LESSON 1 - BUSINESS ORGANIZATION II – REVISED CORPORATION CODE

& RELATED LAWS

I. Brief History of Philippine Corporate Law

Act No. 1459, Corporation Law (April 1, 1906)

Batas Pambansa Blg. 68, Corporation Code of the Philippines (May 1, 1980)

Republic Act No. 11232, The Revised Corporation Code of the Philippines (RCC) (February
20, 2019)

See Ago Realty & Development Corp., et. Al. vs. Dr. Angelita Ago, et. Al.
G.R. No. 210906, October 16, 2019

II. Nature, Attributes and Classifications of Corporations

A. Definition of a Corporation; Theories on the Formation of Corporation

a. Statutory Definition, Section 2, RCC.

1. Philippine National Bank v. Hydro Resources Contractors Corp., G.R. Nos. 167530,
167561 & 167603, [March 13, 2013], 706 PHIL 297-319

b. Theories in the formation of a Corporation

b.1. Theory of Concession/Fiat Theory/Government Paternity Theory -

1. Tayag vs. Benguet Consolidated, Inc., 26 SCRA 242

2. Care Best International, Inc. vs. SEC, G.R. No. 215510

b.2. Theory of Enterprise Entity

1. Philippine Stock Exchange, Inc. Vs. Court of Appeals,

281 SCRA 232

B. Attributes of the Corporation

a. Artificial Being

1. PNB vs. Andrada Electric & Engineering Co., 381 SCRA 244
 2. International Express Travel & Tour Services, Inc. Vs. Court
Of Appeals, 343 SCRA 674

b. Creature of Law

c. Right of Succession

1. SME Bank, Inc. Vs. De Guzman, G.R. Nos. 184517 and G.R. No. 186641, October
8, 2013

c. Creature with Enumerated Powers, Attributes and Properties

1. Monfort Hermanos Agricultural Dev. Corp. Vs. Monfort, III,

434 SCRA 27
2. University of Mindanao vs. Bangko Sentral ng Pilipinas,
G.R. No. 194964-65, January 11, 2016;
3. Spouses Nolasco Fernandez vs. Smart Communications, Inc.
G.R. No. 212885, July 17, 2019