Escolar Documentos
Profissional Documentos
Cultura Documentos
QUEZON UNIVERSITY
SCHOOL OF L AW
I. HISTORICAL BACKGROUND
- Castillo v Balinghasay, 440 SCRA 4423
II. CONCEPTS
Definition (Sec. 2; Articles 44(3), 45, 46 and 1775, Civil Code)
- PNB v Andrada Electric & Engineering Co., 381 SCRA 244
- Construction & Dev. Corp. v Cuenca, 466 SCRA 714
2. Corporation as a Person
a. Entitled to Equal Protection of the Law
- Smith Bell & Co. v Natividad, 40 Phil, 136, 144
b. Unreasonable Searches and Seizure
- Stonehill v. Diokno, 20 SCRA 383
c. But NOT Entitled to Privilege Against Self Incrimination
- Bataan Shipyard v PCGG, 150 SCRA 181
3. Practice of Profession
- ULEP v. The Legal Clinic, 223 SCRA 378
- Alfafara v. Acebedo Optical Co., 381 SCRA
b) Public Utilities (Sec. 11, Art. XII Constitution; People v. Quasha, 93 Phil
333)
c) Mass Media (Sec. 11(1), Art. XII Constitution)
d) Advertising business (Sec. 11(2), Art. XII Constitution)
e) War-time test (89 Phil 54; 90 Phil 744)
f) Investment test as to Philippine Nationals (Sec. 3(a) & (b) RA 7042,
Foreign Investments Act of 1992
g) Grandfather Rule/CONTROL TEST (NARRA NICKEL MINING AND
DEVELOPMENT CORP., TESORO MINING AND DEVELOPMENT, INC.,
and McARTHUR MINING, INC. vs. REDMONT CONSOLIDATED MINES
CORP) –
h) Special Classifications (Sec. 140)
V. CLASSIFICATION OF CORPORATIONS
- Sawadjaan v. CA, 459 SCRA 516
- Pioneer Surety vs. CA, 175 SCRA 668
- Shipside, Inc. vs. CA, 352 SCRA 2001
- Baluyot vs. Holganza, 325 SCRA 248
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(b) Disadvantages:
1. Abuse of corporate management
2. Abuse of limited liability feature
3. High cost of maintenance
4. Double taxation
• Dividends received by individuals from domestic corporations are
subject to final 10% income tax earned on or after 1 January 1998 (Sec.
24(B)(2), 1997 NIRC
• Inter-corporate dividends between domestic corporations, however, are
not subject to any income tax (Sec. 27(D)(4), 1997 NIRC
• There is reimposition of the 10% "improperly accumulated earnings tax"
for holding companies (Sec. 29, 1997 NIRC)
* Franchise
* Steps in the Creation of a Corporation
a. Promotion
b. Incorporation
c. Formal organization and commencement of business operations
-Incorporation Contracts
- Who are promoters?
VIII. BY-LAWS
a. Nature and Functions
- Grace Christian High School v. Court of Appeals, 281 SCRA 133 (1997)
- Government of P.I. v. El Hogar Filipino, 50 Phil. 399
b. Adoption Procedure (Sec. 46)
c. Contents (Sec. 47)
d. Amendments (Sec. 48)
2. Express Powers - Secs.36, 37 and 81(1), 38, 40, 42, 43, 44,
- Central Textile Mills, Inc. v. NWPC, 260 SCRA368 (1996)
- Madrigal & Co. v. Zamora, 151 SCRA 355 (1987)
- Litonjua v. Eternit Corp. , 490 SCRA 204 (2006)
- Islamic Directorate v. CA, 272SCRA 454 (1997);
- Nielson & Co. v. Lepanto Consolidated Mining Co., ,26 SCRA 540
3. Implied Powers - Asia Investments Industries v. CA, 403 SCRA 452 (2003)
4. Incidental Powers - Atrium Management Corp. v. CA, 353 SCRA 23 (2001)
5. Other Powers
- Firme v.Bukal Enterprises and Dev. Corp., 414 SCRA 190 (2003)
- Chi na B anki ng Corp . v. CA, 270 SCRA 503 (1997)
- TamWing Tak v. Makasiar, 350 SCRA 475 (2001)
- Central Cooperative Exchange Inc. v. Enciso, 162 SCRA 706
- Lopez Realty v. Fontecha, 247 SCRA183, 192 (1995)
- Tuas on & Co. v. B ol anos , 95 Phil. 106 (1954);
- SEC Opinion, dated 29 February 1980
10. Right to Proportionate Share of Remaining Assets Upon Dissolution (Secs. 122,
94 and 95)
- Central Textile Mills v. Nat'l Wage and Productivity Commission, 260 SCRA 368
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