COMMERCIAL LAW REVIEW

Course Outline
Second Semester, SY 2018-2019

Business Organizations in General

1. Yao Ka Sin Trading Vs. CA, 209 SCRA 763
2. Aurbach vs. Sanitary Wares Manufacturing Corporation, 180 SCRA 130
3. Mendez vs. People, 726 SCRA 203

Distinctions of Partnership and Corporation

Distinctions of Joint Account and Partnership

Advantages of a Corporation over other business organizations

Disadvantages of Incorporation

II. THE CORPORATION CODE

A. CORPORATION
1. DEFINITION
2. ATTRIBUTES OF A CORPORATION

B. CLASSES OF CORPORATIONS
1. Feliciano vs. CoA, 419 SCRA 363; January 14, 2003

C. NATIONALITY OF CORPORATIONS
i. Narra Nickel Mining and Development Corp. vs. Redmont Consolidated Mines
Corp., 722 SCRA 382
ii. Alilin vs. Petron Corporation, 725 SCRA 342
iii. S. Davis Winship vs. Philippine Trust Co., 90 Phil. 744
iv. Filipinas Compania de Seguros vs. Christern Huenfeld & Co., Inc. G.R. No. L-2294;
May 25, 1951

2. PLACE OF INCORPORATION TEST

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 3. CONTROL TEST
4. GRANDFATHER RULE

D. CORPORATE JURIDICAL PERSONALITY

1. University of Mindanao, Inc. vs. BSP, 778 SCRA 458
2. Nissan Car Lease Philippines, Inc. vs. Lica Management, Inc. 780
SCRA 400
3. Malixi vs. Mexicali Philippines, 792 SCRA 586
4. Ferro Chemicals, Inc. vs. Garcia, 804 SCRA 528
5. De Castro vs. Court of Appeals, 805 SCRA 265, October 5, 2016
6. Gulliermo vs. Uson, 785 SCRA 543
7. Republic vs. Mega Pasific eSolutions, Inc. 794 SCRA 414
8. Leo’s Restaurant and Bar Café vs. Bensing 806 SCRA 596
9. Lee vs. Samahang Manggagawa ng Super Laminatins (SMSLS-
NAFLU-KNU), 809 SCRA 313
10. Mayor vs. Tiu, 810 SCRA 256
11. Dimson vs. Chua, 811 SCRA 630
12. People’s Security, Inc. vs. Flores, 812 SCRA 260
13. Olongapo City vs. Subic Water and Sewerage Co., Inc. 732 SCRA
132
14. Livesey vs. Binswanger Philippines, Inc., 719 SCRA 433
15. Pacific Rehouse Corporation vs. Court of Appeals, 719 SCRA 665
16. WPM International Trading, Inc. vs. Labayen, 735 SCRA 297
17. Mirant (Philippines) Corporation vs. Caro, 723 SCRA 465
18. Commissioner of Customs vs. Oiling International Corporation, 728
SCRA 469
19. Aboitiz Equity Ventures, Inc. vs. Chiongbian, 729 SCRA 580
20. Palm Avenue Holding Co., Inc. vs. Sangiganbayan 5th Division, 732
SCRA 156
21. WPM International Trading, Inc. vs. Labayen, 735 SCRA 297
22. Hermano Oil Manufacturing & Sugar Corporation vs. Toll
Regulatory Board, 742 SCRA 395
23. Philippine National Bank vs. Hydro Resources Contractors
Corporation, 693 SCRA 294
24. PNB vs. Hydro Resources Contractors Corporation, 693 SCRA 294
25. Fortun vs. Quinsayas, 690 SCRA 623
26. Cebu Bionic Supply, Inc. vs. DBP, 635 SCRA 13
27. Delima vs. Gois, 554 SCRA 737 (2008)
28. Booc vs. Bantuas, 354 SCRA 279
29. Bautista vs. Auto Parts Traders, Inc. 561 S 223
30. Boyer-Roxas vs. CA, 211 S 470
31. Saw vs. Ca, 195 S 740
32. Prudential Bank vs. Alviar, 464 S 353 (July 2005)
33. Lanuza vs. BF Corporation, 737 S 275 (October 2014)
34. Cebu Filveneer Corp. vs. NLRC, 286 SCRA 556Sunio vs. NLRC, 127
SCRA 391
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 35. Consolidated Bank and Trust Corporation vs. CA, 356 SCRA 670
36. Secosa vs. Heirs of Erwin Suarez Francisco, 433 SCRA 263
37. Powton Conglomerate Inc. vs. Agcolicol, 400 sCRA 523
38. Luxuria Homes, Inc. vs. CA, 302 S 315
39. Viemar Dev. Corp. vs. Elacosa, 777 SCRA 239 (December 2015)
40. PNB vs. Andrada Electric & Engineering Company, 381 SCRA 145
(April 17, 2002)
41. Solidbank Corporation vs Mindanao Ferroalloy Corporation, 464 S
409 (July 28, 2005)
42. Gala vs. Ellice Agro-Industrial Corporation, 418 SCRA 431
(December 11, 2003)
43. Luxuria Homes, Inc. vs. CA, 302 S 315
44. Pabalan vs. NLRC, 184 SCRA 495
45. Azcor Mfg. Inc. vs. NLRC, 303 SCRA 26
46. Prince Transport, Inc. vs. Garcia, 639 SCRA 312 (Jan. 12, 2011)
47. Eric Godfrey Stanley Livesey vs. Binswanger Philippines, Inc. G.R.
No. 177493, March 19, 2014
48. Lipat vs. Pacific Banking Corporation, 402 SCRA 339
49. R & E Transport Inc. vs. Latag, 422 SCRA 698
50. Heirs of Ramon Durano, Sr. et.al. versus Uy, et.al, 344 SCRA 238
51. Pamplona Plantation Company, INc. vs. Tinghil, 450 SCRA 421,
February 3, 2005
52. Lipat vs. Pacific Banking Corporation 402 SCRA 339 April 30, 2003
53. De Leon vs. NLRC, 358 SCRA 275
54. Rovels enterprises, Inc. vs. Ocampo, 391 SCRA 176, October 17,
2002
55. Mendoza vs. Banco Real Development Bank, 470 SCRA 86
September 16, 2005
56. Reynoso IV vs. CA, 345 SCRA 335; November 22, 2000
57. Ramoso vs. CA, 374 SCRA 463; December 8, 2000
58. Secosa vs. Heirs of Erwin Suarez Francisco, 433 SCRA 273; June 29,
2004
59. Rosales vs. New A.N.J.H. Enterprises, 767 SCRA 149; August 18,
2015
60. Martinez vs. CA; 438 SCRA 130; September 10, 2004
61. EPG Construction Co., Inc. vs. CA, 210 SCRA 230
62. Onate vs. LBP, 364 SCRA 375
63. Jardine Davies, Inc. vs. JRB Realty, Inc. 463 SCRA 555 (July 15, 2005)
64. PNB vs. Ritratto Group, Inc. 363 SCRA 216 (July 31, 2001)
65. Marubeni Corporation vs. Lirag, 363 SCRA 620
66. Borromeo vs. CA, 550 S 269; March 28, 2008

2. DOCTRINE OF SEPARATE JURIDICAL PERSONALITY

i. LIABILITY FOR TORTS AND CRIMES
ii. RECOVERY OF MORAL DAMAGES
1. Mambulao Lumber Co. vs. PNB, 22 SCRA 359
2. Ren Transport Corp. vs. NLRC, 794 SCRA 498, 2016
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 3. Bache & Co., Inc. vs. Ruiz, 37 SCRA 825
4. Bataan Shipyard & Engineering Co., Inc. vs. PCGG, 150 scra 181
5. PNB VS. CA, 83 scra 237
6. Time, Inc. vs. Reyes, 39 SCRA 303

3. DOCTRINE OF PIERCING THE CORPORATE VEIL

i. GROUNDS FOR APPLICATION OF DOCTRINE
ii. TEST IN DETERMINING APPLICABILITY

E. INCORPORATION AND ORGANIZATION

i. Samahang Optometrists sa Pilipinas, et.al. vs. Acebedo Int’l., et.al. 270
SCRA 298
2. NUMBER AND QUALIFICATIONS OF INCORPORATORS
3. CORPORATE NAME; LIMITATIONS ON USE OF CORPORATE NAME
1. Indian Chamber of Commerce Phils., Inc. vs. Filipino Indian
Chamber of Commerce in the Philippines, Inc., 799 SCRA 278
2. Philips Export B.V. vs. CA, 206 SCRA 457
3. Universal Mills Corporation vs. Universal Textile Mills, Inc., 78 SCRA
62
4. Industrial Refractories Corporation of the Philippines, Inc. vs. CA,
390 SCRA 252; October 3, 2002
5. GSIS Family Bank vs. BPI Family Bank, G.R. No. 175278; September
23, 2015
6. In the Matter of Lyceum of the Philippines vs. Lyceum of Aparri,
et.al., SEC Case No. 2611; June 25, 1990
7. Ang mga Kaanib sa Iglesia ng Dios Kay Kristo Hesus, H.S.K. sa
Bansang Pilipinas, Inc. v. Iglesia ng Dios Kay Kristo hesus, Haligi sa
Suhay ng Katotohanan, Inc. 372 SCRA 171
8. Republic Planters Bank vs. CA, 216 SCRA 738

4. CORPORATE TERM

5. MINIMUM CAPITAL STOCK AND SUBSCRIPTION REQUIREMENTS

6. ARTICLES OF INCORPORATION
i. NATURE AND FUNCTION OF ARTICLES
ii. CONTENTS
iii. AMENDMENT
iv. NON-AMENDABLE ITEMS

7. REGISTRATION AND ISSUANCE OF CERTIFICATE OF INCORPORATION

i. De Facto Corporation
1. Pioneer Insurance vs. CA, 175 SCRA 668
2. Pioneer Insurance & Surety Corporation vs. CA, 175 SCRA 668
ii. Corporation by Estoppel
1. People vs. Garcia, et.al., 271 SCRA 621
2. Christian Children’s Fund vs. NLRC, 174 SCRA 174
iii. Corporation by Prescription
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 1. Pioneer Insurance vs. CA, 175 SCRA 668
2. Christian Children’s Fund vs. NLRC, 174 SCRA 174
3. Pioneer Insurance & Surety Corporation vs. CA, 175 SCRA 668

8. ADOPTION OF BY-LAWS
1. PMI Colleges vs. NLRC, 277 SCRA 462
ii. NATURE AND FUNCTIONS OF BY-LAWS
iii. REQUISITES OF VALID BY-LAWS
iv. BINDING EFFECT
v. AMENDMENT OR REVISION

F. CORPORATE POWERS
1. GENERAL POWERS: THEORY OF GENERAL CAPACITY
1. University of Mindanao, Inc. vs. BSP, 778 SCRA 458
2. Magallanes Watercraft Association, Inc. vs. Auguis, 791 SCRA 445
3. Agdao Landless Residents Association, Inc. vs. Maramion, 806 SCRA
74
4. Bank of Commerce vs. Radio Philippines Network, Inc. 722 SCRA
520
5. Esguerra vs. Holcim Philippines, Inc. 704 SCRA 490
6. Swedish Match Philippines, Inc. vs. The Treasurer of the City of
Manila, 700 sCRA 428

2. SPECIFIC POWERS: THEORY OF SPECIFIC CAPACITY

i. POWER TO EXTEND OR SHORTEN CORPORATE TERM
1. Alhambra Cigar & Cigarette Manufacturing Co., INc. vs. SEC, 24
SCRA 269

ii. POWER TO INCREASE OR DECREASE CAPITAL STOCK OR INCUR, CREATE

BONDED INDEBTEDNESS
1. SEC Opinion, July 29, 1993
2. SEC Opinion, May 14, 1990
3. SEC Opinion, August 25, 1965
4. SEC Opinion, February 19, 1981

iii. POWER TO DENY PRE-EMPTIVE RIGHTS

1. Benito vs. SEC, 123 SCRA 722

iv. POWER TO SELL OR DISPOSE OF CORPORATE ASSETS

1. Y-I Leisure Philippines, Inc. vs. Yu, 770 SCRA 56; September 8, 2015
2. Bulk Sales Law

v. POWER TO ACQUIRE OWN SHARES

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 vi. POWER TO INVEST CORPORATE FUNDS IN ANOTHER CORPORATION OR
BUSINESS
1. De La Rama vs. Ma-ao Sugar Central Co., Inc. 27 SCRA 260
2. Gokongwei vs. SEC, 89 SRA 336

vii. POWER TO DECLARE DIVIDENDS

1. Nielson & Co., Inc. vs. Lepanto Consolidated Mining, Co., 26 SCRA
542
2. Aranas vs. Tutaan, 127 SCRA 828

viii. POWER TO ENTER INTO MANAGEMENT CONTRACTS

ix. ULTRA VIRES ACTS

a. University of Mindanao, Inc. vs. BSP, 778 SCRA 458; January
11, 2016
b. Magallanes Watercraft Association, Inc. vs. Auguis; G.R. No.
211485; May 30, 2016
c. Atrium Management Corporation vs. CA, 353 SCRA 23;
February 28, 2001
d. Republic vs. Acoje Mining Co., Inc. 7 SCRA 361

2. APPLICABILITY OF ULTRA VIRES DOCTRINE

3. CONSEQUENCES OF ULTRA VIRES ACTS

3. HOW EXERCISED
i. BY THE SHAREHOLDERS
ii. BY THE BOARD OF DIRECTORS
iii. BY THE OFFICERS

4. TRUST FUND DOCTRINE

G. BOARD OF DIRECTORS AND TRUSTEES

1. Florete, Jr. vs. Florete, Sr., 781 SCRA 255
2. Tom vs. Rodriguez, 797 SCRA 60
3. De Castro vs. CA, 805 SCRA 265
4. Fausto vs. Multi Agri-Forest and Community Development
Cooperative (formerly MAF Camarines Sur Employees Cooperative,
Inc.) 806 SCRA 50
5. Agdao Landless Residents Association, Inc. vs. Maramion, 806 SCRA
74
6. Cosare vs. Broadcom Asia, Inc. 715 SCRA 534
7. Laborte vs. Pagsanjan Tourism Consumers Cooperative, 713 SCRA
536
8. Olongapo City vs. Subic Water and Sewerage Co., Inc. 732 SCRA
132
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 9. Lanuza Jr., vs. BF Corporation, 737 SCRA 275
10. FVR Skills and Services Exponents, Inc. (SKILLEX) vs. Seva 739 SCRA
271
11. Montallana vs. La Consolacion College Manila, 744 SCRA 163
12. Heirs of Fe Tan Uy vs. International Exchange Bank, 690 SCRA 519
13. Saverio vs. Puyat, 710 SCRA 747
14. Heirs of Fausto C. Ignacio vs. Home Bankers Savings and Trust
Company, 689 SCRA 173
15. Abbot Laboratories, Philippines vs. Alcaraz, 701 SCRA 682
16. Polymer Rubber Corporatin vs. Salamuding, 702 SCRA 153
17. Montelibano vs. Bacolod-Muircia Milling Co., Inc. 5 SCRA 36
18. San Juan Structural & Steel Fabricators, Inc. vs. CA, 296 SCRA 631
19. Aguenza vs. Metropolitan Bank and Trust Co., 271 SCRA 1
20. AF Realty & Development Inc., Dieselman Freight Services Co., 373
SCRA 385
21. Kwok vs. Philippine Carpet Manufacturing Corporation, 457 SCRA
465; April 28, 2005
22. De Liano vs. CA, 370 SCRA 355; November 22, 2001
23. Associated Bank vs. Pronstroller, 558 SCRA 113
24. George vs. Holy Trinity College, Inc., 797 SCRA 551; July 20, 2016
25. Woodchild Holdings, Inc. vs. Roxas Electric and Construction
Company, Inc. 436 SCRA 235; August 12, 2004
26. DBP vs. Spouses Francisco Ong and Leticia Ong, 460 SCRA 170
27. Nissan Car Lease Phils., Inc. vs. Lica Management, Inc. 780 SCRA
400; Jan. 13, 2016
28. Inter-Asia Investments Industries, Inc. vs. CA; 403 SCRA 451; June
10, 2003
29. Great Asian Sales Center Corp. vs. CA, 381 SCRA 557
30. Soler vs. CA, 358 SCRA 57
31. Villamor, Jr. vs. Umale, 736 SCRA 325 (September 24, 2014)
32. Juanito Ang, for and in behalf of Sunrise Marketing (Bacolod), Inc.
vs. Sps. Roberto and Rachel Ang, G.R. No. 201675, June 19, 2013
33. Bitong vs. CA, 292 SCRA 503
34. Villamor Jr. vs. Umale, 736 SCRA 325; September 24, 2014
35. Republic Bank vs. Cuaderno, 19 SCRA 671
36. Ching vs. Subic Bay Golf and Country Club, Inc. 734 SCRA 569;
September 10, 2014
37. Chua vs. CA, 443 SCRA 259
38. Lim vs. Lim-Y, 352 SCRA 216
39. Visayan vs. NLRC, 196 SCRA 410
40. Arguenza vs. Metropolitan Bank & Trust Co., 271 SCRA 1

2. DOCTRINE OF CENTRALIZED MANAGEMENT

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3. DOCTRINE OF APPARENT AUTHORITY
1. George vs. Holy Trinity College, Inc., 797 SCRA 551; July 20, 2016
2. Woodchild Holdings, Inc. vs. Roxas Electric and Construction Co.,
Inc. 436 SCRA 235
3. BPI Family Savings Bank, Inc. vs. First Metro Investment
Corporation, 429 SCRA 30; May 21, 2004
4. Yao Ka Sin Trading vs. CA; 209 SCRA 763

4. BUSINESS JUDGMENT RULE

5. TENURE, QUALIFICATIONS AND DISQUALIFICATIONS OF DIRECTORS OR TRUSTEES

1. Gokongwei vs. SEC, 89 SCRA 336
2. Grace Christian High School vs. CA, 281 SCRA 133
3. Lee vs. CA, 205 SCRA 752
4. Quimson vs. Pasay-Paz, SEC-EB Case No. 260, March 21, 1991
5. Rio Grande Rubber Estate Co. vs. Board of Liquidators, G.R. No. L-
11321; November 28, 1958
6. Garcia vs. Diapo, SEC Case No. 2169; July 30, 1990

6. ELECTIONS
i. CUMULATIVE VOTING/STRAIGHT VOTING
ii. QUORUM

7. REMOVAL
1. Bernas vs. Cinco, G.R. No. 163356-57; July 1, 2015

8. FILLING OF VACANCIES

9. COMPENSATION
1. Central Cooperative Exchange, Inc. vs. Ibe, 33 SCRA 593
2. Manila Taxicab & Garage Inc. vs. Court of Industrial Relations, 99
Phil 43
3. Lexal Laboratories vs. National Chemical Industries Workers Union,
25 SCRA 669
4. Peralta vs. Mathay, 38 SCRA 260
5. Western Institute of Technology, Inc. vs. Salas, 278 sCRA 216

10. RULES ON FIDUCIARIES’ DUTIES AND LIABILITIES

1. Benguet Electrc Cooperative, Inc. vs. NLRC, 209 SCRA 55
2. Bank of Commerce vs. Marilyn P. Niete, G.R. no. 211535; July 22, 2015
3. Solidbank Corporation vs. Mindanao Ferroalloy Corporation, et.al., 464
SCRA 409; July 29, 2005
4. Prudential Bank vs. Alviar, 464 SCRA 353
5. Pioneer Insurance & Surety Corporation vs. Morning Star Travel & tours,
Inc. et.al., 762 SCRA 283; July 8, 2015
6. Rivera vs. Genesis Transport Services Inc., 764 SCRA 283 July 8, 2015
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 11. RESPONSIBILITY FOR CRIMES
1. Saludaga vs. Far Eastern University, 553 SCRA 741; April 30, 2008
2. Queensland-Tokyo Commodities, Inc. vs. George, 630 SCRA 304;
September 8, 2010
3. Garcia vs. SSS Commission Legal and Collection, 540 SCRA 459;
December 17, 2007
4. Ong vs. CA, 401 SCRA 648; April 29, 2003

12. INSIDE INFORMATION

13. CONTRACTS
i. BY SELF-DEALING DIRECTORS WITH THE CORPORATION
ii. BETWEEN CORPORATIONS WITH INTERLOCKING DIRECTORS
14. EXECUTIVE COMMITTEE
15. MEETINGS
i. REGULAR OR SPECIAL
1. WHEN AND WHERE
2. NOTICE
ii. WHO PRESIDES
iii. QUORUM
iv. RULE ON ABSTENTION

H. STOCKHOLDERS AND MEMBERS

1. Forest Hills Golf and Country Club, Inc. vs. Fil-Estate Properties,
Inc., 797 SCRA 655
2. Philippine Associated Smelting and Refining Corporation vs. Lim,
804 SCRA 600
3. Ching vs. Subic Bay Golf and Country Club, Inc. 734 SCRA 569
4. Villamor, Jr. vs. Umale, 736 SCRA 325

2. RIGHTS OF STOCKHOLDERS AND MEMBERS

i. DOCTRINE OF EQUALITY OF SHARES

3. PARTICIPATION IN MANAGEMENT
i. PROXY
ii. VOTING TRUST
1. Lee vs. CA, 205 SCRA 752

iii. CASES WHEN STOCKHOLDERS’ ACTION IS REQUIRED

1. BY A MAJORITY VOTE
2. BY A TWO-THIRDS VOTE
3. BY CUMULATIVE VOTING

4. PROPRIETARY RIGHTS
i. RIGHT TO DIVIDENDS
ii. RIGHT OF APPRAISAL

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 iii. RIGHT TO INSPECT
1. Terelay Investment and Development Corporation vs. Yulo, 765
SCRA 1; August 5, 2015
2. PASAR vs. Lim, 804 SCRA 600; October 5, 2016

iv. PRE-EMPTIVE RIGHT

v. RIGHT TO VOTE
vi. RIGHT TO DIVIDENDS
vii. RIGHT OF FIRST REFUSAL

5. REMEDIAL RIGHTS
i. INDIVIDUAL SUIT
ii. REPRESENTATIVE SUIT
iii. DERIVATIVE SUIT

6. OBLIGATIONS OF A STOCKHODER

7. MEETINGS
1. Guy vs. Guy, 790 SCRA 288
2.
ii. REGULAR OR SPECIAL
1. WHEN AND WHERE
2. NOTICE
iii. WHO CALLS THE MEETINGS
iv. QUORUM
v. MINUTES OF THE MEETINGS

I. CAPITAL STRUCTURE
1. SUBSCRIPTION AGREEMENTS

2. CONSIDERATION FOR SHARES OF STOCK

3. SHARES OF STOCK
1. Teng vs. Securities and Exchange Commission (SEC), 784 SCRA 216
2. Interport Resources Corporation vs. Securities Specialist, Inc. 792
SCRA 155
3. Ferro Chemicals, Inc. vs. Garcia, 804 SCRA 528
4. Interport Resources Corporation vs. Securities Specialist, Inc. 792
SCRA 155
5. Banco de Oro vs. Republic, 800 SCRA 392
6. Forest Hills Golf & Country Club vs. Vertex Sales and Trading, Inc.,
692 SCRA 706
7. Gersip Association Inc vs. Government Service Insurance System,
707 SCRA 481

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 8. Fil-Estate Golf and Development, Inc. vs. Vertex Sales and Trading,
Inc., 698 SCRA 272
9. Ang vs. Ang, 699 SCRA 272
10. Republic Planters Bank vs. Agana, et.al., 269 SCRA
11. Santamaria vs. Hongkong and Shanghai Banking Corporation, 89
Phil. 780
12. Philippine National Bank vs. Remio, G.R. No. 78508; March 21,
1994
13. CIR vs. Maning, 66 SCRA 14
14. Ong Yong vs. Tiu, 401 SCRA 1; April 8, 2003
15. National Exchange Co., Inc. vs. Dexter, 51 Phil 601

ii. NATURE OF SHARES OF STOCK

1. Silverio vs. Filipino Business Consultants, Inc. 466 SCRA 585; August
12, 2005
iii. CONSIDERATION FOR SHARES OF STOCK

iv. WATERED STOCK

1. DEFINITION
2. LIABILITY DIRECTORS FOR WATERED STOCKDS
3. TRUST FUND DOCTRINE FOR LIABILITY FOR WATERED STOCKS
4. SITUS OF THE SHARES OF STOCK
5. CLASSES OF SHARES OF STOCK

v. PAYMENT OF BALANCE OF SUBSCRIPTION

a. Lingayen Gulf Electric Power Co. vs. Baltazar, G.R. No. L-
2824; June 10, 1953

2. CALL BY BOARD OF DIRECTORS

3. NOTICE REQUIREMENT
4. SALE OF DELIQUENT SHARES
a. EFFECT OF DELINQUENCY
b. CALL BY RESOLUTION OF THE BOARD OF DIRECTORS
c. NOTICE OF SALE
d. AUCTION SALE AND THE HIGHEST BIDDER
vi. CERTIFICATE OF STOCK
1. NATURE OF THE CERTIFICATE OF STOCK
a. Silverio vs. Filipino Business Consultants, Inc. 466 SCRA 585;
August 12, 2005
b. Bitong vs. CA, 292 SCRA 503
2. Tan vs. SEC, 206 SCRA 740
3. Insigne vs. Abra Valley Colleges, Inc. 764 SCRA 261; July 29, 2015
4. De Los Santos vs. McGrath, 96 Phil 577

5. UNCERTIFICATED SHARES

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 6. NEGOTIABILITY
a. REQUIREMENT FOR VALID TRANSFER OF STOCKS
i. Anna Teng vs. SEC, G.R. No. 184332; February 17,
2016
ii. Interport Resources Corporation vs. SEC, Inc. G.R.
No. 154069; June 6, 2016
iii. Batangas Laguna Tayabas Bus Company, Inc. vs.
Bitanga, 362 SCRA 362; August 10, 2001
iv. Ponce vs. Alsons Cement Corporation, 393 SCRA
602; December 10, 2002
v. F & S Velasco, Inc. vs. Madrid, 774 SCRA 388;
November 10, 2015
vi. China Banking Corporation vs. CA, 270 SCRA 503

7. ISSUANCE
i. Razon vs. Intermediate Appellate Court, 207 SCRA
234
ii. Rural Bank of Lipa City, Inc. vs. CA, 366 SCRA 188;
September 28, 2001

b. FULL PAYMENT
c. PAYMENT PRO-RATA

8. LOST OR DESTROYED CERTIFICATES

vii. STOCK AND TRANSFER BOOK

a. Andaya vs. Rural Bank of Cabadbaran, Inc. et.al. G.R. No.
188769; Aug. 3, 2016
b. Ponce vs. Alsons Cement Corporation, 393 SCRA 602
c. Rural Bank of Salinas, Inc. vs. CA, 210 SCRA 510
d. Ferro Chemicals, Inc. vs. Garcia, et.al. G.R. No. 168134;
October 5, 2016

2. CONTENTS

3. WHO MAY MAKE VALID ENTRIES

viii. DISPOSITION AND ENCUMBRANCE OF SHARES

1. SALE OF SHARES
2. ALLOWABLE RESTRICTIONS ON THE SALE OF SHARES
3. REQUISITES OF A VALID TRANSFER
4. INVOLUNTARY DEALINGS WITH SHARES

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J. DISSOLUTION AND LIQUIDATION
1. Aguirre II vs. FQB+7, Inc., 688 SCRA 242
2. Vigilla vs. Philippine College of Criminology, Inc. 698 SCRA 247
3. Zuellig Freight and Cargo Systems vs. national Labor Relations
Commission, 701 SCRA 561
4. Knecht vs. United Cigarrette Corporation, 384SCRA 45 July 4, 2002
5. Metropolitan Bank and Trust Co., Inc. vs. Board of Trustees of
RMCPRF, 630 SCRA 350; September 8, 2010
6. Yam vs. CA, 303 SCRA 1
7. Alabang Development Corporation vs. Alabang Hills Village
Association, G.R. No. 187456; June 2, 2014

2. MODES OF DISSOLUTION
i. VOLUNTARY
1. WHERE NO CREDITORS ARE AFFECTED
2. WHERE CREDITORS ARE AFFECTED
3. SHORTENING OF CORPORATE TERM
ii. INVOLUNTARY
1. EXPIRATION OF CORPORATE TERM
2. NON-USE OF CORPORATE CHARTER OR CONTINUOUS
INOPERATION OF A CORPORATION
3. LEGISLATIVE DISSOLUTION
4. DISSOLUTION BY THE SEC ON GROUNDS UNDER EXISTING LAWS

3. METHODS OF LIQUIDATION
1. Viva Shipping Lines, Inc. vs. Keppel Philippines Marine, Inc. 784
SCRA 173
ii. BY THE CORPORATION ITSELF
iii. BY CONVEYANCE TO A TRUSTEE WITHIN A THREE-YEAR PERID
iv. BY MANAGEMENT COMMITTEE OR REHABILITATION RECEIVER
v. BY MANAGEMENT COMMITTEE OR REHABILITATION RECEIVER
vi. BY LIQUIDATION AFTER THREE YEARS

K. OTHER CORPORATIONS
1. NON-STOCK CORPORATIONS
1. Agdao Landless Residents Association, Inc. vs. Maramion, 806 SCRA
74
2. Ching vs. Quezon City Sports Club, Inc. 807 SCRA 46
3. Valley Golf & Country Club vs. Reyes, 774 SCRA 214; November 10,
2015

ii. DEFINITION
iii. PURPOSES
iv. TREATMENT OF PROFITS
v. DISTRIBUTION OF ASSETS UPON DISSOLUTION

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 2. CLOSE CORPORATIONS
3. SPECIAL CORPORATIONS
i. Roman Catholic Apostolic Adm. Of Davao Inc. vs. Land Re. Com., 102 Phil
596
ii. Register of Deeds of Rizal vs. ung Sui Si Temple 97 Phil 58
iii. Republic vs. Villanueva, 114 SCRA 875
iv. Republic vs. Gonong, 118 SCRA 729

4. FOREIGN CORPORATIONS
1. Communication Materials and Design, Inc. et.al. vs. CA, 260 SCRA
673
2. Huang Lung Bank, Ltd. Vs. Saulog, 210 SCRA 137
3. Agilent Technologies Singapore Ltd vs. integrated Silicon
Techonology Philippines Corporation, 427 SCRA 593
4. European Resources and Technologies, Inc. vs. Ingenieburo Birkhan
+ Nolte, 435 SCRA 246; July 26, 2014
5. Eriks Pte. Ltd. Vs. CA, 267 SCRA 567
6. MR Holdings Ltd vs. Bajar, 380 sCRA 617; April 11, 2002
7. Continental Micronesia, Inc. vs. Basso, 771 SCRA 329, September
23, 2015
8. Expertravel & Tours, Inc. vs. CA, 439 SCRA 147; May 26, 2005
9.

ii. BASES OF AUTHOIRYT OVER FOREIGN CORPORATIONS

1. CONSENT
2. DOCTRINE OF “DOING BUSINESS” (RELATED TO DEFINITION UNDER
THE R.A. NO. 7042 OR THE FOREIGN INVESTMENT ACT)
a. Air Canada vs. CIR, 778 SCRA 131; G.R. No. 169507; January
11, 2016

iii. NECESSITY OF A LICENSE TO DO BUSINESS

1. REQUISITES FOR ISSUANCE OF A LICNESE
2. RESIDENT AGENT
iv. PERSONALITY TO SUE
v. SUABILITY OF FOREIGN CORPORATIONS
vi. INSTANCES WHEN UNLICENSED FOREIGN CORPORATIONS MAY BE
ALLOWED TO SUE
vii. GROUNDS FOR REVOCATION OF LICENSE

L. MERGERS AND CONSOLIDATIONS

1. Philippine Geothermal, Inc. Employees Union vs. Unocal
Philippines, Inc. (now known as Chevron Geothermal Philippines
Holdings, Inc.) 804 SCRA 286
2. Bank of Commerce vs. Radio Philippines Network, Inc. 722 SCRA
520
3. CIR vs. Pilipinas Shell Petroleum Corporation 736 SCRA 623
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 4. CIR vs. Bank of Commerce, 709 SCRA 390
5. Philippine National Bank vs. Andrada Electric & Engineering Co.,
381 SCRA 245; April 17, 2002
6. Lozano vs. delos Santos, 274 SCRA 452
7. Poliand Industrial Limited vs. National DevelopmentCompany, 467
SCRA 501; August 22, 2005
8. Bank of Commerce vs. RPN, G.R. no. 195615; April 21, 2014
9. Babst vs. CA, 350 SCRA 341; January 26, 2001
10. CIR vs. Pilipinas Shell Petroleum Corporation, 726 SCRA 623,
September 29, 2014
11. BPI vs. BPI Employees Union, 627 SCRQ 590; August 10, 2010

2. DEFINITION AND CONCEPT

3. PLAN OF MERGER OR CONSOLIDATION
4. ARTICLES OF MERGER OR CONSOLIDATION
5. PROCEDURE
6. EFFECTIVITY
7. EFFECTS AND LIMITATIONS

M. MISCELLANEOUS PROVISIONS

III. SECURITIES REGULATION CODE (R.A. 8799)

1. Concorde Condominium Inc. vs. Baculio 784 SCRA 263
2. Guillermo vs. Uson, 785 SCRA 543
3. BSP vs. Campa, Jr. 787 SCRA 476
4. Forest Hills Golf and Country Club, Inc. vs. Fil-Estate Properties, Inc., 797
SCRA 655
5. De Castro versus Court of Appeals, 805 SCRA 265
6. Roman, Jr. vs. Securities and Exchange Commission, 791 SCRA 638
7. Cosare vs. Broadcom Asia Inc., 715 SCRA 534
8. POTC vs. Africa, 700 SCRA 453
9. People vs. Fernandez, 65 Phil.
10. Dee vs. SEC, 199 SCRA 238
11. Intestate Estate of Alexander Ty v. CA, 356 SCRA 661
12. SEC vs. Prosperity Com., Inc. G.R. No. 164197; January 25, 2012
13. Union Bank of the Philippines v. SEC, 358 sCRA 479; June 6, 2001
14. Palting v. San Jose Petroleum, Inc. 18 SCRA 924
15. Osmeña III v. SSS of the Philippines, 533 SCRA 313; September 13, 2007
16. Jardeleza v. Sereno, 733 SCRA 279; August 19, 2014

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IV. PRESIDENTIAL DECREE NO. 902-A
1. Alexander Ty vs. CA, 356 SCRA 66
2. Medical Plaza Makati Condominium Corp. vs. Cullen G.R. No. 181416;
November 11, 2013
3. Speed Distributiing Corp. vs. cA, 425 SCRA 691
4. Gonzales vs. GJH Land, Inc. G.R. No. 202664; November 10, 2015
5. Philip Go, et.al. vs. Distinction Properties, G.R. No. 194024’ April 25, 2012
6. Strategic Alliance DEv. Corp. vs. Star Infrastructure Dev. Corp, 635 SCRA
380 November 17, 2010
7. Real v. Sangu Phil Inc. 640 sCRA 67, January 9, 2011
8. Philcomsat vs.Sandiganbayan, G.R. no. 203023; June 17, 2015
9. Wesleyan University Phil. Vs. Maglaya, G.R. No. 212774; January 23, 2017
10. SEC vs CA 739 SCRA 99; October 22, 2014
11. Philippine Asset Growth Two, Inc. vs. Fastech Synergy Philippines, Inc.
794 SCRA 695; June 29, 2016
12. BPI Family Savings Bank Inc. vs. St. Michael Medical Center, Inc. G.R. No.
205469; March 25, 2015
13. Viva Shipping Lines, Inc. vs. Keppel Phil. Marine, Inc. 784 SCRA 173;
February 17, 2016
14. PNB vs. CA, 576 SCRA 537’ January 7, 2009
15. PRYCE CORPORATION VS. CA, 543 SCRA 657; February 4, 2008 (Serious
Situation Test)
16. Balayan Bay Rural Bank, Inc. vs. National Livelihood Dev. Corp. 771 SCRA
141; September 21, 2015
17. De Castro vs. Liberty Broadcasting Network, Inc. 629 SCRA 77; August 25,
2010
18. China Banking Corporation vs Cebu Printing Corp. 628 SCRA 154; August
11, 2010

V. BANKINGS LAWS
1. Land Bank of the Philippines vs. Kho, 796 SCRA 21
2. Banco de Oro vs. Republic 800 SCRA 392
3. University of Mindanao, Inc. vs. Bangko Sentral ng Pilipinas, 778 SCRA
458
4. Oliver vs. Philippine Savings Bank, 788 SCRA 189Philippine Savings Bank
vs. Barrera, 793 SCRA 486
5. Commissioner of Internal Revenue vs. Philippine National Bank, 796 SCRA
158
6. Gumabon vs. PNB, 798 SCRA 103
7. PNB vs. Raymundo, 813 SCRA 326
8. Sameer Overseas Placement Agency, Inc. vs. Cabiles, 732 SCRA 22
9. The Metropolitan Bank and Trust Company vs. Rosales, 713 SCRA 75
10. Silos vs. PNB, 728 SCRA 617
11. People vs. Go, 732 SCRA 216
12. Vivas vs. Monetary Board of the BSP, 703 SCRA 290

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 a. THE NEW CENTRAL BANK ACT (R.A. NO. 7653)

b. LAW ON SECRECY OF BANK DEPOSITS (R.A. NO. 1405, AS AMENDED)

c. GENERAL BANKING LAW OF 2000 (R.A. NO. 8791)

VI. SPECIAL LAWS

a. ANTI-MONEY LAUNDERING ACT (R.A. NO. 9160, AS AMENDED BY R.A. NO. 9194)
1. Subido Pagente Certeza Mendoza and Binay Law Offices vs. Court
of Appeals, 813 SCRA 1
2. Shu vs. Dee, 723 SCRA 512 (2014)
3.

b. FOREIGN INVESTMENTS ACT (R.A. NO. 7042)

1. Air Canada vs. CIR, 778 SCRA 131
2. Narra Nickel Mining and Development Corp. vs. Redmond
Consolidated Mines Corp., 722 SCRA 382

c. FOREIGN INVESTMENT LAW (REPUBLIC ACT NO. 8179)

d. RETAIL TRADE LIBERALIZATION ACT OF 2000 (R.A. 8762)

e. ELECTRONIC COMMERCE ACT OF 2000 (R.A. NO. 8792 ) AND A.M. 01-7-01-SC OR
THE RULES ON ELECTRONIC EVIDENCE

f. PHILIPPINE COMPETITION ACT (R.A. NO. 10667)

g. FINANCIAL REHABILITATION AND INSOLVENCY ACT OF 2010 (R.A. NO. 10142)

1. Philippine Asset Growth Two, Inc. vs. Fastech Synergy Philippines,
Inc. (formerly First Asia System Technology, Inc.), 794 SCRA 625
2. Viva Shipping Lines, Inc. vs. Keppel Philippines Marine, Inc. 784
SCRA 173
3. Pryce Properties Corporation vs. Octobre, Jr. 813 SCRA 90
4. Pryce Corporation vs. China Banking Corporation, 716 SCRA 207
5. Philippine Bank of Communications vs. Basic Polyprinters and
Packaging Corporation, 738 SCRA 561
6. Pryce Corporation vs. China Banking Corporation, 716 SCRA 207
7. Situs Dev. Corporation vs. Asiatrust Bank, 688 sCRA 621

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8. Steel Corporation of the Philippines vs. Mapfre Insular Insurance
Corporation, 707 SCRA 601
9. BPI vs. Sarabia Manor Hotel Corporation, 702 SCRA 432
10. Montenegro vs. Montenegro, 431 SCRA 417

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