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The trial court ruled in favor of Land Bank but Oate was absolved
from liabilities. The Court of Appeals affirmed the decision of the
trial court.
The mere fact that Oate owned the majority of the shares of ECO
is not a ground to conclude that Oate and ECO is one and the
same. Mere ownership by a single stockholder of all or nearly all of
the capital stock of a corporation is not by itself sufficient reason
Anent the issue of the corporate name , the fact that Oates
initials coincide with the corporate name ECO is not sufficient to
disregard the corporate fiction. Even if ECO does stand for
Emmanuel C. Oate, it does not mean that the said corporation is
merely a dummy of Oate. A corporation may assume any name
provided it is lawful. There is nothing illegal in a corporation
acquiring the name or as in this case, the initials of one of its
shareholders.