Syllabus Atty. Ma.

Chona Caacbay
Corporation and Basic Securities Law 1st Semester, AY 2024-2025

PART 1
REVISED CORPORATION CODE

I. INTRODUCTION

1. General

2. Kinds of Business Organization

● Sole Proprietorship

Mangila vs Court of Appeals (GR No 124027, 12 August 2002)

● Partnership

Mendiola vs Court of Appeals (497 SCRA 346)

JM Tuason & Co., Inc. vs Bolanos (95 Phil 106)

● Joint Venture

Aurback vs. Sanitary Wares Manufacturing Corporation (189 SCRA 130)

● Corporation

3. Historical Background

II. DEFINITION & ATTRIBUTES

LBC Express vs. CA (236 SCRA 602)

Filipinas Broadcasting vs. Ago Medical Center (GR No. 141954, January 17, 2005)
Ong vs. Court of Appeals (GR No. 119858, 29 April 2003)
Heirs of Antonio Pael vs Court of Appeals (GR No .133547, 7 December 2001)

1. Advantages/disadvantages of the corporate form of business

2. Distinctions between a corporation and partnership

3. Government powers

4. Nationality of Corporations

Control Test vs. Grandfather Rule

Gamboa vs Teves (GR No. 176579 28 June 2011; 9 October 2012)

SEC Memorandum Circular No. 8, Series of 2013

Guidelines on the Compliance with the Filipino-Foreign Ownership
Requirements Prescribed in the Constitution and/or Existing Laws by
Corporations Engaged in Nationalized and Partly Nationalized Activities

Narra Nickel Mining vs Redmont Mines

(722 SCRA April 21, 2014; MR January 28, 2015 re majority decision)

Roy III vs Herbosa (GR No 207246, 11 November 2016; 18 April 2017)

III. CLASSIFICATION OF CORPORATIONS

1. Stock vs. Non-Stock

Collector vs. Club Filipino de Cebu (5 SCRA 312)

2. Created by special law

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Syllabus Atty. Ma. Chona Caacbay
Corporation and Basic Securities Law 1st Semester, AY 2024-2025

PNOC-EDC vs. NLRC (201 SCRA 487)

Hacienda Luisita, Incorporated vs PARC (GR No. 171101, July 5, 2011)
Tuna Processing, Inc. vs. Phil. Kingford Inc. (GR No. 185582, February 29, 2012)
Litonjua, Jr. vs. Eternit Corporation (490 SCRA 204)
Phil. National Construction Corporation vs Pabion
(GR No. 131715, December 8, 1999)
Republic vs. Paranaque (GR No. 191109, July 18, 2012)
Manila International Airport Authority vs. CA (GR No. 155650, July 20, 2006)
Republic vs Heirs of Bernabe (GR No. 237663, 6 October 2020)
Bases Conversion and Development Authority vs CIR (GR No. 205925, 20 June 2018)

3. Public vs. Private

National Coal Corp. vs. CIR (146 SCRA 583)

4. Ecclesiastical & Lay

5. Aggregate & Sole

6. Close & Open

7. Domestic & Foreign

8. Parent/Holding, Subsidiaries & Affiliates

Maricalum Mining Corporation vs Ely Florentino (FR. No 221813, 23 July 2018)

9. Public & Private

10. Quasi-Public

11. De jure vs. De facto (refer to item IV.5.a below)

12. Corporations by Estoppel (refer to item IV.5.b below)

IV. FORMATION & ORGANIZATION

1. Process of Incorporation

2. Contents of the Articles of Incorporation

Forest Hills Golf and Country Club, Inc. vs Gardpro, Inc. (GR No. 164686, 22 October 2014)

a. Prefatory Paragraph

b. Corporate Name

Red Line Transport vs. Rural Transit (60 Phil 549)

Universal Mills vs. Universal Textile Mills (78 SCRA 62)
Lyceum of the Philippines vs. CA (219 SCRA 610)
Philipps Export B.V. vs. CA (206 SCRA 457)
Indian Chamber of Commerce Phils., Inc. vs Filipino Indian Chamber of
Commerce in the Philippines, Inc. (GR No. 184008, 3 August 2016)

SEC Memorandum Circular No. 14, Series of 2017

Consolidated Guidelines and Procedures on the Use of Corporate and Partnership
Names

SEC Memorandum Circular No. 9, Series of 2018

Amendment of the Guidelines and Procedures on the Use of Corporate and
Partnership Names

SEC Memorandum Circular No. 13 Series of 2019

Amended Guidelines and Procedures on the Use of Corporate and Partnership
Names

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Syllabus Atty. Ma. Chona Caacbay
Corporation and Basic Securities Law 1st Semester, AY 2024-2025

c. Purpose Clause

Heirs of Antonio Pael vs Court of Appeals (GR No 133547, 7 December 2001)

Gala vs Ellice Agro-Industrial Corporation (GR No. 156819, 11 December 2003)

e. Principal Office Address

Clavecilla Radio Systems vs. Antillon (19 SCRA 379)

SEC Memorandum Circular No. 6, Series of 2016

Omnibus Guidelines on Principal Office Address; Address of each Incorporator,
Director, Trustee or Partner

f. Term of Existence

SEC Memorandum Circular No. 22, Series of 2020

Guidelines on Corporate Term

SEC Memorandum Circular No. 23, Series of 2019

Guidelines on the Revival of Expired Corporations

SEC Memorandum Circular No. 21, Series of 2014

Guidelines Governing the Computation of Corporate Term

Comm of Internal Revenue vs. Primetown Property Group, Inc. (GR No. 184823,
6 October 2010)

g. Incorporators

SEC Memorandum Circular No. 16 Series of 2019

Guidelines on the Number and Qualifications of Incorporators Under the Revised
Corporation Code

h. Directors/Trustees

i. Capitalization

Enano-Bote, et.al. vs Alvarez (G.R. No. 223572, 10 November 2022)

Salido vs. Aramaywan Metals Development Corporation, et. al.,
(GR No. 233857, 18 March 2001)

i. Shares of stock and classification

ii. Purpose of the classification

● Common vs. Preferred Shares

Republic Planters Bank vs Agana Sr. (GR No. 51765, 8 March 1997)

● Par vs. No-par Shares

● Voting vs. Non-voting Shares

● Founders' Shares

● Redeemable Shares

● Treasury Shares

Commissioner vs. Manning (66 SCRA 14)

Salido, Jr. vs Aramaywan Metals (GR No. 233857, 18 March 2021)

iii. Capital requirements

Article 225 Family Code of the Philippines

Heirs of Gamboa vs. Teves (GR No. 176579, October 9, 2012)

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Syllabus Atty. Ma. Chona Caacbay
Corporation and Basic Securities Law 1st Semester, AY 2024-2025

Narra Mining vs. Redmont Mining (21 April 2014; 28 January 2015)
Roy vs Herbosa (GR No .207, 22 November 2016 and 18 April 2017)

iv. Restrictions and Preferences

Executive Order No. 175

12th Foreign Investment Negative List

SEC Memorandum Circular No. 8, Series of 2013

Guidelines on Compliance with the Foreign-Filipino Ownership
Requirements Prescribed in the Constitution and/or Existing Laws by
Corporations Engaged in Nationalized and Partly-Nationalized Activities.

j. Other Matters Consistent with Law

k. Arbitration Agreement

l. No-transfer Clause

m. Treasurer-in-Trust

n. Undertaking to Change Name

SEC Memorandum Circular No. 8, Series of 2012

Re Amendment of Corporate and Partnership Names

o. Acknowledgment

3. Grounds for Disapproval

4. Commencement of Corporate Existence

Cagayan Fishing vs. Sandiko (65 Phil 233)

Missionary Sisters of Our Lady of Fatima vs Alzona et. al.
(GR No. 224307, 6 August 2018)

5. Defectively-formed corporations

a. De facto corporations (vs De Jure corporations)

Municipality of Malabang vs. Benito (27 SCRA 452)

Hall vs. Piccio (86 Phil 603)
Feliciano vs COA (GR No. 147402, 14 January 2004)
Missionary Sisters of Our Lady of Fatima vs Alzona
(GR No. 224307, 6 August 2018)

b. Corporation by Estoppel

Lozano vs. Delos Santos (274 SCRA 452)

Albert vs. University Publishing (13 SCRA 84)
Salvattierra vs. Garlitos (103 Phil 757)
Chiang Kai Shiek vs. CA (172 SCRA 389)
Asia Banking Corp. vs. Standard Products (46 Phil 144)
International Express Travel vs. CA (343 SCRA 674)
Greorg Grotjahn vs. Isnani (235 SCRA 216)
Pioneer Insurance and Surety Corporation vs CA (GR No 84197, 298 July 1989)
Lim Tong vs Philippine Fishing Gear Industries (GR No. 136448, 3 November 1999)
Macasaet vs. Francisco (GR No. 156759, 5 June 2013)
People vs Garcia (GR No. 117010, 18 April 1997)

6. Organization and Commencement of Business

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Syllabus Atty. Ma. Chona Caacbay
Corporation and Basic Securities Law 1st Semester, AY 2024-2025

a. Corporate organization

b. Commencement of Business Transaction

V. CORPORATE CHARTER AND ITS AMENDMENTS

1. The Corporate Charter

a. Corporate Entity Theory

Sulo ng Bayan vs. Araneta (72 SCRA 347)

Caram vs. CA (151 SCRA 372)
Rustan Pulp and Paper Mills vs. CA (214 SCRA 665)
Cruz vs. Dalisay (152 SCRA 482)
Palay Inc. vs. Clave (124 SCRA 638)
Soriano vs. CA (174 SCRA 195)

2. Piercing the Veil of Corporate Fiction

a. General Concept

Spouses Pedro and Florencia Violago vs BA Finance Corporation and Avelino Violago
(GR No. 158262, 21 July 2008)
International Academy of Management ad Economics (I/AME) vs. Litton and Co., Inc.
(848 SCRA 437)
Palacio vs. Fely Transportation Co. (5 SCRA 1011)
Marvel Bldg. vs. David (94 SCRA 376)
Yutivo and Sons vs. CTA (1 SCRA 160)
Commissioner vs. Norton & Harrison (11 SCRA 714)
La Campana Coffee vs. Kaisahan ng Manggagawa (93 Phil 160)
Emilio Cano vs. CIR (13 SCRA 290)
Telephone Engineering vs. WCC (104 SCRA 354)
Claparols vs. CIR (65 SCRA 613)
Nat'l Federation vs. Ople (143 SCRA 124)
A.C. Ransom vs. CA (150 SCRA 498)
Concept Builders vs. NLRC (257 SCRA 149)
Mc Connel vs. CA (1 SCRA 722)
Tan Boon Bee vs. Jarencio (163 SCRA 205)
Cease vs. CA (93 SCRA 483)
Wensha Spa Center, Inc. vs. Yung. (GR No. 185122, August 10, 2010)
General Credit Corp. vs. Alsons Development, et. al. (GR 154975, January 29, 2007)

b. When not justified

Remo, Jr. vs. IAC (172 SCRA 405)

Del Rosario vs. NLRC (187 SCRA 777)
Indophil Textile Mills vs. Galica (205 SCRA 697)
PNB vs. Ritratto Group (362 SCRA 216)
Pacific Rehaus Corp. vs. CA (719 SCRA 665)
Yu vs. NLRC (245 SCRA 134)
Francisco Motors Corporation vs. Court of Appeals (GR. No. 100812, June 25, 1999)
Pioneer Insurance vs. Morning Star Travel and Tours, Inc. (GR No. 198436, 8 July 2015)

3. Amendment of Corporate Charter

4. Special Amendments

5. Provisions subject to amendments

a. Change in Corporate Name

Phil. First Insurance vs. Hartigan (74 SCRA 2520)

Relevant SEC Memorandum Circulars

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Syllabus Atty. Ma. Chona Caacbay
Corporation and Basic Securities Law 1st Semester, AY 2024-2025

b. Corporate Term

Alhambra Cigar vs. SEC (24 SCRA 269)

CRMD and SEC vs. Ching Bee Trading Corporation (GR No 205291)

SEC Memorandum Circular No. 23, Series of 2019

Guidelines on the Revival of Expired Corporations

VI. BOARD OF DIRECTORS / TRUSTEES

1. Powers of the Board

a. Classification of Powers

Ramirez vs. Orientalist (38 Phil 634)

Barreto vs. La Previsora (57 Phil 649)
TERP Construction Corporation vs Banco Filipino Savings and Mortgage Bank
(GR No. 221771, 18 Sept. 2019)

b. Qualifications and Disqualifications

SEC Memorandum Circular No. 4, Series of 2022

Disqualifications of Directors, Trustees and Officers of Corporations; Guidelines
on the Procedure for their Removal

Lee vs. CA (205 SCRA 572)

Detective and Protective Bureau vs. Cloribel (26 SCRA 256)
Grace Christian High School vs CA (281 SCRA 133)
Tan vs Sycip (499 SCRA 216)

2. Election and Voting

3. Other Corporate Officers

4. Validity and Binding Effects of Actions of Corporate Officers

Yao Ka Sin Trading vs CA (209 SCRA 763)

Lopez Realty vs. Fontecha (247 SCRA 183)
Pua Casim vs. Neumark (46 Phil 242)
Yu Chuck vs. Kong Li Po (46 Phil 208)
Francisco vs. GSIS (7 SCRA 557)
Board of Liquidators vs. Kalaw (20 SCRA 987)
Buenaseda vs. Bowen & Co. (110 Phil 464)
Philippine Heart Center vs Local Govt of Quezon City
(GR No. 225409, 11 March 2020)
Calubad vs Ricarcen Development Corporation (GR No. 202364, 30 August 2017)
TERP Construction Corporation vs Banco Filipino Savings and Mortgage Bank
(GR No. 221771, 18 September 2019)
People’s Aircargo and Warehousing Company vs Court of Appeals
(GR No 117847, 7 October 1998)
Citibank, NA vs Hon Segundino Chua et. al. (GR No. 102300, 17 March 1993)

5. Removal and Filling up of vacancies

Valle Verde Country Club vs. Africa (598 SCRA 201, September 2009)
Raniel vs Jochico (GR No. 153413, 1 March 2007)

6. Compensation of Directors

Central Cooperative Exchange vs. Tibe (33 SCRA 593)

Western Inst. of Tech. vs. Salas (278 SCRA 216)
Gov't vs. El Hogar Filipino (50 Phil 399)

7. Liability Corporate Officers

Tramat Mercantile vs. CA (238 SCRA 214)

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Syllabus Atty. Ma. Chona Caacbay
Corporation and Basic Securities Law 1st Semester, AY 2024-2025

Llamado vs. CA (270 SCRA 423)

Uichico vs. NLRC (273 SCRA 35)
Philippine Heart Center vs LGU of Quezon City (GR No. 225409, 11 March 2020)
People vs Garcia (GR No .117010, 18 April 1997)
UCPB vs. Secretary of Justice, et. al. (GR No. 209601, 12 January 2021)

8. Three-fold Duty of Directors

Montelibano vs. Bacolod Murcia Milling (5 SCRA 36)

Strong vs. Repide (41 Phil 947)
IENT vs Tullet Prebon (GR No. 189158, 11 January 2017)

9. Self-Dealing Directors

Prime White Cement vs. IAC (220 SCRA 1030)

Mead vs. Mc Cullough (21 Phil 95)

SEC Memorandum Circular No. 10, Series of 2019

Rules on Material Related Party Transactions for Publicly-Listed Companies

10. Interlocking Directors

11. Derivative Suit

Pascual vs. Orozco (19 Phil 83)

Everette vs. Asia Banking (49 Phil 512)
Republic Bank vs. Cuaderno (19 SCRA 671)
Western Institute of Tech. vs. Salas (supra)
San Miguel Corp. vs. Khan (176 SCRA 447)
Chase vs. Buencamino (136 SCRA 365)
Reyes vs. Tan (3 SCRA 198)
Gamboa vs. Victorino (90 SCRA 40)
Evangelista vs. Santos (86 Phil 387)
Villamor vs Umale (GR No. 172843, 24 September 2014)
Conmart (Phils) Inc et. al vs SEC (GR No. 85318, 3 June 1991)
Yu et.al. vs. Yukayguan, et. al. (GR No. 17759, 18 January 2009)

12. Executive Committee, Management Committee and other Committees

VII. CORPORATE POWERS AND AUTHORITY

1. Classifications of Corporate Power

a. Power to sue and be sued

Delta Motors vs. Mangosing (70 SCRA 77)

E.B. Villarosa & Partner Co. vs. Benito (GR 14926, August 6, 1999)

b. Power to have perpetual existence

c. Power of Succession

d. Power to Adopt and Use a Common Seal

e. Power to Amend the Articles of Incorporation

f. Power to Adopt By-Laws

g. Power to Sell / Issue Stocks or Admit Members

h. Power to Acquire / Alienate Property

Luneta Motors Co. vs. A.D. Santos Inc. (5 SCRA 809)

Gov't. vs. El Hogar Filipino (supra)
Director of Lands vs. CA (158 SCRA 568)

i. Power to enter into partnership, joint venture, merger, consolidation or other commercial
agreement

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Syllabus Atty. Ma. Chona Caacbay
Corporation and Basic Securities Law 1st Semester, AY 2024-2025

j. Power to make Donations

k. Power to establish Pension, Retirement and other Plans

Republic vs. Acoje Mining Co. (7 SCRA 361)

l. Implied Powers

Teresa Electric vs. PSC (21 SCRA 199)

National Power Corporation vs. Vera (170 SCRA 721)
Powers vs. Marshall (161 SCRA 176)

m. Power to Extend / Shorten Corporate Term

n. Power to Increase / Decrease the Authorized Capital Stock; Incur / Create Bonded
Indebtedness

Philtrust vs. Rivera (44 Phil 469)

Madrigal & Co. vs. Zamora (151 SCRA 3550)

o. Power to Deny Pre-emptive Rights

Benito vs. SEC (123 SCRA 722)

SEC OGC Opinion No. 11-41, 5 October 2011

The Philippine Stock Exchange Inc.

SEC OGC Opinion dated 10 March 2000

Radio Philippines Network Inc. (RPN)

SEC OGC Opinion dated 30 September 1992

Industrial Security Consultancy and Management Inc.

p. Power to Sell / Dispose of Assets

Islamic Directorate of the Phils. vs. CA (272 SCRA 454)

Edward Nell & Co. vs. Pacific Farms (15 SCRA 415)
[now known as the NELL DOCTRINE as held in Y1 Leisure vs CA]

SEC Memorandum Circular No. 12, Series of 2020

Shareholder’s Approval on Sale of Corporate Assets

p. Power to Acquire Own Shares

Steinberg vs. Velasco

q. Power to Invest Funds

De la Rama vs. Ma-ao Sugar Central (7 SCRA 247)

John Gokongwei vs. SEC (89 SCRA 336)

r. Power to Declare Dividends

i. Types

ii. When and to whom it is vested

Nielson & Co. vs. Lepanto Consolidated Mining (26 SCRA 540)
Madrigal & Company, Inc. vs Zamora (GR No. L-48237, 30 June 1987)

s. Power to Enter into Management Contracts

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Syllabus Atty. Ma. Chona Caacbay
Corporation and Basic Securities Law 1st Semester, AY 2024-2025

2. Ultra Vires Acts

a. Consequences: on the Corporation, on the immediate parties, on the stockholders

Privano vs. Dela Rama Steamship Co. (96 Phil 335)

Carlos vs. Mindoro Sugar Co. (57 Phil 343)
Japanese Warnotes Claimants Assn. vs. SEC (110 Phil 540)
Crisologo - Jose vs. CA (117 SCRA 594)

VIII. BY- LAWS

Fleisher vs Botica Nolasco (47 Phil 583)

Loyola Grand Villas Assn. vs. CA (276 SCRA 681)
Govt vs. El Hogar Filipino (supra)
Gokongwei vs. SEC (89 SCRA 336)

IX. MEETINGS

1. Stockholders' / Members' Meeting

Board of Directors vs. Tan (105 Phil 426)

Ponce vs. Encarnacion (91 Phil 81)

SEC Memorandum Circular No. 3, Series of 2020

Notice of Regular Meetings of the Stockholders/Members

2. Directors' / Trustees' Meeting

SEC Memorandum Circular No. 6, Series of 2020

Guidelines on the Attendance and Participation of Directors, Trustees, Stockholders,
Members and Other Persons of Corporations in Regular and Special Meetings Through
Teleconferencing, Video Conferencing and Other Remote or Electronic Means of
Communication.

SEC Memorandum Circular No. 15, Series of 2001

Board Meeting Through Teleconferencing or Videoconferencing ("Tele/Video
Conferencing")

Expertravel & Tours, Inc. vs CA (GR No. 152393; 26 May 2005)

3. Right to Vote and Manner of Voting

a. Proxy and other representative voting

NIDC vs. Aquino (160 SCRA 153)

Lanuza, et. al., vs. CA (GR No. 131394; 28 March 2005)

SEC Memorandum Circular No. 4, Series of 2004

Voting by Mail and One Share-One Vote Policy

IX. STOCK and STOCKHOLDERS

1. Subscription Contract

Halley vs Printwell, Inc. (GR No. 157549, 30 May 2011)

Trillana vs Quezon College (93 Phil 383)

SEC Memorandum Circular No. 11, Series of 2016

Subscription Contracts

2. Pre-incorporation Subscription

National Exchange vs. Dexter (51 Phil 601)

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Syllabus Atty. Ma. Chona Caacbay
Corporation and Basic Securities Law 1st Semester, AY 2024-2025

3. Certificates of Stock and their Transfer

Uson vs. Diosomito (51 Phil 535)

Monserrat vs. Ceron (58 Phil 472)
Chua Guan vs. Samahang Magsasaka (62 Phil 472)
Padgett vs. Babcock & Templeton (59 Phil 232)
Lambert vs. Fox (26 Phil 588)
Embassy Farms vs. CA (188 SCRA 492)
Razon vs IAC (207 SCRA 510)
Rural Bank of Salinas vs. CA (210 SCRA 510)
Tay vs. CA (GR No. 126891, August 5, 1998)
Rural Bank of Lipa vs. CA (366 SCRA 740)
Tan vs. SEC (206 SCRA 740)
Nava vs. PEERS Marketing (74 SCRA 65)
Won vs. Wack Wack Golf (104 Phil 466)
De los Santos vs. Mc Grath (95 Phil 577)
Vicente Ponce vs. Alsons Cement Corporation (GR No. 139802; 10 December 2002)

4. Forged and Unauthorized Transfers

5. Issuance of Stock Certificates

Fua Cun vs. Summers

6. Watered Stocks

7. Enforcement and Payment of Unpaid Subscriptions

Velasco vs. Poizat (37 Phil 802)

De Silva vs. Aboitiz & Co. (44 Phil 755)
Lingayen Gulf vs. Baltazar (93 Phil 746)
Apocada vs. NLRC (175 SCRA 442)
Lumanlan vs. Cura (59 Phil 746)
PNB vs. Bitulok Sawmill (33 SCRA 136)
Edward Keller vs. COB Group (141 SCRA 86)
Garcia vs. Suarez (67 Phil 441)

8. Effects of Delinquency

9. Rights of Unpaid Shares

10. Lost or Destroyed Certificates

11. Rights and Liabilities of Stockholders

XI. CORPORATE BOOKS AND RECORDS

1. Books and Records to be Kept

2. Right of Inspection

W.G. Philpotts vs. Phil. Mfg. Corp. (49 Phil 471)

Pardo vs Hercules Lumber (47 Phil 964)
Vegaruth vs. Isabela Sugar (57 Phil 266)
Gokongwei vs. SEC (supra)
Gonzales vs. PNB (122 Phil 489)
PASAR vs. Lim (GR No. 172948, 5 October 2016)
Terelay Investment and Development Corporation vs Cecilia Yulo
(GR No. 160924, 5 August 2015)

XII. MERGER AND CONSOLIDATION

1. Requirements and Procedure

2. Effects

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Syllabus Atty. Ma. Chona Caacbay
Corporation and Basic Securities Law 1st Semester, AY 2024-2025

Associated Bank vs. CA (GR 123793, June 29, 1998)

Ong vs BPI Family Savings Bank (852 SCRA 614)
BPI vs. BPI Employees Union (658 SCRA 569)

3. Philippine Competition Act (RA 10667) and its Implementing Rules and Regulations

Acquisition, defined

Merger, defined

Rules on Mergers & Acquisitions (Sections 16-23)

Thresholds for Compulsory Notification

Prohibited Mergers & Acquisitions

Exemptions from Prohibited Mergers & Acquisitions

Merger of iPeople, Inc. and AC Education, Inc.

CD No. 42-M-038/2018

Acquisition by The Walt Disney Company of Shares in Twenty-First Century Fox, Inc.
Commission Decision No. M-33-028/2018

Acquisition by Robinsons Retail Holdings Inc. of Shares in Rustan Supercenters Inc.

Commission Decision No. 28-M-024/2018

Acquisition by Grab Holdings Inc. and MyTaxi.PH Inc. of Assets of Uber B.V. and Uber
Systems Inc. (PCC Case No. M-2018-001)

Acquisition by City Savings Bank, Inc. and Union Properties, Inc. of Shares in PETNET,
Inc., Commission Decision No. 16-M-014/2018

In the Matter of the Acquisition by Grab Holdings, Inc. and MyTaxi.PH, Inc., of
Assets of Uber B.V. and Uber Systems, Inc.
Commission Order No. M-2018-001

Joint Venture between Robinsons Land Corporation and Shang Properties, Inc.
Commission Decision No. 11-M-008/2018

XIII. APPRAISAL RIGHT

1. Definition; when exercised

2. Requirements and Procedure

3. Effect

4. When Right ceases

5. Cost of appraisal

XIV. NON-STOCK CORPORATIONS

1. Definition; Purpose

BCDA vs CIR (GR No. 205925, 20 June 2018)

2. Membership and Voting Rights

Chinese YMCA vs. Ching (71 SCRA 463)

Cebu Country Club vs. Elizagaque (542 SCRA 65)

3. Trustees and Officers

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Syllabus Atty. Ma. Chona Caacbay
Corporation and Basic Securities Law 1st Semester, AY 2024-2025

Lions Club Int'l vs. CA (121 SCRA 621)

4. Other references:

SEC Memorandum Circular No. 8, Series of 2006

Revised Guidelines on Foundations

SEC Memorandum Circular No. 4, Series of 2013

Amendment of Part I (4) (A) & (B) of SRC Rule 68, as amended

SEC Memorandum Circular No. 10, Series of 2016

Guidelines on the Issuance of Certificate on the Nationality of Non-Stock Corporations

XV. CLOSE CORPORATIONS

1. Definition; Permissive Provisions

2. Effects of Breach of Qualifying Provisions

3. Stockholders' Agreement

4. When Board Meeting Not Necessary

5. Pre-Emptive Right

6. Deadlocks

7. Withdrawal of Stockholders / Dissolution

Dulay Enterprises vs. CA (225 SCRA 678)

Naguiat Enterprises vs. NLRC (268 SCRA 546)

XVI. SPECIAL CORPORATIONS

1. Educational Corporations

2. Religious Corporations

a. Corporation Sole

Roman Catholic Apostolic Church vs. LRC (102 Phil 596)

Director vs. CA (158 SCRA 568)
Republic vs. IAC (168 SCRA 165)

i. Filling up of Vacancies

ii. Dissolution

3. Religious Societies

4. One Person Corporation

SEC Memorandum Circular No. 7, Series of 2019

Guidelines on the Establishment of a One Person Corporation (OPC)

SEC Memorandum Circular No. 27, Series of 2020

Guidelines for the Conversion of Corporations Either to One Person Corporation
or to Ordinary Stock Corporation

5. Corporations Vested with Public Interest

XVII. DISSOLUTION AND WINDING UP

SEC Memorandum Circular No. 5, Series of 2022

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Syllabus Atty. Ma. Chona Caacbay
Corporation and Basic Securities Law 1st Semester, AY 2024-2025

Guidelines on Corporate Dissolution under Sections 134, 136 and 138 of the Revised Corporation
Code

1. Methods of Dissolution

a. Expiration of Corporate Term

PNB vs. CFI (209 SCRA 294)

b. Voluntary Dissolution

i. Where no creditors are affected

ii. Where creditors are affected

c. Shortening of Corporate Term

d. Involuntary Dissolution

Gov't vs. Phil. Sugar Estate (39 Phil 15)

Gov't vs. El Hogar Filipino (supra)
Republic vs. Security Credit (19 SCRA 59)
Republic vs. Visaya Land (81 SCRA 9)
Financing Corporation vs. Teodoro (94 Phil 687)

2. Effects of Dissolution

Buenaflor vs. Camarines Sur Industry (108 Phil 427)

Cebu Port Labor Union vs. State Marine (101 Phil 468)
Gonzales vs. Sugar Regulatory Administration (174 SCRA 377)

3. Liquidation and Winding Up

National Abaca vs. Pore (2 SCRA 989)

Sumera vs. Valencia (67 Phil 721)
Board of Liquidators vs. Kalaw (20 SCRA 987)
Gelano vs. CA (103 SCRA 90)
Republic vs. Marsman (44 SCRA 481)

Chung Ka Bio vs IAC (163 SCRA 534)

Clemente vs. CA (242 SCRA 717)

XVIII. FOREIGN CORPORATIONS

(read together with Retail Trade Law and Foreign Investments Act and their amendments)

1. Definition

2. Modes of Entry

3. Application of License

Subsidiary (FIA Form F-100)

Branch Office (FIA Form F-103)
Representative Office (FIA Form F104)
Regional Operating Area Headquarters
Regional Area Headquarters

4. Resident Agent

5. Effect of Doing Business Without a License

Mentholatun vs. Mangaliman (72 Phil 524)

Marshall-Wells vs. Elser (46 Phil 70)
Bulakhids vs. Navarro (142 SCRA 1)
Swedish East Asia vs. Manila Port Services (25 SCRA 632)
Antam Consolidated vs. CA (143 SCRA 288)

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Syllabus Atty. Ma. Chona Caacbay
Corporation and Basic Securities Law 1st Semester, AY 2024-2025

Facilities Management vs. Dela Osa (89 SCRA 131)

Far East International vs. Nankai Kogyo (6 SCRA 725)
Communication Materials and Design vs. CA (260 SCRA 673)
Western Equipment vs. Reyes (51 Phil 115)
General Garments vs. Director (41 SCRA 50)
Puma Sportshufabriken vs. IAC (158 SCRA 233)
Le Chemise Lacoste vs. Fernandez (120 SCRA 377)
Magna Ready Mix Concrete Corporation vs Anderson Bjornstad Kane Jacobs, Inc.,
GR No. 196158, 20 January 2021

6. Capacity to Sue

Atlantic Mutual Insurance vs. Cebu Stevedoring (17 SCRA 1037)

Olympia Business Machines vs. E. Razon Inc. (155 SCRA 208)
Time vs. Reyes (39 SCRA 303)
Global Business Holdings, Inc. vs. Surecomp Software, B.V.
(GR No 173463, 13 October 2010)

7. Laws Governing Foreign Corporations

M.E. Gray vs. Insular Lumber (67 Phil 139)

8. Amendment of the License

9. Merger / Consolidation

10. Revocation of License

11. Withdrawal of License

12. Securities Deposit

SEC Memorandum Circular No .17, Series of 2019

Revised Guidelines on Securities Deposit of Branch Offices of Foreign Corporations

SEC Memorandum Circular No. 24, Series of 2020

Guidelines on the Posting of Additional Securities Deposit, Substitution of Securities
Deposit, and Change of Resident Agent

XIV. MISCELLANEOUS PROVISIONS

1. Investigations, Offenses, Penalties

2. Arbitration for Corporations

PART 2
PRESIDENTIAL DECREE 902-A

I. Devices or Schemes Amounting to Fraud

II. Intra-Corporate Controversies

Medical Plaza Makati Condominium Corporation vs. Cullen

GR No. 181416; 11 November 2013

SEC Memorandum Circular No. 8, Series of 2022

Guidelines on Arbitration of Intra-Corporate Disputes for Corporations

III. Controversies in the Election, Appointment or Removal of Directors / Officers

IV. Appointment of Management Committee, Board or Body

R.J. Jacinto vs. FWCC (410 SCRA 140)

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Syllabus Atty. Ma. Chona Caacbay
Corporation and Basic Securities Law 1st Semester, AY 2024-2025

Sy Chim vs. Sy Siy Ho & Sons (480 SCRA 206)

PART 3
SECURITIES REGULATION CODE

I. Section 3: Definition of Terms

II. Section 5: Powers and Functions of the Commission

SEC Memorandum Circular No. 11, Series of 2003

Supervision Over Registered Corporations

III. Chapter III: Registration of Securities

Section 8 (Registration Statement)

SEC Memorandum Circular No. 13, Series of 2017

Rules and Regulations on Minimum Public Ownership (MPO) on Initial Public Offerings.

SEC vs Howey Co.

328 U.S. 293 (1946)

SEC vs CJH Development Corp.

GR No. 210316, 28 Nov. 2016

Power Homes Unlimited Corp. vs SEC

(GR No. 164182, 26 February 2008)

SEC vs. Performance Foreign Exchange Corporation

(GR No. 154131, 20 July 2006)

Section 9.1 Exempt Securities

Section 9.2 Other Exempt Transactions

Section 10. Exempt Transactions; Isolated Transactions; Qualified Buyers; Limited Public
Offerings and other Exempt Transactions; Application for Confirmation of Exemption

Section 13 Suspension or Revocation of Registration of Securities

Section 14 Amendments to the Registration Statement and Prospectus

Section 15 Reportorial Requirements

Section 19 Tender Offer; Mandatory Tender Offer and Exemptions

Justee Terms Enterprise vs. SEC (CA GR. SP. No. 48013, July 30, 1999)
China Banking vs. CA (270 SCRA 503)
People vs. Petralba (439 SCRA 158)

Section 23 Transactions of Directors, Officers and Principal Stockholders

IV. Chapter VII: Prohibitions on Fraud, Manipulation and Insider Trading

Section 24 Manipulation of Security; Devices and Practices

Section 25 Regulation of Option Trading

Section 26 Fraudulent Transactions

Section 27 Insider’s Duty to Disclose When Trading

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Syllabus Atty. Ma. Chona Caacbay
Corporation and Basic Securities Law 1st Semester, AY 2024-2025

Others: Scalping
Daisy Chain
Flipping
Stop-loss Order
Boiler Room Operations

Ponzi Scheme vs Pyramid Scheme

People vs Palmy Tibayan and Rico Z. Puerto

GR Nos. 209655-60, 14 January 2015

V. Chapter VIII: Registration of Securities Market Professionals

Section 28 Broker Dealer; Registration Requirements ;Registration of Salesmen and Associated

Persons of Broker Dealers; Registration Requirements

VI. Chapter IX: Exchanges and other Securities Trading Markets

Section 38 Independent Directors

SEC Memorandum Circular No. 9, Series of 2011

Term Limits for Independent Directors

SEC Advisory dated 20 July 2015

Clarification on the Term Limits of Independent Directors

SEC Advisory dated 31 March 2016

Term Limits for Independent Directors

SEC Memorandum Circular No. 4, Series of 2017

Term Limit of Independent Directors

SEC Memorandum Circular No. 7, Series of 2018

Amendment to Rule 38.2.7 of the 2015 IRR of the SRC

-END-

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