CORPORATION LAW

Notre Dame University

Jamairah A. Nagamora, JD-ILP

1. Definition of Corporation
-Monfort Hermanos v. Monfort III. G.R. No. 152542 & 155472, July 8, 2004
(Attributes of a Corporation)
2. Classes of Corporation
-Sawadjaan v. CA, G.R. no. 141735, June 8, 2005 (Collateral Inquiry of a
De Facto Corporation)
-Seventh Day Adventist v. Northeastern Mindanao Mission
Missionary , G.R. No. July 21, 2006 (De Facto Corporation)
-Missionary Sisters of Our Lady of Fatima v. Alzona, G.R. No. 2243017,
August 16, 2018 (Corporation by Estoppel)
3. Nationality of Corporation
a. Control Test
b. Grandfather Rule
-Narra Nickel Mining v. Redmont Consolidated Mines, G.R. No. 195580,
April 21, 2014
-Gamboa v. Teves, G.R. No. 176579, June 28, 2011
-Heirs of Gamboa v. Teves, G.R. No. 176579, October 9, 2012
-Roy III v. Herbosa, G.R. No. 207245, April 18, 2017
4. Corporate Juridical Entity
a. Doctrine of Separate Juridical Personality
b. Doctrine of Piercing the Corporate Veil
-Halley v. Printwell, Inc. G.R. 157539, May 30, 2011 (Non-application of
Principle of Limited Liability to Due Unpaid Subscription)
--Kukan International Corporation v. Reyes, September 29, 2010 (Piercing
the Corporate Veil to Acquire Jurisdiction)
-Heirs of Tan Uy v. International Exchange Bank (Liability of
Directors/Officers)
-DBP v. Hydro Resources Contractors Corporation, G.R. No. 167603,
March 13, 2013 (Alter Ego/Instrumentality Theory)
-Francisco Motors Corp v. CA, G.R. No. 100812, (Reverse Corporate
Piercing)
-International Academy of Management and Economics v. Litton, G.R. No.
191525, December 13, 2017 (Outside Reverse Veil-Piercing)
-Gesolgon v. CyberOne, G.R. No. 210741, October 14, 2020, Hernando J.
5. Capital Structure
a. Number and Qualification of Incorporators
b. Subscription Requirements
c. Corporate term
d. Classification of Shares

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6. Incorporation and Organization
a. Promoter
i. Liability of Promoter
ii. Libaility of Corporation for Promoter’s Contracts
b. Subscription Contract
-Ong Yong v. Tiu, G.R. Nos. 1444746 & 144629, April 8, 2003.
c. Pre-Incorporation Subscription Agreements
d. Consideration for Stocks
e. Articles of Incorporation
i. Contents
ii. None-Amendable Items
f. Corporate Name and Limitations on its Use
g. Registration, Incorporation, and Commencement of Corporate Existence
h. Election of Directors or Trustees
i. Adoption of By-Laws
i. Contents of By-Laws
ii. Binding Effects
iii. Amendments
j. Effects of Non-Use of Corporate Charter

7. CORPORATE POWERS
a. General Powers; Theory of General Capacity
-Republic v. Acoje Mining Company, Inc., G.R. No. L-18062, February 28,
1963
-Teresa Electric Power Co., v. Public Service Commission and Filipinas
Cement Corporation, G.R. No. L-21804, September 25, 1967
b. Specific Powers; Theory of Specific Capacity
c. Power to Extend or Shorten Corporate Term
d. Power to Increase or Decrease Capital Stock or Incur, Create, Increase
Bonded Indebtedness
-Metroplex Berhad v. Sinophil Corporation, G.R. No. 2082821, June 28,
2021, Hernando J.
e. Power to Deny Pre-Emptive Rights
-Majority Stockholders of Ruby Industrial Corporation v. Miguel Lim, G.R.
No. 165887, June 6, 2011.
f. Power to Sell or Dispose of Corporate Assets
-Y-I Leisure Phil., Inc. v. Yu, G.R. No. 207161, September 8, 2015.
g. Power to Acquire Own Shares
h. Power to Invest Corporate Funds in Another Corporation Business
i. Power to Declare Dividends
j. Power to Enter into Management Contract
k. Doctrine of Individuality of Subscription
l. Doctrine of Equality of Shares
m. Ultra Vires Doctrine

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 -University of Mindanao,Inc. v. BSP, G.R. No. 194964-65, January 11,
2016.
n. Trust Fund Doctrine

8. Stockholders and Members

a. Fundamental Rights of a Stockholder
- F&S Velasco., Inc. v. Madrid, G.R. No. 208844, November
10, 2015
- Teng v. Securities and Exchange Commission, G.R. No.
184332, February 17, 2016
b. Participation in Management
i. Proxy
ii. Voting Trust
iii. Cases When Stockholders’ Action is Required
iv. Manner of Voting
c. Proprietary Rights
i. Rights to Dividends
ii. Appraisal Right
iii. Right to Inspect
- Terelay Investment and Development Corp. v. Yulo, G.R.
N0. 160924, August 4, 2015
- Yujuico v. Quiambao, G.R. No. 180416, June 2, 2014
iv. Preemptive Right
v. Right to Vote
vi. Right to Dividends
d. Remedial Rights
i. Individual Suit
ii. Representative Suit
iii. Derivative Suit
- Ago Realty & Development Corp. v. Ago, G.R. Nos. 210906
& 211203, October 16, 2019
- Ching v. Subic Bay Gold and Country Club, Inc., G.R. No.
174353, September 10, 2014
e. Obligations of a Stockholder
f. Meetings
- Bernas v. Cinco, G.R. Nos. 163356-57 & 163368-69, July 1,
2015.
- Guy v. Guy, G.R. No. 184068, April 19, 2016