OUTLINE

CORPORATION LAW

TITLE I GENERAL PROVISIONS DEFINTIONS AND

CLASSIFICATIONS
Sec 1 to 9, Revised Corporation Code of the Philippines
Sec. 2 Corporation defined
Doctrine of separate juridical personality
Mayor v Tiu GR 203770 Nov 23, 2016
Tee Ling Kiat v Ayala Corp et al GR 192530 Mar 7, 2018
Vda de Roxas v Our Lady’s Foundation GR 182378 Mar 6, 2013
Pioneer Insurance Surety Corp v Morning Star Travel & Tours et al GR
198436 8 Jul 2015
University of Mindanao v BSP et al GR 194964 Jan 11, 2016
Doctrine of piercing the corporate veil; when doctrine was applied or
not; tests of applicability
Pacific Rehouse Corp et al v CA et al GR 199687 Mar 24, 2014
International Academy of Management and Economics v Litton and
Company Inc. GR 191525 Dec 13, 2017
Maricalum Mining v Florentino et al GR 221813 Jul 23, 2018
Maria Lea Jane Gesolgon et al v Cyberone Ph Inc. et al, GR 210741,
Oct 14, 2020
See Sec. 130 (one person corporation)
Distinguish from sole proprietorship, partnership, joint venture
Doctrine of limited liability
SC Megaworld v Engr Parada GR 183804 Sep 11, 2013
Saludo v PNB GR 193138 Aug 20, 2018
ABSCBN v Honorato Hilario et al GR 193136 Jul 10, 2019
See Sec 35(h)
Can a corporation recover moral damages?
See Arts 2217and 2219, Civil Code
BNL Management Corp et al v Reynaldo Uy, GR 210297 Apr 03, 2019
Sec 3 Classes of corporations
Constitution, Art. XII, Sec. 16
See Secs 86 to 132 (Nonstock corps up to special corps)
Twin Towers Condominium Corp v CA GR 123552 Feb 27, 2003
Sec 4 Corporations created by special laws or chapters
Liban et al v Gordon GR 175352 Jul 15, 2009
Adelaido Oriondo et al v COA GR 211293 Jun 4, 2019
See Sec 182
Gonzaga et al v COA GR 244816 Jun 29, 2021
Sec 5 Corporations and incorporators, stockholders and members
Trust Fund Doctrine
Halley v Printwell Inc GR 157549 May 30, 2011
Jennifer M Enano-Bote et al v Jose Ch Alvarez et al GR 223572 Nov 20,
2020
Ryuichi Yamamoto v Nishino Leather Industries Inc et al GR 150283
Apr 16, 2008
Agapito Salido v Aramaywan Metals Dev Corp, et al GR 233857 Mar
18, 2021
BCDA v CIR GR 205466 Jan 11, 2011
SECS 6 to 9, Revised Corporation Code of the Philippines
Jennifer Enano-Bote, et al v Jose Ch Alvarez, et al, GR No 223572 Nov
10, 2020
Philippine Trust Company v Rivera GR L-19761 Jan 29, 1923
See Secs. 6 and 42 (what is “capital”)
See also Arts 1313, 1381[3] and 1387, Civil Code
Sec 6 Classification of shares
Castillo et al v Balinghasay et al GR 150976 Oct 18, 2004
Doctrine of equality of shares
Gamboa et al v Teves et al GR 176579 Jun 28, 2011;Heirs of Gamboa
et al v Teves et al GR 176579 Oct 9, 2012 (Resolution on MR)
Castillo et al v Balinghasay et al GR 150976 Oct 18, 2004
Sec 7 Founder’s shares
Sec 8 Redeemable shares
SEC Rules Governing Redeemable and Treasury Shares
Republic Planters Bank v Agana 269 SCRA 1 (1997)
Sec 9 Treasury shares
Power of corporation to acquire its own shares – Sec 40
No voting rights – Sec 56
Not included in “outstanding capital stock” – Sec 173

TITLE II INCORPORATION AND ORGANIZATION OF

PRIVATE CORPORATIONS
Sec 10 to 12, Revised Corporation Code of the Philippines
Pre-incorporation agreement
Fong v Duenas GR 185592 Jun 15, 2015
Subscription contract (See Secs. 59 and 60)
Sec 10 Number and qualifications of incorporators
Care Best International, Inc. v SEC GR 215510 Mar 16, 2015
Freddie Guillen v Atty. Audie Arnado AC 10547 Nov 8, 2017
Sec 11 Corporate Term
CRMD v Ching Bee Trading Corp GR 205291 Nov 12, 2014
Chua et al v People GR 216146 Aug 24, 2016
Alhambra Cigar v SEC 24 SCRA 269 (1968) GR L-23606 [Doctrine of
relation (or relating back doctrine) ]
First Philippine Holdings v SEC GR 206673 July 28, 2020
Sec 12 Minimum Capital Stock Not Required Of Stock Corporations
See Sec 14 which refers to the Seventh Article on authorized capital
stock
See also Sec 37 fourth par which still prescribes minimum subscribed
and minimum paid up for increase in capital stock

Sec 13 to 18, Revised Corporation Code of the Philippines

Sec 13 Contents of articles of incorporation
Interpretation of articles/bylaws
Forest Hills v Gardpro Inc GR 164686 Oct 22, 2014
United Church of Christ in the Philippines, Inc. v Bradford United
Church of Christ Inc., et al GR 171905 Jun 20, 2012
Purpose Clause
Asuncion v De Yriarte GR 9321 Sep 24, 1914
Leo Y. Querubin, et al v Comelec et al, GR 218787 Dec 8, 2015
See Sec 34 for non-stock corporations
Principal Place of Business
SEC Circular No 3, Series of 2006
See also Title VI on Meetings Secs 50 and 52 last par.
Pilipinas Shell Petroleum Corp. v Royal Ferry Services Inc. GR 188146
Feb 1, 2017
Hygienic Packaging v Nutri Asia GR 201302 JAN 23, 2019
Authorized capital stock
Central Textile Mills v NWPC, et al GR 104102 Aug 7, 1996
Sec 14 Form of articles of incorporation
Sec 15 Amendment of articles of incorporation
Filing fees
First Philippine Holdings Corporation v SEC GR 206673 Jul 28, 2020
SEC v GMA Network Inc. GR 164026 Dec 23, 2008
Sec 16 Grounds when articles of incorporation or amendment may be
disapproved
Rafael H. Galvez and Katherine L. Guy v Hon. CA and AUB GR 187919
Apr 25, 2012
Sec 17 Corporate name
SEC Revised Guidelines on the Approval of Corporate and Partnership
Names
First in time, first in right (priority of adoption rule)
Indian Chamber of Commerce Phils, Inc v Filipino Indian Chamber of
Commerce in the Philippines, Inc. GR 184008 Aug 3, 2016
GSIS Family Bank v BPI Family Bank GR 175278 Sep 23, 2015
Corporate name v business name or brand
Philips Export B.V. v CA GR 96161 (1992)
Generic or descriptive
De La Salle Montessori International of Malolos, Inc. v De La Salle
Brothers, Inc., et al GR No 205548 Feb 7, 2018
Sec 18 Registration, incorporation and commencement of corporate
existence
The People of the Philippines v William Quasha GR L-6055 Jun 12,
1953 (read in relation to fraud/falsification in. procuring registration)

Sec 19 to 20, Revised Corporation Code of the Philippines

Sec 19 De Facto Corporation
Arnold Hall v Piccio 86 Phil 603 (1950)
Seventh Day Adventist Conference Church et al v Northeastern
Mindanao Mission, et al GR 150416 Jul 21, 2006
International Express Travel & Tour Services Inc v CA 343 SCRA 674
Oct 19, 2000
Sec 20 Corporation By Estoppel
The Missionary Sisters of our Lady of Fatima v Alzona GR 224307 Aug
6, 2018
Priscilo B Paz v New International Environmental Universality GR
203993 Apr 20, 2015
See Civil Code provisions on estoppel
Sec 21 Effects Of Non-Use Of Corporate Charter And Continuous
Inoperation Of A Corporation

TITLE III BOARD OF DIRECTORS/TRUSTEES AND

OFFICERS
SECS 22 to 29, Revised Corporation Code of the Philippines
Herbosa, et al. pp. 96 to 110

Sec 22 The Board Of Directors Or Trustees

Doctrine of centralized management
Ago Realty & Dev Corp et al v Dr Angelita F Ago et al GR 210906 Oct
16, 2019
Yao Ka Sin Trading v CA et al GR 53820 209 SCRA 763 June 15, 1992
Hornilla v Salunat 405 SCRA 220 (2003)
Manila Metal Container Corp v PNB 511 SCRA 444 (2006)
Benguet Electric Cooperative Inc. v NLRC 209 SCRA 55, May 18,1992
People’s Aircargo v CA 297 SCRA 170 (1998)
DBP v Sta Ines Melale Forest Products GR 202364 Aug 30, 2017
University of Mindanao v BSP et al GR 194964, Jan 11, 2016
Doctrine of delegated authority
San Juan Structural and Steel Fabricators, Inc. v CA, 296 SCRA 631
(1998)
ABS-CBN Broadcasting v CA 301 SCRA 572 (1999)
Business judgment rule
Cesar Villanueva, “Revisiting the Fiduciary Duties of the Board of
Directors and Management (Part 2); Business World, 21 November
2017
Ingersoll v The Malabon Sugar Company GR L-27770, Dec 31, 1927
Montelibano v Bacolod Murcia Milling Co., 5 SCRA 36 (1962)
Republic Telecommunication Holdings Inc. v CA GR 13507 Jan 29,
1999
Ong Yong et al v David Tiu GR 144476 Apr 8, 2003
Filipinas Port Service v Go 518 SCRA 453 (2007)
PSE v Honorable Court of Appeals GR 125469 Oct 27, 1997
Catherine Ching, et al v Quezon City Sports Club et al GR 200150 Nov
7, 2016
Corporations vested with public interest;
Principles of good corporate governance
See Secs. 6, 23, 24, 29, 73 and 177

Sec 23 to 29, Revised Corporation Code of the Philippines

Herbosa, et al. pp. 111 to 148
Sec 23 Election of directors or trustees
Valle Verde Country Club Inc. v Africa 598 SCRA 202 (2009)
Grace Christian high School v CA 281 SCRA 133 (1997)
Lydia Lao et al v Yao Bio Lim et al GR 201306 Aug 9, 2017
Mary Lim et al v Moldex Land Inc GR 206038 Jan 25, 2017
Sec 24 Corporate officers

Doctrine of apparent authority

People’s Aircargo v CA 297 SCRA 170 (1989)
Benjie B Georg v Holy Trinity College GR 19048 Jul 20, 2016
Engineering Geoscience Inc v Philippine Savings Bank GR 187262 Jan
10, 2019
Arturo Calubad v Ricaren Dev Corp GR202364 Aug 30, 2017
Terp Construction Corp v BF GR 221771 Sep 18, 2019
Corporate officers must be expressly mentioned in the bylaws
Velasco v Lopez 419 SCRA 422
Marc II Marketing v Joson 662 SCRA 35 (2011)
Matling Industrial and Commercial Corp v Coros Oct 13 2010
Cosare v Broadcom GR 201298 Feb 5, 2014
DBP v Sta Ines Melale GR 202364 Aug 30, 2017

Election and appointment

Mita Pardo de Tavera v Phil Tuberculosis Society Inc. 112 SCRA 243
(1982
Removal of a corporate officer for cause is a power to be exercised
by the Board
Nectarina Raniel v Paul Jochico GR 153413 Mar 1, 2007
Velarde v Lopez 419 SCRA 422 (2004)

Sec 25 Report of election of directors, trustees and officers, non-holding

of election and cessation from office
Premium Marble Resources v CA 264 SCRA 11 (1996)
Monfort Hermanos v Monfort III 434 SCRA 27 (2004)
Valle Verde Country Club Inc v Africa GR 151969 598 SCRA 202
Sec 26 Disqualification of directors, trustees or officers
Lee v CA 205 SCRA 752 (1992)
Gokongwei v SEC 89 SCRA 336 (1979)
See Sec 158 on disqualification as an administrative sanction
Sec 27 Removal of directors or trustees
Cinco v Bernas GR Nos 163356-57 Jul 1, 2015
Raniel v Jochico 517 SCRA 221 (2007)
See Sec 160
Sec 28 Vacancies in the office of director or trustee
Tan v Sycip 499 SCRA 216 (2006)
Sec 29 Compensation of directors or trustees
Western Institute of Technology, Inc. v Salas 278 SCRA 216 (1997)
See Sec 177 (last par)
Sec 30 to 33, Revised Corporation Code of the Philippines
Herbosa, et al. pp. 149 to 164
UCPB v Secretary of Justice et al GR 209601 Jan 12, 2021
Fiduciary duties of loyalty, diligence and care
Steinberg v Velasco 52 Phil 953 (1929)
Sec 30 Liability of directors, trustees or officers
Virata et al v Alejandro Ng Wee, Westmont Investment Corp., et al GR
220926, Mar 21, 2018 (read also same case decided earlier on Jul 5,
2017)
Pioneer Insurance Surety v Morning Star, GR 198436, Jul 8, 2015
Lanuza et al v BF Corporation et al GR 174938 Oct 1, 2014
Jaime Bilan Montealegre et al v Spouses De Vera GR 208920 Jul 10,
2019
Reahs Corporation, et al v NLRC et al, GR 117473 APR 15, 1997
Sec 31 Dealings of directors, trustees or officers with the coorporation
Mead v McCullough 21 Phil 95 (1911)
Prime White Cement v IAC 220 SCRA 103(1993)
Sec 32 Contracts between corporations with interlocking directors.
DBP v CA 363 SCRA 307 (2001)
California Manufacturing v Advanced Technology GR 202454 Apr 25,
2017
Sec 33 Disloyalty of a director
Doctrine of Corporate Opportunity
Erlinda Ponce v Valentino Legaspi and CA GR 79184 May 6, 1992
Prime White Cement Corporation v IAC GR L-68555 Mar 19, 1993
Gokongwei v SEC GR L-45911 Apr 11, 1979
Special facts doctrine
a corporate officer with superior knowledge gained by virtue of being an
insider owes a limited fiduciary duty to a shareholder in transactions
involving transfer of stock

TITLE IV POWERS OF CORPORATIONS

Sec 35 to 44, Revised Corporation Code of the Philippines
Sec 35 Corporate powers and capacity
Theory of General or Specific / Limited Capacity (express, implied or
incidental)
See Sec 46 of the Civil Code
Cagayan Valley Drug Corp v CIR 545 SCRA 10 (2008)
1. Sue and be sued
Umale, et al v ASB Realty Corporation GR 181126 Jun 15, 2011
Ago Realty et al v Dr Angelito F. Ago, GR 210906 Oct 16, 2019
2. Power of succession
3. Adopt a corporate seal
4. Amend articles
5. Adopt, repeal or amend by laws
6. Issue stocks to subscribers and sell treasury shares; to admit members
in a non-stock corporation
7. Exercise rights of ownership over properties for lawful business -
Firme v Bukal Enterprises and Dev Corp 414 SCRA 190 (2003);
Yasuma v Heirs of De Villa 499 SCRA 466 (2006)
8. Enter into merger or consolidation
9. Make donations (except foreign corporations in aid of any political
party or candidate or for purposes of partisan political activity)
10. Establish pension, retirement and other benefits for officers and
employees - Lopez v Fontecha 247 SCRA 183 (1995)
Pirovano v The De La Rama Steamship Co Gr L-5377 Dec 29, 1954
11. Others – inherent powers; incidental powers; implied or necessary
powers [e.g. issue checks - Atrium Management Corp v CA 353
SCRA 23 (2001)
12. Perform other acts pertinent to purchase of shares of another
corporation - Inter Asia Investments v CA 403 SCRA 452 (2003)]

B. Specific powers
Sec 36 Power to extend or shorten corporate term
Sec 37 Power to increase or decrease capital stock; incur, create or
increase bonded indebtedness -
Nestle Phil Inc v CA and SEC GR 86738 Nov 13, 1991
Ong Yong et al v David s. Tiu et al GR 144476 Apr 8, 2003
Salido Jr. v Aramaywan, supra
Sec 38 Power to deny preemptive right
Majority Stockholders of Ruby Industrial Corp. v Lim 650 SCRA 461
(2011)
Sec 39 Sale or other disposition of assets
Nell v Pacific Farms Inc, 15 SCRA 415 (1965)
Y-I Leisure Phils Inc. v Yu GR 207161 Sep 8 2015
Firme v Bukal Enterprises 414 SCRA 190
Yasuma v Heirs Of Cecilia De Villa 499 SCRA 466 (2006)
Sec 40 Power to acquire own shares
Boman Environmental Dev Corp v CA GR 77860 Nov 22, 1988
Turner v Lorenzo Shipping Corp 636 SCRA 12 (2010)
Salido Jr. v Awamaywan, supra
Sec 41 Power to invest corporate funds in another corporation or
business or for any other purpose
De La Rama v Ma-ao Sugar Central Co.Inc 27 SCRA 247 (1969)
Sec 42 Power to declare dividends
Lydia Lao, et al v Yao Bio Lim GR 201306 Aug 9, 2017J
Cynamid Phil v CA 322 SCRA 639 (2000)
Sec 43 Power to enter into management contract
C. Ultra vires
Sec 44 Ultra vires acts of corporations
University of Mindanao v BSP et al GR 194964 Jan 11, 2016
Montelibano v Bacolod Murcia Milling GR L-15092 May 18, 1962
Pirovano v The De La Rama Steamship Co Gr L-5377 Dec 29, 1954
Republic v Acoje Mining Gr L-18062 Feb 28, 1963
Atrium Management Co v CA GR 109491 Feb 28, 2001

TITLE V BYLAWS
Sec 45 to 47, Revised Corporation Code of the Philippines
Sec 45 Adoption of bylaws
Gokongwei Jr v SEC 89 SCRA 336, Apr 11, 1979
Loyola Grand Villas Homeowners v CA 276 SCRA 68
Grace Christian High School v CA 281 SCRA 68 (1997)
Fleishcher v Botica Nolasco 47 Phil 583
Sec 46 Contents of bylaws
Pena v CA 193 SCRA 717 (1991)
Sec 47 Amendment To Bylaws
Primo Co, Se. et al v The Philippine Canine Club Inc. GR 190112 Apr
22, 2015
Salafrancia v Philamlife (Pamplona) Village Homeowners 300 SCRA
469 (1998)

TITLE VI MEETINGS
Sec 48 to 58, Revised Corporation Code of the Philippines
A. Stockholders meetings
Sec 48 Kinds of meetings
Simny G. Guy as minority stockholder for and in behalf of Goodland
Company, Inc. v Gilbert G. Guy et al GR 184068 Apr 19, 2016
Price and Sulu Development v Martin 58 SCRA 707 (1933)
Sec 50 Place and time of meetings of stockholders or members
Sec 51 Quorum in meetings
Tan v Sycip 499 SCRA 216 (2006)
Carolina Que Villongco, et al v Cecilia Que Yabut, et al GR 225022 Feb
5, 2018
SEC MC 6 series of 2020
B. Board meetings
Sec 52 Regular and special meetings of directors or trustees
Sec 53 Who shall preside at meetings
Salido Jr v Aramaywan GR 233857 Mar 18, 2021
C. Right to vote
Sec 54 Right to vote of secured creditors and administrators
Mary Lim et al v MOLDEX Land Inc. GR 206038 Jan 25, 2017
Fua Cun v Summers 44 Phil 705 (1923)
Sec 55 Voting in case of joint ownership of stock
Sec 56 Voting right for treasury shares
GSIS v CA 585 SCRA 679 (2009)
Sec 57 Manner of voting; proxies
Cezar Yatco Real Estate Services Inc et al v Bel-Air Village Association,
Inc GR 211780 Nov 21, 2018
Sec 58 Voting trust
Lee v CA 205 SCRA 752, 758 (1992)
NIDC v Aquino 163 SCRA 153 (1988)

TITLE VII STOCKS AND STOCKHOLDERS

Sec 59 to 72, Revised Corporation Code of the Philippines
A. Rights of stockholders
Right to transfer/encumber/register
Tee Ling Kiat v Ayala Corp et al, GR 192530 Mar 7, 2018
Reyes v RTC and Zenith Ins Corp Aug 11, 2008
Chemphil Export v CA 151 SCRA 257 (1995)
Fua Cun v Summers 44 Phil 705 (1923)
Lim Tay v CA 293 SCRA 634
Right to vote – Republic v Cocofed 372 SCRA 462
Right to attend stockholders’ meeting – Price and Sulu Dev v Martin 58
Phil 797 (1933)
Propriety rights – right to dividends, rights to inspect, preemptive right,
appraisal right - Turner v Lorenzo Shipping 636 SCRA 13 (2010) (extend
or shorten corporate term; amend features of shares in articles;
disposition of corporate assets; investment in other business; merger or
consolidation)

B. Subcription and consideration for stocks

Sec 59 Subscription contract
1.Doctrine of indivisibility of subscription
2.All agreements pertaining to the purchase of unissued shares of stock
of a corporation, whether before or after incorporation, are subscription
agreements.
3. Deposit for future subscription
BIR v First Express Pawnshop Co 589 SCRA 253 (2009)
Sec 61 Pre-incorporation subscription
Ong Yon et al v Tiu et al GR 144476 Apr 8, 2003
Salido Jr v Aramaywan, supra
Sec 61 Consideration for stocks

C. Transfer of shares
Allowable restrictions on the sale of shares
Lambert v Fox 26 Phil 588 [1914]
JG Summit Holdings Inc v CA 450 SCRA 169 (2005)
Sec 62 Certificate of stock and transfer of shares
Neugene Marketing Inc v CA 303 SCRA 295 (1999)
Raquel-Santos v CA 592 SCRA 169 (2009)
Sec 63 Issuance of stock certificates
Bitong V CA 292 SCRA 503 (1998)
Nava v Peers Marketing 74 SCRA 65 (1976)
China Banking Corp v Ca 270 SCRA Mar 26, 1997
Sec 64 Liability of directors for watered stocks
Sec 65 Interest on unpaid subscriptions

D. Delinquent shares
Sec 66 Payment of balance of subscription
Sec 67 Delinquency
Sec 68 When sale may be questioned
Sec 69 Court action to recover unpaid subscription
Sec 70 Effect of delinquency
Sec 71 Rights of unpaid shares
Sec 72 Lost or destroyed certificates

Stockholder’s right to file derivative suit

SC Interim Rules of Procedure Governing Intra-Corporate Controversies
BPI v Bacalla Jr. et al GR 223404 July 15, 2020
Remedial rights – right to file an individual suit; representative suit or
derivative suit
SEC V Subic Bay Golf GR 179047 Mar 11, 2015
Belo Medical Group Inc v Jose L. Santos et al, GR 185894 Aug 30, 2017
BSP v Vicente Jose Campa et al GR 185979 Mar 16, 2016
Legaspi Towers v Muer 673 SCRA 453 (2012)
Juanito Ang v Spouses Ang GR 201675 Jun 19, 2013
Florete v Florete Sr. GR 174909 Jan 20, 2016
Villamor v Umale GR 172843 Sept 24, 2014
Gohan v Young 354 SCRA 207 (2001)
Stephen Y. Ku v RCBC Securities Inc. GR 219491 Oct 17, 2018
Nestor Ching et al v Subic Bay GR 174353 Sept 10, 2014 (derivative
suit vs individual suit v class suit)

TITLE VIII CORPORATE BOOKS AND RECORDS

Sec 73 to74, Revised Corporation Code of the Philippines
A. Corporate books
Sec 73 Books to be kept; stock transfer agent
See Sec 177
Ponce v Alsons Cement Corp 393 SCRA 602 (2002)
Lanuza v CA 454 SCRA 54 Mar 28, 2005
B. Right of inspection
Benito Keh et al v People GR 217592-93 July 13, 2020
Terelay Investment and Dev Corp v Cecilia Yulo GR 160924 Aug 5,
2015;
Dee Ping Wee v Lee Hiong Wee 629 SCRA 145 (2010))
Shirley T. Lim et al v People GR 226590 April 23, 2018
Sec 74 Right to financial statements
See Secs. 161, 162 and 163

TITLE IX MERGER AND CONSOLIDATION

BPI v BPI Employees Union et al GR 164301 Aug 10, 2010
Sec 75 to 79, Revised Corporation Code of the Philippines
Sec 75 Plan of merger or consolidation
See the Philippine Competition Act (RA 10667)
Assumption of obligations
Nell Co v Pacific 15 SCRA 415 (1965)
Y-1 Leisure Philippines v Yats Intel 770 SCRA 56 (2015)3.
SEC approval required
PNB v Andrada Electric & Engr Co GR 142936, Apr 17, 2002
Stock purchase or equity transfer v asset purchase v business enterprise
transfers v spin offs
San Miguel Corp Employees v Confessor 262 SCRA 81 (1996)
De facto merger
Bank of Commerce v RPN Inc GR 195615 Apr 21, 2014
Sec 76 Shareholders or members approval
Sec 77 Articles of merger or consolidation
Note the requirements that will enable SEC to determine fairness of
exchange of properties for shares
Sec 78 Effectivity of merger or consolidation
Bank of Commerce v RPN GR 195615 April 21, 2014
CIR v La Tondena Distillers GR 175188 Jul 15, 2015
PDIC v Edward Willkon, et al GR 178618 Oct 20, 2010;
Sec 79 Effects of merger or consolidation
Global Business Holdings v Surecompsoftware, BV 633 SCRA 94 (2010)
Phil Geothermal Inc. Employees Union v Unocal Phil GR 190187 Sep
28, 2016
PNB v Andrada Electric GR 142936 April 17, 2002

TITLE X APPRAISAL RIGHT

Sec 80 to 85, Revised Corporation Code of the Philippines
Sec 80 Instances of appraisal right
Cua Jr. v Tan GR 181455-56 Dec 4, 2009
Sec 81 How right is exercised
Turner et al v Lorenzo Shipping Corporation GR 157479 Nov 24, 2010
Sec 82 Effect of demand and termination of right
Sec 83 When right to payment ceases
Sec 84 Who bears cost of appraisal
Sec 87 Notation on certificate(s); right of transferee
No appraisal right to avail of derivative suit
Villamor v Umale GR 172843 Sep 24, 2014

TITLE XI NONSTOCK CORPORATION

Sec 86 Definition
CIR v Club Filipino 5 SCRA 321 (1962)
Calatagan Golf Club v Clemente Jr. 585 SCRA 300 (2009)
Sec 87 Purposes
Sec 88 Right to vote
Tan et al v Sycip et al GR 153468 Aug 17, 2006
Sec 89 Non-transferability of membership
Sec 90 Termination of membership
Valley Golf & Country Club Inc v Caram GR 165443 Apr 16, 2009
Sec 91 Election and term of trustees
Sec 92 Place of meetings
Sec 93 Rules for distribution
Sec 94 Plan of distribution of assets

TITLE XII CLOSE CORPORATIONS

Sec 95 to 104, Revised Corporation Code of the Philippines
Sec 95 Defnition and applicability of title
Ago Realty v Ago GR 210906 OCT 16, 2019
Manuel R Dulay v CA GR 91889 Aug 27, 1993
Torres v CA 278 SCRA 793 (1997)
Sec 96 Articles of incorporation
Bustos v Millan Shoe Inc. GR 185024 Apr 24, 2017
Sec 97 Validity of restrictions on transfer of shares
Sec 98 Effects of issuance or transfer of stock in breach of qualifying
conditions
Sec 99 Agreements by stockholders
Sec 100 When board meeting is unnecessary or improperly held
Sec 101 Preemptive right in close corporations
Sec 102 Amendment of articles of incorporation
Sec 103 Deadlocks
See Sec 181
Sec 104 Withdrawal of stockholder or dissolution of corporation

TITLE XIII SPECIAL CORPRORATIONS

SECS 105 to 132, Revised Corporation Code of the Philippines
A. Educational corporations
See Art XV, Sec 8(1) Phil Constitution
Sec 105 Incorporation
Barayuga v Adventist University 655 SCRA 640 (2011)
Angeles University Foundation v City of Angeles GR 189999 Jun 27,
2012
Sec 106 Board of trustees
C. Religious corporations
Sec 107 Classes of religious corporations
Sec 108 Corporation sole
Roman Catholic Bishop of Nueva Caceres v Mun of Tabaco Sep 29,
1924
Roman Catholic Apostolic Church v LRC 102 Phil 596 (1957)
Iglesia De Jesucristo Nueva of Manila v Dela Cruz GR 208284 Apr 23,
2018
Sec 109 Articles of incorporation
Sec 110 Submission of articles of incorporation
Sec 111 Acquisition and alienation of property
Sec 112 Filling of vacancies
Sec 113 Dissolution
Sec 114 Religious societies
See Art XV, Sec 15
Alfredo Long v Lydia Basa GR 134963-64 Sep 27, 2001
IEMELIF v Bishop Lazaro GR 184088, 624 SCRA 224,Jul 6, 2010
D. ONE PERSON CORPORATIONS (OPC)
Sec 115 Applicability of provisions to OPC
Sec 116 OPC
Sec 117 Minimum capital stock not required for the OPC
Sec 118 Articles of incorporation of the OPC
Sec 119 Bylaws of the OPC
Sec 120 Display of corporate name
Sec 121 Single stockholder as director, president
Sec 122 Treasurer, corporate secretary and other officers
Sec 123 Special functions of the corporate secretary
Sec 124 Nominee and alternate nominee
Sec 125 Term of nominee and alternate nominee
Sec 126 Change of nominee or alternate nominee
Sec 127 Minutes book
Sec 128 Records in lieu of meetings
Sec 129 Reportorial requirements
Sec 130 Liability of single stockholder
Sec 131 Conversion from an ordinary corporation to a one person
corporation
Sec 132 Conversion from a one person corporation to an ordinary stock
corporation

TITLE XIV DISSOLUTION

Sec 133 to 139
Clemente v CA Gr 82407 Mar 27, 1995
Spouses Yu v. Yukayguan, G.R. No. 177549, [June 18, 2009]
Dr Gil J. Rich v Guillermo Paloma III, et al, GR 210538 Mar 7, 2018
Chua v PP GR 216145 Aug 24, 2016
Majority Stockholders of Ruby Industrial Corp v Lim 650 SCRA 461
(2011)
Premiere Dev Bank v Flores et al GR 175339 Dec 16, 2008
Sierra Grande Realty Corp v. Hon. Ragasa et al GR 218543 Sep 2, 2020

TITLE XV FOREIGN CORPORATION

Sec 140 to 153, Revised Corporation Code of the Philippines
Sec 140 Definition and rights of foreign corporations
Nationality of corporations
Place of incorporation test
Control Test SEC Op No. 04-40 dtd Aug 10, 2004
Definition of a “Philippine National” FIA of 1991 RA 7042 as amended
by RA 8179 Sec 3 (a)
Foreign ownership restrictions
Grandfather rule v control test – Narra Nickel Mining and Dev Corp v
Redmont Consolidated Mines, Corp GR 195580 Jan 28, 2015
Voting control test v beneficial ownership test - SEC MC No. 8, Sec 2
Roy III v Herbosa, et al GR 207246, Nov 22, 2016
Where foreign ownership is not allowed or is limited by the Constitution
or law
Sec 141 application to existing foreign corporations
Sec 142 Application for a license
Definition of “doing business”
Magna Ready Mix Concrete Corp v Angersen Bjornstad Kane Jacobs
Inc. GR 196158 Jan 202021
Steel Case Inc v Design Intl Selections, Inc. GR 171995 Apr 18, 2012
CIR v Interpublic Group of Companies, Inc. GR 207039 Aug 14, 2019
Sec 143 Issuance of a license
Sec 144 Who may be a resident agent
Sec 145 Resident agent; service of process
Sec 146 Law applicable
Sec147 Amendments to articles of incorporation or bylaws of foreign
corporation
Sec 148 Amended license
Sec 149 Merger or consolidation involving a foreign corporation
licensed in the Philippines
Sec 150 Doing business without a license
Air Canada v CIR GR 169507 Jan 11, 2016
Talon Security Consulting and Trade Limited v DND, et al GR 195055
Aug 18, 2014
Tuna Processing v Phil Kingford GR 185582 Feb 29, 2012
Global Business Holdings Inc. v Surecomp Software BV GR 173453 Oct
13, 2010
Sec 151 Revocation of license
Sec 152 Issuance of certificate of revocation
Sec 153 Withdrawal of foreign corporations
Sec 134 Revocation of license
Sec 135 Issuance of certificate of revocation
Sec 136 Withdrawal of foreign corporation

TITLE XVI INVESTIGATIONS, OFFENSES AND PENALTIES

SECS 154 to 172, Revised Corporation Code of the Philippines
A. Background of this new title
Concept of corporate criminal liability
Umali v CA 189 SCRA 592 (1990)
Yujuico v Quiambao GR 180416 Jun 2, 2014

The old Sec 144

James Ient et al v Tullett Prebon (Phil) Inc GR 189158 Jan 11, 2017
please (read in conjunction with UCPB v Secretary of Justice et al,
supra)
SEC v G Cosmos Phil Inc. GR 167435 Apr 20, 2015
Baviera v Paglinawan GR 168380 Feb 8, 2007
B. New powers of the SEC
Sec 154 investigation and prosecution of offense
Sec 155 Administration of oaths, subpoena of witnesses and documents
Sec 156 Cease and desist orders
See counterpart SRC provisions on when SEC can issue a CDO
Take note of SEC power to initiate criminal complaints under the SRC
and now under the Code
GSIS v CA GR 183905 Apr 16, 2009
Sec 157 Contempt
Sec 158 Administrative sanctions
UCPB v Secreetary of Justice et al GR 209601 Jan 12, 2021
C. Specific offenses
Sec 159 Unauthorized use of corporate name; Penalties
Sec 160 Violation of disqualification provision; Penalties
Sec 161 Violation of duty to maintain records, to allow their inspection
or reproduction ; Penalties
Sec 162 Willful certification of incomplete, inaccurate, false or
misleading statements or reports ; Penalties
Sec 163 Independent auditor collusion ; Penalties
Sec 164 Obtaining corporate registration through fraud ; Penalties
Sec 165 Fraudulent conduct of business; Penalties
Virata v Ng Wee GR 220926 etc Jul 5, 2017
Phil Banking Corp v Dy GR 183774 Nov 14, 2012
SEC v Interport GR 135808 Oct 6, 2008
Maricalum Mining Corp v Florentino GR 221813 Jul 23, 2018
Sec 166 Acting as intermediaries for graft and corrupt practices;
Penalties
Take note that the corporation’s failure to install:
(a) safeguards for the transparent and lawful delivery of services
and
(b) policies, code of ethics and procedures against graft and
corruption shall be prima facie evidence of corporate liability
Sec 167 Engaging intermediaries for graft and corrupt practices;
Penalties
Sec168 Tolerating graft and corrupt practices; Penalties
SEC 169 Retaliation against whistleblowers
Sec 170 Other violations of the code; separate liability
UCPB v Secretary of Justice et al, supra
Sec 171 Liability of directors, trustees, officers or other employees.
Sec 172 Liability of aiders and abettors and other secondary liability.

TITLE XVII MISCELLANEOUS PROVISIONS

Sec 173 to 188, Revised Corporation Code of the Philippines
Sec 173 Outstanding capital stock defined
Gamboa et al v Teves et al, supra
Roy III v Herbosa et al
Sec 174 Designation of governing boards
Sec 175 Collection and use of registration, incorporation and other fees
See Sec. xx of the SRC
Sec 176 Stock ownership in certain corporations
Sec 177 Reportorial requirements of corporations
Sec 178 Visitorial power and confidential nature of examination results
See Sec 179 (i)
Sec 179 Powers, functions and jurisdiction of the commission
Note cross-references to CDOs (Sec 156); direct and indirect contempt
(Sec 157); dissolve or impose sanction on corporations, upon final court
order for committing securities violations, smuggling, tax evasion,
money laundering, graft and corrupt practices or other fraudulent or
illegal acts (Sec 138 [e])
First Philippine Holdings v SEC GR 206673 July 28, 2020
Sec 180 Development and implementation of electronic filing and
monitoring system
Sec 181 Arbitration for corporations
Lanuza Jr. et al v BF Corp et al GR 174938 Oct 1, 2014
See sec 13
Sec 182 Jurisdiction over party list organizations
Sec 183 Applicability of the code
Sec 184 Effect of amendment or repeal of this code, or the dissolution of
a corporation
Sec 185 Applicability to existing corporations
Sec 186 Separability clause
Sec 187 Repealing clause