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CORPORATION LAW
Atty. R. I. Gatchalian

Assignment for July 11 and 14, 2014

I. CORPORATE CONTRACT LAW

1. Pre-Incorporation Stages: Promoters Contract

(a) Who is a Promoter?

(1) Sec. 3.10, Securities Regulation Code (RA No. 8799)

(b) Pre-incorporation Subscription Agreement

(1) Sec. 60 and 61, Corp. Code

(c) Other Promoters Contract

(1) Cagayan Fishing Development Co., Inc. vs. Teodoro Sandiko, 65 Phil.
223 (1937)
(2) Rizal Light & Ice Co. vs. Municipality of Morong, Rizal, 25 SCRA 285
(1968)

2. Articles of Incorporation and By-Laws

(a) Government of the Philippine Islands vs. Manila Railroad Co., 52 Phil
699 (1929)
(b) Rural Bank of Salinas vs. CA, 210 SCRA 510 (1992)
(c) Pea vs. CA, 193 SCRA 717 (1991)
(d) China Banking Corp. vs. CA, 270 SCRA 503 (1997)
(e) PMI Colleges vs. NLRC, 277 SCRA 462 (1997)

3. Ultra Vires Doctrine

(a) Sec. 36 and 45, Corp. Code
(b) 3 Types of Ultra Vires Cases

(1) p. 161, Philippine Corporate Law, Villanueva, C., 2001 Ed.
(2) Montelibano vs. Bacolod-Murcia Milling Co., Inc., 5 SCRA 36 (1962)
(3) Pirovano vs. De la Rama Steamship Co., 96 Phil. 335 (1954)
(4) Carlos vs. Mindoro Sugar Co., 57 Phil. 343 (1932)
(5) Republic vs. Acoje Mining Co., Inc., 3 SCRA 361 (1963)
(6) Ramirez vs. Orientalist Co., 38 Phil. 634 (1918)
(7) PNB vs. CA, 94 SCRA 357 (1979)
(8) Francisco vs. GSIS, 7 SCRA 577 (1963)
(9) Vicente vs. Geraldez, 52 SCRA 210 (1973)
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(10) Crisologo-Jose vs. CA, 177 SCRA 594 (1989)

(c) Corporate Dealings with Directors and Officers

(1) Prime White Cement Corp. vs. IAC 220 SCRA 103 (1993)

II. ARTICLES OF INCORPORATION

1. Registration

(a) Sec. 2, Corp. Code
(b) Examination and Approval/Disapproval by the SEC

(1) Sec. 17, Corp. Code
(2) Sec. 6(h), PD 902-A

2. Contents

(a) Sec. 14, Corp. Code
(b) Treasurers Affidavit

(1) Sec. 14-15, Corp. Code

3. Other Documentary Requirements

(a) Sec. 14, Corp. Code
(b) SEC Resolution No. 331, Series of 2012
(c) Stock and Transfer Book

4. Corporate Name

(a) Sec. 18, Corp. Code
(b) Red Line Trans. vs. Rural Transit, 60 Phil. 549 (1934)
(c) Pison-Arceo Agricultural and Development Corp. vs. NLRC, 279
SCRA 312 (1997)
(d) Guidelines on Corporate Name

(1) SEC Memorandum No. 14, Series of 2000 (Oct. 24, 2000)
(2) SEC Memorandum No. 5, Series of 2008, (July 17, 2008) re:
Guidelines and Procedures on the Use of Corporate and Partnership
Names
(3) SEC Memorandum No. 12, Series of 2008 (Dec. 23, 2008) re:
Business or Tradenames

(e) Change of Corporate Name

(1) Philippines First Insurance Co. vs. Hartigan, 34 SCRA 252 (1970)
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5. Purpose Clause

(a) Uy Siuliong vs. Director of Commerce, 40 Phil. 541 (1919)
(b) Asuncion vs. De Yriarte, 28 Phil. 67 (1914)
(c) Investment in Non-Primary Purpose Activities

(1) Sec. 42, Corp. Code

6. Principal Place of Business

(a) Residence of Corporation

(1) Art. 51, Civil Code
(2) Clavecilla Radio System vs. Antillon, 19 SCRA 379 (1967)
(3) SEC Circular No. 3, Series of 2006 (Feb. 16, 2006) re: Principal Office
Address, etc.
(4) Sec. 5, Rule 1, Rules of Procedure Governing Intra-Corporate
Controversies

7. Corporate Term

(a) Sec. 11, Corp. Code
(b) Commencement of Corporate Existence

(1) Sec. 19, Corp. Code

8. Incorporating Stockholders or Members

(a) Sec. 10, Corp. Code

9. Capital Structure at Registration

(a) Sec. 12, Corp. Code

10. Subscription and Paid-Up Requirements

(a) Sec. 13, Corp. Code
(b) Sec. 137, Corp. Code
(c) Issuance of Par Value Shares of Stock

(1) Sec. 62, Corp. Code

11. Amendments to Articles of Incorporation

(a) Sec. 16, Corp. Code
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