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Closure of Business. NLRC
Closure of Business. NLRC
Closure of Business. NLRC
A: The Court rules that the burden of proof that business losses actually
occurred rests on the employers. Since no statements of assets and
liabilities certified by a CPA or accounting firm was offered, nor the
corporations Income Tax Return certified by the BIR was shown, such
business losses were not proven. As regards the liability of the manager,
generally, the officers and members of a corporation are not personally
liable for the acts done in the performance of their duties. An exception is
when the employer corporation is no longer existing and is unable to
satisfy the judgment in favor of the employees. In such a case, the
officers should be held liable for acting on behalf of the
corporation. (Restaurante Las Conchas and/or David Gonzales vs.
Llego, 314 SCRA 24, Sept. 9, 1999)