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ASSIGNMENT NO. 9
COMMERCIAL LAW REVIEW
CORPORATION LAWS

Instructions: This assignment consists of ONE PAGE, with ten questions calling for the
application of pertinent provisions of the Financial Rehabilitation and Insolvency Act of 2010.
Answer the questions briefly and concisely, citing the legal basis therefore. In giving your
answers, treat each question independently, unless the question specifically makes reference
to another question in the problem. Place your answers in your quiz/assignment notebook.
Good luck!!!

PROBLEM:

MANYAMAN Food Corporation is a domestic corporation engaged in the manufacture and sale
of sausages and meat products, with principal place of office at No. 8, Matagumpay Street,
Diliman, Quezon City. Suffering financial reverses leading to a continuing inability to meet
liabilities as they fall due, MANYAMAN instituted voluntary rehabilitation proceedings in court.
Finding the petition for voluntary rehabilitation sufficient in form and substance, the court
issued a Commencement Order with a Stay or Suspension Order in favor of MANYAMAN.

State the effect of the Commencement Order, with a Stay or Suspension Order on the
following actions involving MANYAMAN. Explain your answer.

(1) A labor case pending appeal to the National Labor Relations Commission filed by five
former employees of MANYAMAN led by Facundo for illegal dismissal with claims for
unpaid wages and other monetary benefits, including damages. (5%)
(2) A labor case for illegal dismissal filed by Gener against MANYAMAN, which was
decided with finality by the Court of Appeals, the records of which are forwarded to
the Labor Arbiter for the conduct of execution proceedings.
(3) A criminal case filed against Randy (a director of the MANYAMAN) and Sophie (a
stockholder of MANYAMAN), for the issuance of watered stocks in favor of Sophie.
(5%)
(4) A criminal case for Estafa filed against Julian, a director of MANYAMAN, for
embezzlement of company funds. (5%)
(5) A civil case against MANYAMAN whereby MANYAMAN was adjudged liable for
damages amounting to Php 2Million. The case was decided by the Supreme Court
and the decision became final and executory. The case records was recently
forwarded to the court of origin for the conduct of execution proceedings. (5%)
(6) Small claims case for payment of Php 150,000.00 against MANYAMAN filed by
William. (5%)
(7) A civil case for ejectment with prayer for payment of rentals in arrears against
MANYAMAN instituted by Luisa, filed with the Metropolitan Trial Court. (5%)
(8) A dacion en pago of two (2) condominium units in the name of MANYAMAN to Jerry,
a corporate creditor. (5%)
(9) Extrajudicial foreclosure proceedings instituted by Thalia, a corporate creditor, over
certain company equipment and machinery mortgaged by MANYAMAN to secure a
loan amounting to Php 3Million.
(10) A sale of ten (10) airconditioning units by MALAMIG Airconditioning Services to
MANYAMAN amounting to Php 500,000.00.

Nothing Follows 