CORP.

LAW (2019)– OUTLINE 1

(Prof. M.I.P. Romero)

I. INTRODUCTION -- History (Roman, Medieval, England, USA, PH)

II. DEFINITION / ATTRIBUTES OF A CORPORATION

A. Artificial Being - Sec. 2, Revised Corp. Code of the Phil. (RCCP);

Art. 44 (3), New Civil Code (NCC)

a) Commencement of juridical personality (JP) for:

1. Corporations – a) if created by special law/charter

b) if registered w/ SEC
c) if a corporation sole - 110 RCCP

2. Partnerships – a) if registered w/ SEC

b) if not registered w/ SEC
Note: Relate Art. 1784 to Arts. 1772 and 1768 of NCC

3. Associations – Art. III, Sec 8, Constitution

4. Sole proprietorship
Mangila v. CA (GR 125027; 8/12/ 02)
Excellent Quality Apparel v. Win Multiple Rich Builders
578 SCRA 272 (2009)

b) Rights of a juridical person

Art. 46, NCC
Art. III, Secs.1 and 2, Constitution
Bache & Co. (Phils.), Inc. v. Ruiz (37 SCRA 823; 1971)
Bataan Shipyard v. PCGG (150 SCRA 181; 1987)
Art. III, Sec. 11, Constitution
Good Shepherd Foundation, Inc. (A.M. No. 09-6-9 SC; 8/19/09)

c) Criminal Liability of a Corporation

Sec. 171 (RCCP)
See Penal Provisions (only) of:
Anti-money Laundering Act (Sec. 14)
 Trust Receipts Law (Sec. 13, PD 115, in relation to estafa
under Art. 315 , RPC)
Ching v. Sec. of Justice 481 SCRA 609 (2006)
Tupaz IV v. CA 475 SCRA 398 (2005)

d) Liability for Torts / Negligence

PNB v. CA 83 SCRA 238 (1978)
Secosa v. Heirs of Francisco 433 SCRA 273(2004)
Professional Services, Inc. v. CA 611 SCRA 282(2010)
Calatagan Golf Club v. Clemente April 16, 2009

e) Entitlement to Moral Damages

ABS-CBN Corp. V. CA (361 Phil. 499; 1999)
Jardine Davies v. CA (GR 128066; 6/19/2000)
Crystal, et. al v. BPI (GR 172428; Nov. 2008)
Filipinas Broadcasting Network v. AMEC-BCCM
(GR 141994, Jan. 17, 2005)
Note: Mere obiter dictum ---
Mambulao Lumber v. PNB; 130 Phil. 366 (1968)
Pp. v. Manero, Jr.; GR 86883-85, (1993)

B. Created by Operation of Law – Art. XII, Sec. 16, Constitution

1. Private corporations
- Distinguish from public corporations
- Distinguish from quasi-public corporations
- Art.44 (1) and (2), NCC
- Special types of corporations - close corp., educational,
religious, ecclesiastical, lay, eleemosynary, civil, holding corp., parent,
subsidiary, affiliate, stock, non-stock, aggregate, corp. sole, de jure, de
facto, by estoppel.

2. GOCCs - distinguish from Govt. instrumentalities

– Give examples of GOCCs and Gis
Mla. Int’l Airport Authority v. CA (GR 155650; 7/20/ 2006)
Boy Scouts of the Phil. v. COA (GR 177131; 6/7/2011)

3. Corp. by prescription --- define

C. Right of Succession –
 1. Rationale
2. Compare with:
- partnership (delectus personae)
- sole proprietorship
3. Secs. 124 – 126, RCCP on One Person Corporations

D. Express/Implied/Incidental Powers - Distinguish and Give Examples

Alternatively --- General (Sec. 35) and Specific powers (Sec. 36- 43)
Intra vires and ultra vires acts of a corporation – Sec. 44
- Distinguish from illegal acts
- Distinguish from ultra vires acts of the board or officers
To be discussed more fully and w/ cases in subsequent Outline

III. COMPARISONS/DISTINCTIONS --- Corporations/Partnerships

Sole proprietorships