ASSIGNMENT NO.

4 ( 69 CASES)

MAM SHA- 1-10 TOTAL NO. OF CASES= 23 CASES

31-40
61-63

MAM ANALYN- 11-20 TOTAL NO. OF CASES= 23 CASES

41-50
64-66

DONNA- 21-30 TOTAL NO. OF CASES= 23 CASES

51-60
67-79

XIII. CAPITAL STRUCTURE: SHARES OF STOCK

1. Concept of "Capital Stock"
1. Central Textile Mills v. National Wage and Productivity Commission,
260 SCRA 368 [1996]
2. MSCI-NACUSIP Local Chapter v. National Wages and Productivity
3.Commission, 269 SCRA 173 (1997)
4. NTC v. Court of Appeals, 311 SCRA 508 (1999)

2. Classification of Shares (Sec. 6)

(a) Common Shares
5. Commissioner of Internal Revenue v. Court of Appeals, 301 SCRA
152 (1999)

(b) Preferred Shares

6. Republic Planters Bank v. Agana, 269 SCRA 1 [1997]
 Participating and Non-participating
 Cumulative and Non-cumulative
 Par Value and No Par Value

“Preferred stocks are those which entitle the shareholder to some

priority on dividends and asset distribution.”
7. Commissioner of Internal Revenue v. Court of Appeals, 301 SCRA
152 (1999)

8. Commissioner of Internal Revenue v. Lincoln Philippines Life

Insurance Co., 379 SCRA 423 (2002)

(c) Redeemable shares (Sec. 8)

9. Republic Planters Bank v. Agana, 269 SCRA 1 [1997]
10. Commissioner of Internal Revenue v. Court of Appeals, 301 SCRA
152 (1999)

(d) Founder Shares (Sec. 7)

(e) Treasury Shares (Sec. 9)
11. Commissioner v. Manning, 66 SCRA 14 [1975]

(f) Stock Warrants

 (g) Stock Options
(h) Re-Classification of Shares
12. Commissioner of Internal Revenue v. Court of Appeals, 301 SCRA
152 (1999)

3. Hybrid Securities
13. Government v. Phil. Sugar Estates, 38 Phil. 15 [1918]

4. Quasi-Reorganization
(a) Reduction of Capital Stock (Sec. 38)
14. Madrigal & Co. v. Zamora, 151 SCRA 355 (1987).

(b) Stock Splits

(c) Stock Consolidations

XIV. ACQUISITIONS, MERGERS AND CONSOLIDATIONS

A. Acquisitions and Transfers

1. Concept of "Enterprise" or "Economic unit" or "Going concern".

2. Types of Acquisitions\Transfers
(a) In a pure "assets only" transfer, the transferee is not
liable for the debts and liabilities of the transferor, except
where the transferee expressly or impliedly agree s to
assume such debts;
(b) In a transfer of the "business enterprise," the transferee is
liable for the debts and liabilities of the transferor; and
(c) In an "equity transfer," the transferee is not liable for the
debts and liabilities of the transferor, except where the
transferee expressly or impliedly agrees to assume such
debts.

15. PNB v. Andrada Electric, G.R. No. 142936, 17 April 2002]

3. Business Enterprise Transfers

16. A.D. Santos v. Vasquez, 22 SCRA 1156 [1968]
17. Laguna Transportation Co., Inc. v. SSS, 107 Phil. 833 [1960]
18. San Teodoro Dev. v. SSS, 8 SCRA 96 (1963).
19. Oromeca Lumber Co. v. SSS, 4 SCRA 1188 (1962)
20. Pepsi-Cola Bottling Co., v. NLRC, 210 SCRA 277 (1992).
21. Buan v. Alcantara, 127 SCRA 845 (1984).

1. Equity Transfers
22. Phividec v. Court of Appeals, 181 SCRA 669 [1990]
23. DBP v. NLRC, 186 SCRA 841 (1990).

2. Aspects as to Employees
24. Complex Electronics Employees Assn. v. NLRC, 310 SCRA 403 [1999]

B. Merger and Consolidation

1. Concepts
25. PNB v. Andrada Electric & Engineering Co., G.R. No. 142936, 17
April 2002
 2. Procedure:
(a) Plan of Merger or Consolidation (Sec. 76)
(b) Stockholders' or Members' Approval (Sec. 77)
(c) Articles of Merger or Consolidation (Sec. 78)
(d) Approval by SEC (Sec. 79)

Submission of Financial Statements Requirements

SEC Opinion 14, s. of 2002, 15 November 2002

In additional requirements by SEC for the processing of the application

3. Effects of Merger or Consolidation (Sec. 80)

26. Associated Bank v. Court of Appeals, 291 SCRA 511 [1998]
27. PNB v. Andrada Electric & Engineering Co., G.R. No. 142936, 17
April (2002)
28. Babst v. Court of Appeals, 350 SCRA 341 (2001)

C. Effects on Employees of Corporation

1. Assets Only Transfers
29. Sundowner Dev. Corp. v. Drilon, 180 SCRA 14 [1989)
30. MDII Supervisors & Confidential Employees Asso. V. Pres.
31. Assistance on Legal Affairs, 79SCRA 40 (1977)

2. Business-Enterprise Transfers
32. Central Azucarera del Danao v. Court of Appeals, 137 SCRA 295
[1985]
33. Yu v. NLRC, 245 SCRA 134 [1995]
34. Sunio v. NLRC, 127 SCRA 390 [1984]
35. San Felipe Neri School of Mandaluyong, Inc. v. NLRC, 201 SCRA
478 (1991)

3. Equity Transfers
36. Pepsi Cola Distributors of the Philippines, Inc. v. NLRC, 247 SCRA
386 (1995)
37. Manlimos v. NLRC, 242 SCRA 145 [1995]
38. Robledo v. NLRC, 238 SCRA 52 [1994]
39. Pepsi-Cola Bottling Co. v. NLRC, 210 SCRA 277 (1992)
40. Development Bank of the Philippines v. NLRC, 186 SCRA 841[1990]
41. Coral v. NLRC, 258 SCRA 704 [1996]
42. Avon Dale Garments, Inc. v. NLRC, 246 SCRA 733 [1995]

4. Mergers and Consolidations

43. Filipinas Port Services, Inc. v. NLRC, 177 SCRA 203 [1989]
44. Filipinas Port Services, Inc. v. NLRC, 200 SCRA 773 [1991]
45. National Union Bank Employees v. Lazaro, 156 SCRA 123 [1988]
46. First General Marketing Corp. v. NLRC, 223 SCRA 337 (1993)

5. Spin-Offs
47. SMC Employees Union-PTGWO v. Confessor, 262 SCRA 81 [1996]

XV. REHABILITATION AND INSOLVENCY

 BASIC LAW:

REPUBLIC ACT NO. 10142

titled
“AN ACT PROVIDING FOR THE REHABILITATION OR LIQUIDATION OF
FINANCIALLY DISTRESSED ENTERPRISES AND INDIVIDUALS”

Cross References:
1. Corporate Bankruptcy Laws in General
(a) Governing Laws (The Insolvency Act, PD 902-A, and The Securities
Regulation Code [RA 8799])
(b) Types of bankruptcy proceedings in the Philippines
(c) Resolution on jurisdiction issues on bankruptcy proceedings
48. Ching v. Land Bank of the Philippines, 201 SCRA 190 [1991]

2. Suspension of Payments
(a) Insolvency Law (Secs. 2 to 13)
- Situation of the corporate debtor
- Nature of petition
- Required vote of creditors
- Consequences of approval/non-approval
(b) Pres. Decree No. 902-A (Sec. 5[d]), Section 5.10 of The Securities
Regulation Code
(c) Supreme Court Interim Rules on Corporation Rehabilitation
(supplanted SEC Rules on Petition, SEC Memo, dated 7 October
1997)

3. Corporate Rehabilitation
(a) Nature of “Rehabilitation”
49. Ruby Industrial Corp. v. Court of Appeals, 284 SCRA 445 (1998)

(b) Basis of RTC Power to Undertake Corporate Rehabilitation

(Secs. 5[d] and 6, PD 902-A, Sec. 5.10, The Securities Regulation Code)

(c) SC Interim Rules on Corporate Rehabilitation

50. Chas Realty and Development Corporation v. Talavera, G.R.
No. 151925, 6 February 2003

(e) Appointment of Management Committee or a Rehabilitation

Receiver
51. Jacinto v. First Women’s Credit Corp. G.R. No. 154049, 29
August 2003.

(f) The Automatic Stay and its Legal Effects; When it becomes
effective
52. Barotac Sugar Mills, Inc. v. Court of Appeals, 275 SCRA 497
(1997);
53. reiterated in Union Bank v. Court of Appeals, 290 SCRA 198
[1998])

- Duration
54. B.F. Homes, Inc. v. Court of Appeals, 190 SCRA 262 [1990]
 - Effect on Individual Petitioners Joining the Petition
55. Union Bank of the Philippines v. Court of Appeals, 290 SCRA 198
(1998)
56. Modern Paper Products, Inc. v. Court of Appeals, 286 SCRA 749
(1998)
57. Traders Royal Bank v. Court of Appeals, 177 SCRA 788 [1989]
58. Chung Ka Bio v. Intermediate Appellate Court, 163 SCRA 534
[1988]

- Claims Covered by the Automatic Stay

59. PCIB v. Court of Appeals, 172 SCRA 436 [1989]
60. Alemar’s Sibal & Sons, Inc. v. Elbinias, 186 SCRA 94 [1990]
61. Rizal Commercial Banking Corp. v. IAC, 213 SCRA 830 [1992]
62. Bank of PI v. Court of Appeals, 229 SCRA 223 [1994]

- Types of “Claims” Covered

63. Finasia Investments v. Court of Appeals, 237 SCRA 446 [1994]
64. Rubberworld [Phils.], Inc. v. NLRC, 305 SCRA 721 (1999); 336
SCRAA 433 (2000)

(g) Rationale for Suspensive Effect of Appointment on Existing

Suits and Causes of Action

(h) Powers of Management Committee or the Rehabilitation

Receiver (Sec. 6, PD 902-A)
(i) SEC Power to Liquidate Corporation

(j) Basic Differences Between Suspension of Payments

Proceedings under the Insolvency Law and Under Pres. Decree
No. 902-A

4. Insolvency Proceedings
65. Chua v. NLRC, 190 SCRA 558 (1990).

(a) Governing Law and Jurisdiction

(b) General Effect of Corporate Insolvency Proceedings
(c) VOLUNTARY INSOLVENCY
(d) Filing of Petition (Sec. 14, TIL)
(e) Effect of Order of Insolvency (Sec. 18)
66. De Amuzategui v. Macleod, 33 Phil. 80 [1915]
67. Unson v. Abeto, 47 Phil. 42 [1924]

(f) INVOLUNTARY INSOLVENCY (Sec. 20 to 33)

(g) Qualifications of Petitioning Creditors

68. State Investment House, Inc. v. Citibank, N.A., 203 SCRA 9
(1991).

(h) Order to Show Cause (Sec. 21); Hearing of petition (Sec. 24)

(i) Acts of Insolvency and Order of Adjudication (Sec. 20)

(j) Meeting of Creditors to Elect Assignee (Secs. 29 and 30)
(k) Effects of Order of Insolvency and Appointment of Receiver
(Secs. 32, 34 and 35)
69. Radiola-Toshiba Phil. v. IAC, 199 SCRA 373 [1991])
(l) Liquidation of Assets and Payment of Debts (Sec. 33)
(m) Remedies of Secured Creditors (Sec. 29, 43 and 59)
(n) Composition (Sec. 63)
(o) Discharge (Secs. 52, 64, and 66)
(p) Appeal in certain cases (Sec. 82)