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CORPORATION LAW
Atty. R. I. Gatchalian

Assignment for Sept. 12 & 15, 2014


(a) Election of Directors and Trustees

(1) Sec. 24, Corp. Code

(b) Amendment of Articles of Incorporation

(1) Sec. 16, Corp. Code

(c) Investment in Another Business or Corporation

(1) Sec. 42, Corp. Code

(d) Merger and Consolidation

(1) Sec. 77, Corp. Code

(e) Increase or Decrease of Capital Stock and the Incurring or Creating of Bonded
Indebtedness

(1) Sec. 38, Corp. Code

(f) Adoption, Amendment and Repeal of By-Laws

(1) Sec. 48, Corp. Code

(g) Declaration of Stock Dividends

(1) Sec. 43, Corp. Code

(h) Management Contracts

(1) Sec. 44, Corp. Code

(i) Fixing of Consideration of No-par Value Shares

(1) Sec. 62, Corp. Code

2. Agreements Affecting Voting Rights

(a) Proxies

(1) Sec. 58, Corp. Code
(2) Sec. 89, Corp. Code

(b) Voting Trust Agreements

(1) Nature; Difference with Proxy

i. Lee vs. CA, 205 SCRA 752 (1992)

(2) Requisites of Valid Voting Trust Agreement

i. Sec. 59, Corp. Code

(3) Pre-termination of Voting Trust Agreement

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i. Sec. 59, Corp. Code

(4) As Part of Loan Agreement

i. Sec. 59, Corp. Code
ii. National Investment and Development Corp. vs. Aquino, 163 SCRA
153 (1988)

(c) Pooling Agreement and Other Stockholders Agreement

(1) Sec. 100 (2), Corp. Code

3. Stockholders or Members Meetings

(a) Calls and Types of Meeting

(1) Sec. 49-50, Corp. Code

(b) Place and Time of Meeting

(1) Sec. 51, Corp. Code
(2) Sec. 93, Corp. Code

(c) Who Can Call A Meeting

(1) Sec. 50, Corp. Code

(d) Quorum

(1) Sec. 52, Corp. Code

(e) Minutes of Meeting

(1) Sec. 74, Corp. Code

4. Right to Inspect and Examine Corporate Records

(a) Basis of Right to Inspect

(1) Gokongwei, Jr. vs. SEC, 89 SCRA 336 (1979)
(2) Africa vs. PCGG, 205 SCRA 39 (1992)
(3) Republic vs. Sandiganbayan, 199 SCRA 39 (1991)

(b) Specified Records Subject to Inspection

(1) Sec. 74, Corp. Code
(2) W. G. Philpotts vs. Phil. Manufacturing Corp., 40 Phil. 471 (1919)
(3) Right to Financial Statements

i. Sec. 75, Corp. Code

(4) Annual Report of Corporations

i. Sec. 141, Corp. Code

(c) Manner of Availing of Right to Inspect

(1) Sec. 74, Corp. Code
(2) Pardo vs. Hercules Lumber Co., 47 Phil. 964 (1924)

(d) Who May Exercise Right to Inspect

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(1) W. G. Philpotts vs. Phil. Manufacturing Corp., 40 Phil. 471 (1919)

(e) Nature and Scope of Right to Inspect

(1) Gokongwei, Jr. vs. SEC, 89 SCRA 336 (1979)
(2) Veraguth vs. Isabela Lumber Co., 57 Phil. 266 (1932)
(3) Africa vs. PCGG, 205 SCRA 39 (1992)
(4) Gonzales vs. PNB, 122 SCRA 489 (1983)
(5) Republic vs. Sandiganbayan, 199 SCRA 39 (1991)

(f) Purposes of Inspection

(1) pp. 505-506, Phil. Corporate Law, Villanueva, C., 2001 Ed.

(g) Remedies if Inspection is Denied

(1) Mandamus

i. Rule 7, Interim Rules of Procedure Governing Intra-Corporate
Controversies

(2) Damages
(3) Criminal Suit

i. Sec. 144, Corp. Code


5. Appraisal Right

(a) Nature of Appraisal Right
(b) Who is Entitled to the Exercise
(c) Instances When Right is Exercisable

(1) Sec. 37, 42 and 81, Corp. Code

(d) How Right is Exercised

(1) Sec. 82, Corp. Code

(e) Effect of Demand for Payment

(1) Sec. 83, Corp. Code

(f) Notation on Certificates; Right of Transferee

(1) Sec. 86, Corp. Code

(g) How Payment of Fair Value Effected

(1) Sec. 82, Corp. Code

(h) When Right to Payment Ceases

(1) Sec. 84, Corp. Code

(i) Party Who Bears Costs of Appraisal

(1) Sec. 85, Corp. Code

(j) Denial of Appraisal Right

(1) p. 514, Philippine Corporate Law, Villanueva, C., 2001 Ed.
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6. Derivative Suits

(a) Angeles vs. Santos, 64 Phil. 697 (1937)
(b) Bitong vs. CA, 292 SCRA 503 (1998)
(c) Definition

(1) Western Institute of Technology, Inc. vs. Salas, 278 SCRA 216 (1997)

(d) Requisites for Filing of Derivative Suit; Proper Party

(1) San Miguel Corp. vs. Kahn, 176 SCRA 447 (1989)
(2) Pascual vs. Orozco, 19 Phil. 83 (1911)
(3) Republic vs. Cuaderno, 19 SCRA 671 (1967)
(4) Everett vs. The Asia Banking Corp., 49 Phil. 512 (1926)
(5) Evangelista vs. Santos, 86 Phil. 387 (1950)
(6) Hi-Yield Realty, Inc. vs. CA, 590 SCRA 548 (2009)
(7) Lisam Enterprises, Inc. vs. BDO Unibank, Inc., 670 SCRA 310 (2012)
(8) Go vs. Distinction Properties Development & Construction, Inc., 671 SCRA
461 (2012)
(9) Sec. 1, Rule 8, Interim Rules of Procedure Governing Intra-Corporate
Controversies (Feb. 2001)

(e) Exhaustion of Intra-Corporate Remedies

(1) Republic vs. Cuaderno, 19 SCRA 671 (1967)
(2) Central Cooperative Exchange, Inc. vs. Tibe, Sr. 33 SCRA 593 (1970)
(3) Western Institute of Technology, Inc. vs. Salas, 278 SCRA 216 (1997)
(4) Reyes vs. Tan, 3 SCRA 198 (1961)

(f) Nature of Reliefs Prayed For

(1) Evangelista vs. Santos, 86 Phil. 387 (1950)
(2) Legaspi Towers 300, Inc. vs. Muer, 673 SCRA 453 (2012)

(g) Appointment of Receiver

(1) Chase vs. CFI of Manila, 18 SCRA 602 (1966)
(2) Reyes vs. Tan, 3 SCRA 198 (1961)

(h) Business Judgment Rule

(1) Republic vs. Cuaderno, 19 SCRA 671 (1967)
(2) Reyes vs. Tan, 3 SCRA 198 (1961)
(3) Pascual vs. Del Sanz Orozco, 19 Phil. 82 (1911)
(4) Republic vs. Phil. Resources Dev. Corp., 102 Phil. 960 (1958)
(5) pp. 526-528, Phil. Corporate Law, Villanueva C., 2001 Ed.

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