BUS. ORG.

2 (2018)– OUTLINE 1
(Prof. M.I.P. Romero)

I. INTRODUCTION -- History (Roman, Medieval, England, USA, PH)

II. DEFINITION / ATTRIBUTES OF A CORPORATION

A. Artificial Being - Sec. 2, Corp. Code; Art. 44 (3), Civil Code

a) Commencement of juridical personality (JP) for:

1. Corporations – a) if created by special law/charter

b) if registered w/ SEC
c) if a corporation sole - 112 Corp. Code

2. Partnerships – a) if registered w/ SEC

b) if not registered w/ SEC
Note: Relate Art. 1784 to Arts. 1772 and 1768

3. Associations – Art. III, Sec 8, Constitution

4. Sole proprietorship
Mangila v. CA (GR 125027; 8/12/ 02)
Excellent Quality Apparel v. Win Multiple Rich Builders
578 SCRA 272 (2009)

b) Rights of a juridical person

Art. 46, New Civil Code
Art. III, Secs.1 and 2, Constitution
Bache & Co. (Phils.), Inc. v. Ruiz (37 SCRA 823; 1971)
Bataan Shipyard v. PCGG (150 SCRA 181; 1987)
Art. III, Sec. 11, Constitution
Good Shepherd Foundation, Inc. (A.M. No. 09-6-9 SC; 8/19/09)

c) Criminal Liability of a Corporation

See penal provisions of:
Anti-money Laundering Act (Sec. 14)
Trust Receipts Law (Sec. 13, PD 115, in relation to estafa
under Art. 315 , RPC)
 Ching v. Sec. of Justice 481 SCRA 609 (2006)
Tupaz IV v. CA 475 SCRA 398 (2005)

d) Liability for Torts / Negligence

PNB v. CA 83 SCRA 238 (1978)
Secosa v. Heirs of Francisco 433 SCRA 273(2004)
Professional Services, Inc. v. CA 611 SCRA 282(2010)

e) Entitlement to Moral Damages

ABS-CBN Corp. V. CA (361 Phil. 499; 1999)
Jardine Davies v. CA (GR 128066; 6/19/2000)
Crystal, et. al v. BPI (GR 172428; Nov. 2008)
Filipinas Broadcasting Network v. AMEC-BCCM
(GR 141994, Jan. 17, 2005)
Note: Mere obiter dictum ---
Mambulao Lumber v. PNB; 130 Phil. 366 (1968)
Pp. v. Manero, Jr.; GR 86883-85, (1993)

B. Created by Operation of Law – Art. XII, Sec. 16, Constitution

1. Private corporations
- Distinguish from public corporations
- Distinguish from quasi-public corporations
- Art.44 (1) and (2), NCC
- Special types of corporations - close corp., educational,
religious, ecclesiastical, lay, eleemosynary, civil, holding corp., parent,
subsidiary, affiliate, stock, non-stock, aggregate, corp. sole, de jure, de facto,
by estoppel.

2. GOCCs - distinguish from Govt. instrumentalities

– Give examples of GOCCs and Gis
Mla. Int’l Airport Authority v. CA (GR 155650; 7/20/ 2006)
Boy Scouts of the Phil. v. COA (GR 177131; 6/7/2011)

3. Corp. by prescription --- define

C. Right of Succession –
1. Rationale
2. Compare with:
- partnership (delectus personae)
 - sole proprietorship

D. Express/Implied/Incidental Powers - Sec. 45, 36-44

- Distinguish and Give Examples
Alternatively --- General (Sec. 36) and Specific powers (37- 44)
Intra vires and ultra vires acts of a corporation
- Distinguish from illegal acts
- Distinguish from ultra vires acts of the board or officers
To be discussed more fully and w/ cases in subsequent Outline

III. COMPARISONS/DISTINCTIONS --- Corporations/Partnerships

Sole proprietorships