 (1990) Yu v. NLRC, 245 SCRA 134 (1995) Boyer-Roxas v. Court of Appeals, 211 SCRA 470 (1992) Nisce v. Equitable PCI Bank, Inc., 516 SCRA 231 (2007) Marubeni Corporation v. Lirag, 362 SCRA 620 (2001) V. POWERS OF CORPORATIONS Read: I Campos, Chapter VI A. GENERAL (Sec. 36) B. SPECIFIC q q q q q q q q q 1. Amend the articles of incorporation and by-laws (Sec. 16, 48) Read: II Campos, Chapter XIV Extend/shorten corporate term (Sec. 37, 81[1]) Increase/decrease authorized capital stock (Sec. 38) 2. Incur, create or increase bonded indebtedness (Sec. 38) Marie Cecile R. Quintos UP College of Law 5

3. 4.

5.

6.

7.

8.

Deny pre-emptive right (Sec. 39) Sell or dispose of assets (Sec. 40; see also Act No. 3952 [Bulk Sales Law]) Read: II Campos, pp. 462-481 q Caltex (Phils.) Inc. v. PNOC Shipping and Transport Corp. 498 SCRA 400 (2006) Investment of corporate funds (Sec. 42) q De la Rama v. Ma-ao Sugar Central Co., 27 SCRA 247 (1969) Declare dividends (Sec. 43) Read: II Campos, Chapter XIII q Nielson & Co. v. Lepanto Consolidated Mining Co., 26 SCRA 540 (1968) Acquire its own shares (Sec. 41) Read: II Campos, Chapter XIII Enter into management contracts (Sec. 44) q Nielson & Co. v. Lepanto Consolidated Mining Co., supra

C. IMPLIED AND INCIDENTAL (Par. 11, Sec. 36) q Luneta Motor Co. v. A.D. Santos Inc., 5 SCRA 809 (1962) q Teresa Electric Power Co. Inc. v. PSC, 21 SCRA 198 (1967) 1. Act as guarantor/surety of another corporation q SEC OGC Opinion 08-2011 dated April 16, 2008 q SEC Opinions 24 March 1982, 30 July 1987, 16 December 1991 2. Enter into a partnership or joint venture q Tuason & Co. v. Bolaos, 95 Phil. 106 (1954) q SEC Opinion dated 29 February 1980 D. ULTRA VIRES DOCTRINE (Sec. 45) Read: I Campos, pp. 287-339 q Govt. of the Philippine Islands v. El Hogar Filipino, 50 Phil. 399 (1927) q Atrium Management Corp. v. CA, 353 SCRA 23 (2001) q Safic Alcan & Cie v. Imperial Vegetable Oil Co. Inc., 355 SCRA 559 (2001) q Pirovano v. De la Rama Steamship Co., Inc., 96 Phil. 335 (1954) q Harden v. Benguet Consolidated Mining Co., 58 Phil. 140 (1933) q NPC v. Alonzo-Legasto, 443 SCRA 342 (2004) Marie Cecile R. Quintos UP College of Law 6

VI. CONTROL AND MANAGEMENT OF CORPORATIONS Read: I Campos, Chapter VII A. BOARD OF DIRECTORS OR TRUSTEES Read: I Campos, 340-383 1. General (Sec. 23) q Ramirez v. Orientalist Co., 38 Phil. 634 (1918) q Manila Metal Container Corp. v. PNB, 511 SCRA 444 (2006) q Filipinas Port Services v. Go, 518 SCRA 453 (2007) q Board of Liquidators v. Heirs of Maximo Kalaw, 20 SCRA 987 (1967) q Francisco v. GSIS, 7 SCRA 557 (1963) 2. Qualifications and Disqualifications (Sec. 23, 27) q Gokongwei , Jr. v. SEC, 89 SCRA 336 (1979) q Lee v. CA, 205 SCRA 752 (1992) q Detective and Protective Bureau v. Cloribel, 26 SCRA 256 (1968) 3. Election, Vacancies, Removal (Sec. 24, 25, 26, 28, 29) q Premium Marble Resources, Inc. v. Court of Appeals, 264 SCRA 11 (1996) q Monfort Hermanos Agricultural Devt. Corp. v. Monfort III, 434 SCRA 27 (2004) 4. Term (Sec. 23, 92, 108) 5. Meetings (Sec. 49, 53, 54, 92, 97, 101) q Lopez Realty Inc. v. Fortencha, 247 SCRA 183 (1995) q Tan v. Sycip, 499 SCRA 216 (2006) q Lopez v. Ericta, 45 SCRA 539 (1972) 6. Duties of Directors (Sec. 30-34; see SEC Memo Circular No. 6, series of 2009) Read: I Campos, Chapter VIII a. General Rule q Strategic Alliance Devt Corp v. Radstock Securities Ltd., et al, 607 SCRA 413 (2009), supra b. Duty of Diligence; Business Judgment Rule c. Fiduciary Duty q Republic of the Philippines v. Sandiganbayan (First Division), et al, 648 SCRA 47 (2011) (i) The self-dealing director (Sec. 32) (ii) Fixing of compensation (Sec. 30) (iii) Using inside information (SRC Sec. 3.8, 23, 27) Marie Cecile R. Quintos UP College of Law 7

(iv) Seizing corporate opportunity (Sec. 34) (v) Interlocking directors (Sec. 33) 7. Executive Committee (Sec. 35) q Filipinas Port Services Inc. v. Go, 518 SCRA 453 (2007), supra B. OFFICERS (Sec. 25) Read: I Campos, pp. 383-412 1. Definition q Matling Industrial and Commercial Corp., et al v. Coros, 633 SCRA 12 (2010) q Real v. Sangu Philippines Inc., 640 SCRA 67 (2011) q SEC Opinion dated Dec 16, 1991; SEC Opinion 37-11 dated September 1, 2011 2. General Rule q Vicente v. Geraldez, 52 SCRA 210 (1973) q Yao Ka Sin Trading v. CA, 209 SCRA 763 (1992) q Inter-Asia Investments Industries v. CA, 403 SCRA 452 (2003) 3. Exception q Board of Liquidators v. Heirs of Maximo Kalaw, 20 SCRA 987 (1967), supra q Woodchild Holdings Inc. v. Roxas Electric Construction Co, Inc., 436 SCRA 235 (2004) q Francisco v. GSIS, 7 SCRA 577 (1963) q Nyco Sales Corp. v. BA Finance Corp., 200 SCRA 637 (1991) q Peoples Air Cargo v. CA, 297 SCRA 170 (1998) q Rural Bank of Milaor v. Ocfemia, 325 SCRA 99 (2000) 4. Liabilities q Vazquez v. Borja, 74 Phil. 560 (1944) q Palay, Inc. v. Clave, 124 SCRA 638 (1993) q Tramat Mercantile Inc. v. CA, 238 SCRA 14 (1994) q Alba v. Yupangco, 622 SCRA 503 (2010) 5. In Domestic Corporations v. Corporations that are nationalized or partly-nationalized q SEC Opinion 09-03 dated January 21, 2009 C. STOCKHOLDERS OR MEMBERS 1. Vote (24, 72, 55-59; 6; 89, 100) Read: I Campos, pp. 413-436 q Tan v. Sycip, 499 SCRA 216 (2006), supra q SEC Opinion No. 26, s. 2003, dated March 22, 2003, addressed to Ms. Jaycel Sato (re: voting by trustees through the internet)

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q SEC Memorandum Circular No. 4, dated March 17, 2004 (re: voting by mail and one share-one vote policy); But see SEC OGC Opinion No. 02-10 2. Election of directors Read: I Campos, pp. 436-465 q Tan v. Sycip, 499 SCRA 216 (2006), supra 3. Removal of directors (Sec. 28) Read: I Campos, pp. 465-487 q Angeles v. Santos, 64 Phil. 697 (1937) 4. Approve fundamental changes (Sec. 6, 16, 38, 40, 42, 48, 77) Read: I Campos, pp. 487-501, II Campos, Chapter XIV 5. Others (Sec. 30, 32, 34, 43, 44, 62, 104) q Lee v. CA, 205 SCRA 752 (1992), supra 6. Pre-emptive Right (Sec. 39) 7. Stock Certificate (Sec. 64, 73) Read: II Campos, pp. 206-208 q Tan v. SEC, 206 SCRA 740 (1992) q De los Santos v. Republic, 96 Phil. 577 (1955) q Angeles v. Santos, 64 Phil. 697 (1937) q Makati Sports Club Inc. v. Cheng, 621 SCRA 103 (2010) q SEC Opinion No. 02-05, dated January 31, 2005 (re: bearer certificates) 8. Transfer Shares (Sec. 63, 90, 91) Read: II Campos, Chapter XV q Sunset View Condominium Corp. v. Campos, 104 SCRA 295 (1981) q Razon v. IAC, 207 SCRA 234 (1992) q Rural Bank of Salinas v. CA, 210 SCRA 510 (1992) q Batangas Laguna Tayabas Bus Co., Inc. v. Bitanga, 362 SCRA 365 (2001) q Rural Bank of Lipa City v. CA, 366 SCRA 188 (2001) q Ponce v. Alsons Cement Corp, 393 SCRA 602 (2002) q Republic v. Estate of Hans Menzi, 476 SCRA 20 (2005) (i) Forged and unauthorized transfers q J. Santamaria v. HSBC, 89 Phil. 780 (1951) q Neugene Marketing Inc. v. CA, 303 SCRA 295 (1999) 9. Right to receive dividends q CIR v. Manning, 66 SCRA 14, supra Marie Cecile R. Quintos UP College of Law 9

10. Inspect corporate records (Sec. 74) Read: I Campos, Chapter IX q Africa v. PCGG, 205 SCRA 39 (1992) q Veraguth v. Isabela Sugar Co., 57 Phil. 266 (1932) q Gonzales v. PNB, 122 SCRA 490 (1983) 11. Financial Statements (Sec. 75) 12. Appraisal right (Sec. 81-86, 105) Read: I Campos, pp. 501-507 13. Derivative suit (Interim Rules of Procedure for Intra-Corporate Controversies) Read: I Campos, Chapter X q SMC v. Kahn, 176 SCRA 447 (1989) q Chua v. CA, 443 SCRA 259 (2004) q Yu v. Yukayguan, 589 SCRA 588 (2009) 14. Proportionate Share of Assets Upon Dissolution (Sec. 122) D. Devices Affecting Control Read: I Campos, pp. 513-640 1. Proxies (Sec. 58) q SEC Opinion dated June 14, 1995 addressed to Mr. Cesar Arambulo 2. Voting Trust (Sec. 59) 3. Pooling and voting agreements (Sec. 100) 4. Cumulative Voting 5. Classification of Shares 6. Restrictions on Transfers of Shares (Sec. 97, 98, 99) Right of first refusal, tag-along right, drag-along right q Lim Tay v. CA, 293 SCRA 634 (1998) q SEC Opinion dated June 8, 1995 addressed to Atty. Helen de Leon-Manzano 7. Prescribing qualifications for Directors; Founders Shares (Sec. 7) 8. Management contracts (Sec. 44) 9. Unusual voting and quorum requirements (Sec. 97) E. Meetings (Sec. 49-52, 54, 93) Marie Cecile R. Quintos UP College of Law 10

 VII. MERGER AND CONSOLIDATION (Sec. 76-80, 132) Read: II Campos, Chapter XVII q McLeod v. NLRC, 512 SCRA 222 (2007) q PNB v. Andrada Electric & Engineering Co., 381 SCRA 244 (2002) q Filipinas Post Services v. NLRC, 177 SCRA 203 (1989) VIII. FOREIGN CORPORATIONS Read: II Campos, Chapter XVIII

A. Definition (Sec. 123) B. Requirement for license to do business (Sec. 125-126, 129) q Avon Insurance PLC v. CA, 278 SCRA 312 (1997) C. Resident Agent (Sec. 127-128) q Expertravel & Tours Inc. v. CA, 459 SCRA 147 (2005) D. Concept of Doing Business (Sec. 3(d), R.A. No. 7042, as amended) q Mentholatum v. Mangaliman, 72 Phil. 525 (1941) q Agilent Technologies Singapore v. Integrated Silicon Technology Phil. Corp., 427 SCRA 593 (2004) q European Resources and Technologies, inc. v. Ingenieuburo Birkhanh + Nolte, 435 SCRA 246 (2004) q Cargill Inc. v. Intra Strata Assurance Corporation, 615 SCRA 304 (2010) E. Effect of doing business without a license (Sec. 133) q Eriks Ltd. v. CA, 267 SCRA 567 (1997) q Home Insurance Co. v. Eastern Shipping Lines, 123 SCRA 424 (1983) q Merrill Lynch Futures, Inc. v. CA, 211 SCRA 824 (1992) F. Amendment (Sec. 130-131) G. Revocation of license and withdrawal (Sec. 135-136) IX. DISSOLUTION Read: II Campos, Chapter XVI A. Voluntary Dissolution (Secs. 118-120) q Alhambra Cigar & Cigarette Mfg v. SEC, 24 SCRA 269 (1968), supra B. Involuntary Dissolution (Sec. 119; Sec. 6(l), PD 902-A; Sec. 2, Rule 66, Rules of Court)

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C. Special Cases: Dissolution of corporations sole (Sec. 115) and close corporations (Sec. 105) D. Effects q PNB v. CFI of Rizal, Pasig Br XXI, 209 SCRA 294 (1992) E. Liquidation (Sec. 122) q Clemente v. CA, 242 SCRA 717 (1995) q Reburiano v. CA, 301 SCRA 342 (1999) q Majority Stockholders of Ruby Industrial Corp. v. Miguel Lim, 650 SCRA 461 (2011) X. NON-STOCK CORPORATIONS (Sec. 87-95) q Review: Collector of Internal Revenue v. Club Filipino Inc. de Cebu, 5 SCRA 321 (1962) q Collector of Internal Revenue v. University of Visayas, 1 SCRA 669 (1961) See SEC Opinions dated February 24, 2003 (re: conversion of non-stock educational institution into a stock corporation), Feb 24 1989, Feb 28 2000 Re: Foundation - See Sec. 30 and 34(H), NIRC XI. CLOSE CORPORATIONS (Sec. 96-105) q Manuel R. Dulay Enterprises v. CA, 225 SCRA 678 (1993) q San Juan Structural and Steel Fabricators v. CA, 296 SCRA 631 (1998), supra q Sergio F. Naguiat v. NLRC, 269 SCRA 564 (1997) XII. SPECIAL CORPORATIONS Read: II Campos, Chapter XIX A. EDUCATIONAL CORPORATIONS (Sec. 106-108) B. RELIGIOUS CORPORATIONS (Sec. 109-116) q Iglesia Evangelica Metodista En Las Filipinas (Corporation Sole), Inc., et al v. Bishop Nathanael Lazaro, et al, 624 SCRA 224 (2010)

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 PART II SECURITIES REGULATION CODE (R.A. NO. 8799) Read: II Campos, pp. 90 139, SRC IRR 1. Applicability q Phil Veterans Bank v. Callangan, G.R. 191995 3 August 2011 2. Definitions (Sec. 3) a. Securities q Gabionza and Tan v. CA, 565 SCRA 38 GR No. 161057, Sept 12, 2008 q SEC-OGC Opinion No. 11-49 dated December 21, 2011 q See Sec. 2, BIR Revenue Regulations 14-2012 b. Insider 3. Registration of Securities (Sec. 8-11; SEC Memo Circular No. 4, s. 2011) q SEC v. Prosperity.com, Inc., 664 SCRA 28 (2012) q Power Homes Unlimited Corp. v. SEC, 546 SCRA 567 (2008) 4. Reportorial Requirements (Sec. 17-18) q See PSE Disclosure Rules 5. Protection of Shareholders Interests a. Tender Offers (Sec. 19) q Cemco Holdings v. National Life Insurance Company of the Phils, 529 SCRA 355 (2007) b. Proxy Solicitation (Sec. 20) c. Transactions of Directors, Officers and Principal Stockholders (Sec. 23) 6. Prohibitions on Fraud, Manipulation and Insider Trading (Sec. 24-27) q See http://www.sec.gov/litigation/complaints/2009/comp21332.pdf 7. Independent Directors (Sec. 38) q SEC Memorandum Circular No. 16, s. 2002 Guidelines on the Nomination and Election of Independent Directors q SEC Memorandum Circular No. 9, s. 2009

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