corporation code refresher pt1

8/18/2019 Corporation Code Refresher pt1

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CORPORATION LAW MIDTERMS | PROF. M.I.P. ROMERO (2015 - 2016)

I. DEFINITIONS/ ATTRIBUTES OF A CORPORATION

A co !o "#$o% $& "% " #$'c$" *$%+ c *"#*, o!* "#$o% o "" $%+ # * $+ # o &3cc*&&$o% "%, # * !o * "## $ 3#*& "%,

! o!* #$*& *4! *&& "3# o $ *, " o $%c$,*%# #o $#&*4$*%c* (S*c. 2).

Co !o "#$o%& !" #%* & $!& "%, "&&oc$"#$o%& o ! $ "#* $%#* *o !3 !o&* #o $c # * " + "%#& " 3 $,$c" !* &o%" $#&*!" "#* "%, ,$$%c# o7 # "# o *"c & " * o ,* !" #%* o7*7 * (A #. 88.9: CC).

RA1066;< Mo%o!o $*& (2015)SEC. 2. Declaration of Policy. = T * *>c$*%c o 7" ?*#co7!*#$#$o% "& " 7*c "%$&7 o " oc"#$%+ +oo,& "%, &* $c*& $&" +*%* " "cc*!#*, ! *c*!#. T * S#"#* *co+%$ *& # "# !"7*"&3 *& 3%,* #"?*% #o $ * " $ * ?* &*c#o & $% # * *co%o7%**, #o * *$% o c*, 7*"&3 *& # "# &" *+3" , co7!*#$#$ *co%,$#$o%&. T * S#"#* " &o *co+%$ *& # "# # * ! o $&$o% o *@3"o!!o #3%$#$*& #o " ! o7o#*& *%# *! *%*3 $" &!$ $# *%co3 "+*&! $ "#* $% **%#& "c$ $#"#*& #*c %o o+ ,* * o!7*%# "%,# "%& * "%, *% "%c*& *&o3 c* ! o,3c#$ $# . U%*%c37 * *,7" ?*# co7!*#$#$o% " &o &* *& # * $%#* * o co%&37* & " o $%+ # *7 #o *4* c$&* # *$ $+ # o c o$c* o * +oo,& "%,&* $c*& o * *, $% # * 7" ?*#.P3 &3"%# #o # * co%$#3#$o%" +o" & o # * %"#$o%" *co%o7 #o"##"$% " 7o * *@3$#" * ,$ $ 3#$o% o o!!o #3%$#$*& $%co7*"%, *" # : " &3"$%*, $%c *"&* $% # * "7o3%# o +oo,& "%,&* $c*& ! o,3c*, # * %"#$o% o # * *%*'# o # * !*o! *:"%, "% *4!"%,$%+ ! o,3c#$ $# "& # * ?* #o "$&$%+ # * @3" $# o

$ * o " *&!*c$" # * 3%,* ! $ $ *+*, "%, # * co%$#3#$o%"7"%,"#* # "# # * S#"#* & " *+3 "#* o ! o $ $# 7o%o!o $*&

*% # * !3 $c $%#* * &o *@3$ *& "%, # "# %o co7 $%"#$o%& $%* "$%# o # ",* o 3% "$ co7!*#$#$o% & " * " o *, # *

S#"#* & " <(") E% "%c* *co%o7$c *>c$*%c "%, ! o7o#* ** "%, "$co7!*#$#$o% $% # ",* $%,3 "%, " co77* c$" *co%o7$c"c#$ $#$*& "& * "& *" $& " N"#$o%" Co7!*#$#$o% Po $c #o *$7! *7*%#*, # * o * %7*%# o # * R*!3 $c o # *P $ $!!$%*& "%, " o $#& !o $#$c" "+*%c$*& "& " o *:( ) P * *%# *co%o7$c co%c*%# "#$o% $c $ co%# o # *! o,3c#$o% ,$ $ 3#$o% # ",* o $%,3 # "# $ 3%,3 $ *

co7!*#$#$o% *&&*% 7"%$!3 "#* o co% $c# # * ,$&c$! $%* o **7" ?*#&: "%,(c) P*%" $ * " o 7& o "%#$-co7!*#$#$ * "+ **7*%#& " 3&* o ,o7$%"%# !o&$#$o% "%, "%#$-co7!*#$#$ * 7* +* & "%,"c@3$&$#$o%& $# # * o *c#$ * o ! o#*c#$%+ co%&37* * " *"%, ", "%c$%+ ,o7*$c "%, $%#* %"#$o%" # ",* "%, *co%o7$c,* * o!7*%#.

D" #7o3# Co *+* . Woo, " ,

L*+$& "#3 * c"%%o# 3 $7!o&* $#& $ o * # * !" #$*& = ! $ $# o co%# "c#& 73 " &o * *&!*c#*, $*. A/I * * # * $+ #& & o3 ,%o# * ", * &* " *c#*, "7*%,7*%#& $% # * " .

A. A #$'c$" B*$%+ = "& *+" 3 $,$c" c"!"c$# #oco%# "c#/# "%&"c#

•

Co77*%c*7*%# o 3 $,$c" !* &o%" $#= 3 $,$c" !* &o%" $#"% " #$'c$" *$%+ # "# 7" &3* o *&3*,co% * *, "

1) *%* " " < CORPORATION CODE= R*+$ "#$o% $% # * SEC 3!o% $&&3"%c* o # *

c* #$'c"#* o $%co !o "#$o% # * SEC2) S!*c$" " /c " #* &< 3!o% * *c#$ $# o # * " o"& ! o $,*, # * " /c " #* $c *4! *&& "#*& "&!*c$'c #$7*/,"#* o * *c#$ $#

= CORPORATION SOLER* $+$o3& *%#$#$*& o co !o "#$o%& $#o%* *",/7*7 * *.+. " $ * ,*!o!* ! $* *#c.Co77*%c*7*%# = 3!o% ' $%+ o # *" #$c *& $# # * SEC.

= PARTNERS IPCo77*%c*7*%# = 3!o% 7**#$%+ o # * 7$%,& co%# "c#<

• P9000 o "&&*#&< *co , SEC

• F"$ 3 * #o *co ,< &"* *c# 3% *&& o# *$!3 "#*, !" #$*& "cco ,"%c* $# A #&. 1;;2

1;6 1;6;: CC.= UNRE ISTERED ASSOCIATIONSA #. 9: Co%$#3#$o%

"& P (R3 * 18. : R3 *& o Co3 #)No *+$ "#$o% %o P (A #. 1;;5 CDoc# $%* o $7$#*, $" $ $# *4c*!#$o%&

= CORPORATION *o!!*"& P

= SOLE PROPRIETORS IPNo &*!" "#* "%, ,$$%c# P ! o! $*#oCo77*%c*7*%# = *+$ "#$o% $% D

o 3&$%*&& !* 7$#& !" 7*%##"4*&

M"%+$ " . CA( R 12502;: /12/ 02)

CASE A AINST PROPRIETOR DOIN BUSINESS IN T E NAME OFF$ $%+ o co7! "$%# $% P"&" $& %o# # * ! o!* *%3*. I# 73 # * *&$,*%c* o # * !*#$#$o%* o *&!o%,*%#. No " "3# o $&o * ! o! $*#o & $!& #o ' * " &3$# $% co3 #. A &o * ! o! $*#o,o*& %o# !o&&*&& " 3 $,$c" !* &o%" $# &*!" "#* "%, ,$

o7 # * !* &o%" $# o # * o %* o # * *%#* ! $&*. T *7* * *co+%$ *& # * *4$*%c* o " &o * ! o! $*#o & $!

o 7 o 3&$%*&& o +"%$ "#$o% co%,3c#*, o ! o'# " &$%$%,$ $,3" "%, *@3$ *& $#& ! o! $*#o o o %* #o &*c3 * $c"%, !* 7$#& *+$* $#& 3&$%*&& %"7* "%, !" #"4*& #o%"#$o%" +o * %7*%#. T * " ,o*& %o# * " &*!" "#* *+!* &o%" $# o% # * &o * ! o! $*#o & $! o *7!o * $# #o ' *,* *%, "% "c#$o% $% co3 #.

E4c* *%# G3" $# A!!" * . W$% M3 #$! * R$c B3$ ,* &5; SCRA 2;2 (200H)

C AN E OF PLAINTIFF< T * o $+$%" !*#$#$o% "& $%$#3W$% $c $& " SEC- *+$* *, co !o "#$o%. I# ' *, " co *c#$o&37 o 7o%* &3$# $c $% o *, " co% 3c#$o% co%#*%#* *, $%#o !*#$#$o%* M . $%+. T * co3%&* o W$% #o c "%+* # * %"7* o # * ! "$%#$ $% # * &3$# #o M3 #$-R$cc "%+* c"%%o# * co3%#*%"%c*,. T * ! "$%#$ $% # * co *c#&3$# $& " co !o "#$o%. T * %"7* c"%%o# * c "%+*, #o # "# o "&o * ! o! $*#o & $!. A+"$% " &o * ! o! $*#o & $! $& %o#

$# 3 $,$c" !* &o%" $# #o ' * o ,* *%, "% "c#$o%. L"##* %o c"3&* o "c#$o% * *% *% *%#$#$*& " * 3 # * &"7* !" #

") R$+ #& o " 3 $,$c" !* &o%• Po&&*&& ! o!* #$*& $%c3 c $7$%" "%, c$ $

(A #. 86 CC)• A #. 9 Co%$#3#$o%

o L$ *o L$ * # = N/Ao P o!* #o U% *"&o%" * &*" c *& "%, &*$ 3 *&o To &3* "%, * &3*,

B"c * J Co. (P $ &.) I%c. . R3$(9; SCRA 29: 1H;1)

Co !o "#$o%& " * # *$ *&!*c#$ * !* &o%" $#$*& &*!" "#,$$%c# o7 # * !* &o%" $# o * *$% !*#$#$o%* & *+"# * "7o3%# o & " *& o oc? o # * $%#* * o *"c o # *7&"$, co !o "#$o%& "#* * # * o>c*& # * o , # * *$% 7

*. I#& ! o!* # c"%%o# * #"?*% $# o3# co7!*%&"#$o%.

.E. S. T$


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B"#""% S $! " , . PC(150 SCRA 1 1: 1H ;)

P" #%* & $!& co3 , %o# * ! *&37*, #o " * "$ *, # *$$%,$ $,3" $+ #& "+"$% &* -$%c $7$%"#$o%. A !" #%* & $! $& "%*4#*%&$o% o # * !* &o%& o !" #%* & # * *$%.

oo, S *! * , Fo3%,"#$o% I%c.(A.M. No. 0H-6-H SC: /1H/0H)

E4*7!#$o% o7 *+" "%, ' $%+ **& 3%,* # * F ** Acc*&&C "3&* ,o*& %o# *4#*%, #o 3 $,$c" !* &o%" $# .

) C $7$%" L$" $ $# (PD115)*%* " R3 *<

• 7*%& *"• I # * !*%" # $& $% '%* # * co !o "#$o% 7" * * ,

$" * $ # * !*%" "#3#* & " *4! *&& "#* &o.

E4c*!#$o% #o # * *%* " R3 *<C $%+ . S*c. o 3$c*

(F* . 6 2006)

CONKICTION FOR AMLA B T E INDIKIDUAL< P*#$#$o%* $ *+"o o *, 7o%* #o * 3&*, o # * co !o "#$o%. I%,$ $,3"$" $ $# & " "!! "+"$% # * !*#$#$o%* . I " co !o "#$o%

!" #%* & $! "&&oc$"#$o% o o# * 3 $,$c" *%#$# co77$#& "$o "#$o% o o *%&* # * !*%" # ! o $,*, o $% # * D*c ** & "* $7!o&*, 3!o% # * ,$ *c#o & o>c* & *7! o **& o o# *

o>c$" & o !* &o%& # * *$% *&!o%&$ * o # * o *%&* $# o3#! * 3,$c* #o # * c$ $ $" $ $#$*& " $&$%+ o7 # * c $7$%" o *%&*.

T3!" K . CA8;5 SCRA 9H (2005)

CANNOT LEK ON PERSONAL PRIKATE PROPERTIES OF ANA ENT< T3!" " co !o "#* "+*%# ,$, %o# 3%,* #"?* #o!* &o%" +3" "%#** # * !" 7*%# o # * co !o "#$o% &$%,* #*,%*&&. $& !* &o%" ! o!* #$*& c"%%o# * * $*, $% " oo # * co !o "#$o% & c *,$#o &. T * & " o% ,o &o *%*4! *&& $!3 "#*,.

c) C$ $ L$" $ $# (To #&)*%* " R3 *<

PNB . CA9 SCRA 29 (1H; )

A co !o "#$o% $& c$ $ $" * $% # * &"7* 7"%%* "& %"#3 "!* &o%& o #o #& o *%* * "% o>c* o "+*%# co77$#& "#o #$o3& "c#.

E4c*!#$o% #o # * *%* " R3 *<

S*co&" . *$ & o F "%c$&co899 SCRA 2;9 (2008)

P *&$,*%# $& %o# &o $," $ $" * o # * @3"&$-,* $c# * * # * *$& %o + o3%, #o 3$ !$* c$%+ o # * co !o "#* *$ 3% *&& # * *"& # * ! oo o "3,. T * P $%c$! * o ! *&37!#$o% o

%*+ $+*%c* & " "!! #o # * co !o "#$o% 3# %o# "+"$% # *P *&$,*%# ,$ *c#o & o>c* & o $#& *7! o **&.

P o . S* $c*& I%c. . CA611 SCRA 2 2 (2010)

Doc# $%* o Co !o "#* N*+ $+*%c* o Co !o "#* R*&!o%&$ $ $# <• R*"&o%" * c" * o &" * "%, ",*@3"#* "c$ $#$*& "%,

*@3$!7*%#:• S* *c#$o% "%, *#*%#$o% o co7!*#*%# ! &$c$"%&:• O * &**$%+ o &3!* $&$o% $# $% $#& " &:• R3 *& "%, !o $c$*& $7! *7*%#*, # "# *%&3 * @3" $#

c" *.

,) Mo " ,"7"+*&*%* " R3 *<

ABS-CBN Co !. K. CA(961 P $ . 8HH: 1HHH)

Mo " ,"7"+*& c"%%o# * + "%#*, $% " o o " co !o "#$o%. I# $,*&$+%*, #o co7!*%&"#* o "c#3" $% 3 &3 * *,. Fo *co *o co !o "#$o% " c *" "%, co% $%c$%+ ! oo, o 7" $c* o "

"$# "7o3%#$%+ #o 3% 3 *% $c 7*%# & " * ! o *% (A21: CC)

E4c*!#$o% #o # * *%* " R3 *< " ,$%* D" $*& . CA

( R 12 066: 6/1H/2000)

T $& Co3 # 3 *, #o " " , 7o " ,"7"+*& #o # * co !o "#$o%o&* *!3#"#$o% "& **% ,"7"+*, "%, *&7$ c *, "%, #o

co7!*%&"#* o "c#3" $% 3 &3 * *, "%, %o# #o *% $c &co !o "#$o%.

C " *#. " . BPI( R 1;282 No . 200 )

W $ * # * Co3 # 7" *4c*!#$o% + "%# 7o " ,"7"+*& #oco !o "#$o%& $# $& %o# "3#o7"#$c" + "%#*,. P oo o *4$*o "c#3" $% 3 73 * ! o *%.

M"7 3 "o L37 * . PNB190 P $ . 966 (1H6 )

BASIS OF MORAL DAMA ES< P &$c" 7*%#" o 7&3 * $%+&. I co !o "#$o% & *!3#"#$o% & " * *&7$ c *c"% " &o * " "&$& o 7o " ,"7"+*&.

P!. . M"%* o .R 6 9- 5 (1HH9)

No 7o " ,"7"+*& c"% * c "$7*, # * co%+ *+"#$o% *c"3&*$# $& o% *% " 3 $,$c" !* &o% " $%+ " +oo, *!3#"#*4!* $*%c*& &oc$" 37$ $"#$o%. *$ & " &o c"%%o# c "$7 *c# * "$ *, #o & o "&$& * $%c$%+ 7o " ,"7"+*& #o

3$'" " " ,*, #o # *7.E4c*!#$o% #o # * E4c*!#$o% #o # * *%* " R3 *<

F$ $!$%"& B o",c"$%+ N*# o ? . AMEC-BCCM( R 181HH8 "%. 1; 2005)

A 3 $,$c" !* &o% 7" co7! "$% o $ * o ,* "7"#$o% "%, c "$o 7o " ,"7"+*& (A #. 221H.;:CC). o * * co !o "#$o%

c"%%o# c "$7 7o " ,"7"+*& o% # * + o3%, # "# $# "&*&7$ c *, *% co7! "$%#& * * "$ *,. To 3 * o# * $&* & "

,* *"# # * $+ # o * * !* &o% #o *4! *&& # *$ + $* "*% 3% 3 *% $c *,.

B. C *"#*, O!* "#$o% o L" T * Co%+ *&& & " %o# *4c*!# +*%* " " ! o $,* o

o 7"#$o% o +"%$ "#$o% o *+3 "#$o% o ! $ "#* co !o "o * %7*%#-o %*, o co%# o *, co !o "#$o%& 7" * c *"#*, o

*" $& *, &!*c$" c " #* & $% # * $%#* * o # * co+oo, "%, # * $%#* * o # * co77o% +oo, "%, &3 *c# #o # *#* o *co%o7$c $" $ $# (A #. II S*c. 16 Co%$#3#$o%).

• R"#$o< No 7o * &!*c$" c " #* & # "# 7" * &3 *c# #" 3&* $%co !o "#o & o ! $ "#* co !o "#$o%&.

PRIKATECORP

PUBLICCORP

OCC .I% 37*%#"

S#"#*co%# oo% *%*4* c$&$%+!o $c*!o *

I%co !o "#

S3 *c# #o+o * %7*%#

$&$#"#$o%"%, co%# o

I%co !o "#$o% $# o3#co%&*%# o

A +o * %7*%#-o %*,co%# o *,co !o "#$o% o$% 37*%#" $## "# co%,3c#&

o#co77* c$"

M" o 7" %o* **, $

3 $,$c"!* &o%" $#!o * &"3#o%o7 .

.E. S. T$


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* co%&*%# o 7*7 * &

oc" $# "%, %o%co77* c$""c#$ $#$*&

B" "%+" &73%$c$!" $#$*& !o $#$c"&3 ,.

SIS LRTAPA CORL"%, "%? DBP.

MIAA (%o P)PDIC

L" o%P $ "#*

Co !o "#$o% "!! $*&

S!*c$"" &/c " #*

&: "%, Loc"o * %7*%#Co,*

S!*c$" ""%, +*%* "

" (Co !o)P oo o *co%o7$c

$" $ $# / $&$ $ $# (&3 *c# #o

"%%3" * $* )

P o $,*, " .

SUI ENERIS B PRESCRIPTIONC *"#*, &!*c$" c " #* &.A #. II S*c. 16 o # *Co%$#3#$o% ! o $ $#& ! $ "#*co !o "#$o% &3$ +*%* $&*4c*!# +o * %7*%#-o %*, oco%# o *, co !o "#$o%& $% # *$%#* * o co77o% +oo, "%,# * c *"#$o% 7**#& # * #* o *co%o7$c $" $ $# .

Ro7"% C"# o $c C 3 c (*%#$ **$%+) = &$%c* #$7*

$77*7o $"

. Co !o "#$o% So * $c " *co% * *, " .

M ". I%# A$ !o # . CA.R. 155650: ;/20/2006

OCC . OK T INSTRUMENTALIT < MIAA "& %o c"!$#" oc?&,$ $,*, $%#o & " *& oc? o ,* &/7*7 * & %o o#$%+ & " *&. I#$& 7* * " !3 $c 3#$ $# o +"%$ *, #o o!* "#* "% $%#* %"#$o%""%, ,o7*$c "$ !o # o !3 $c 3&*. OCC 73 * o +"%$ *, "&" oc? o %o%-oc? co !o "#$o% $ * " +o * %7*%#$% 37*%#" $# $c 7" * **, $# co !o "#* !o * & #o!* o 7 $#& +o * %7*%#" 3%c#$o%& $& %*$# * " oc? %o %o%-oc? co !o "#$o%. S$%c* $# $& " +o * %7*%#" $% 37*%#" $# $#$& *4*7!#*, o7 #"4*& **& o c " +*& *4c*!# o * # * "%,&"%, 3$ ,$%+& # "# " * ! $ "#* o %*,.

Bo Sco3#& o # * P $ . . Co77$&&$o% o% A3,$#.R. 1;;191: 3%* ; 2011

E $,*%# # * BSP $c "& c *"#*, " &!*c$" " #o &* * "!3 $c !3 !o&* $% !3 &3$# o " co%$#3#$o%" 7"%,"#* co7*&

$# $% # * c "&& o !3 $c co !o "#$o%& ,*'%*, !" "+ "! 2A #$c * 88 o # * C$ $ Co,*.

C. R$+ # o S3cc*&&$o% = R"#$o%" *< Co !o "#$o% *4$& * *% $ $#&7*7 * & &3 &*@3*%# c "%+*. I% !" #%* & $!& # * &"7*,$&&o *& #o+*# * $# # * ,$&&o 3#$o% o $#& 7*7 * &. I% &o *! o! $*#o & $! # * * $& %o &3cc*&&$o% *c"3&* $# "& %o 3 $,$c"!* &o%" $# . D. Po * &INCIDENTAL POWERS TO T E ENERAL POWER

• +$ *% #o # * co !o "#$o% # * 7* * "c# # "# $# $& "co !o "#$o%

Sec. 36. Corporate powers and capacity. - E * co !o "#$o%$%co !o "#*, 3%,* # $& Co,* "& # * !o * "%, c"!"c$# <

1. To &3* "%, * &3*, $% $#& co !o "#* %"7*:2. O &3cc*&&$o% $#& co !o "#* %"7* o # * !* $o, o #$7*"#*, $% # * " #$c *& o $%co !o "#$o% "%, # * c* #$'c"#* o $%co !o "#$o%:9. To ",o!# "%, 3&* " co !o "#* &*" :8. To "7*%, $#& " #$c *& o $%co !o "#$o% $% "cco ,"%c* $## * ! o $&$o%& o # $& Co,*:5. To ",o!# - " & %o# co%# " #o " 7o " & o !3 $c!o $c "%, #o "7*%, o *!*" # * &"7* $% "cco ,"%c* $## $& Co,*:6. I% c"&* o oc? co !o "#$o%& #o $&&3* o &* oc?& #o&3 &c $ * & "%, #o &* oc?& #o &3 &c $ * & "%, #o &*# *"&3 oc?& $% "cco ,"%c* $# # * ! o $&$o%& o # $&

Co,*: "%, #o ",7$# 7*7 * & #o # * co !o "#$o% $ $# * "%o%-oc? co !o "#$o%:;. To !3 c "&* *c*$ * #"?* o + "%# o , co% * &

*"&* ! *,+* 7o #+"+* "%, o# * $&* ,*" $# &3c *""%, !* &o%" ! o!* # $%c 3,$%+ &*c3 $#$*& "%, o%,&o# * co !o "#$o%& "& # * # "%&"c#$o% o # * " 3 3o # * co !o "#$o% 7" *"&o%" "%, %*c*&&" $ *@&3 *c# #o # * $7$#"#$o%& ! *&c $ *, " "%, Co%$#3#$o%:

. To *%#* $%#o 7* +* o co%&o $,"#$o% $# oco !o "#$o%& "& ! o $,*, $% # $& Co,*:H. To 7"?* *"&o%" * ,o%"#$o%& $%c 3,$%+ # o&* o!3 $c * " * o o o&!$#" c " $#" * c3 #3 " &cc$ $c o &$7$ " !3 !o&*&< P o $,*, T "# %o co !o "#,o7*$c o o *$+% & " +$ * ,o%"#$o%& $% "$, o!o $#$c" !" # o c"%,$,"#* o o !3 !o&*& o !" #$&!o $#$c" "c#$ $# :10. To *" $& !*%&$o% *#$ *7*%# "%, o# * ! "%&

*%*'# o $#& ,$ *c#o & # 3**& o>c* & "%, *7! o **&: "11. To *4* c$&* &3c o# * !o * & "& 7" * *&&*%#$" o%*c*&&" #o c" o3# $#& !3 !o&* o !3 !o&*& "& "#*# * " #$c *& o $%co !o "#$o%.

SPECIFIC POWERSSec. 37. Power to extend or shorten corporate term. -! $ "#* co !o "#$o% 7" *4#*%, o & o #*% $#& #* 7 "& "#*, # * " #$c *& o $%co !o "#$o% *% "!! o *, " 7" o $# o#* o# * o" , o ,$ *c#o & o # 3**& "%, "#$'*, "# " 7**#$%+ # * oc? o ,* & *! *&*%#$%+ "# *" # o-# $ ,& (2/9) oo3#"%,$%+ c"!$#" oc? o "# *" # o-# $ ,& (2/9) o #7*7 * & $% c"&* o %o%-oc? co !o "#$o%&. W $##*% %o#$c* o! o!o&*, "c#$o% "%, o # * #$7* "%, ! "c* o # * 7**#$%+ & "

* ",, *&&*, #o *"c oc? o ,* o 7*7 * "# $& ! "c* o *&$,*%c* "& & o % o% # * oo?& o # * co !o "#$o% "

,*!o&$#*, #o # * ",, *&&** $% # * !o o>c* $# !o"+*! *!"$, o &* *, !* &o%" < P o $,*, T "# $% c"&* *4#*%&$o% o co !o "#* #* 7 "% ,$&&*%#$%+ oc? o ,**4* c$&* $& "!! "$&" $+ # 3%,* # * co%,$#$o%& ! o $,*, $% co,*. (%)Sec. 38. Power to increase or decrease capital stock;incur, create or increase bonded indebtedness. - Nco !o "#$o% & " $%c *"&* o ,*c *"&* $#& c"!$#" oc? o $

c *"#* o $%c *"&* "% o%,*, $%,* #*,%*&& 3% *&& "!! o *, " 7" o $# o#* o # * o" , o ,$ *c#o & "%, "# " oc? o ,*7**#$%+ ,3 c" *, o # * !3 !o&* # o-# $ ,& (2/9) o #o3#"%,$%+ c"!$#" oc? & " " o # * $%c *"&* o ,$7$%o # * c"!$#" oc? o # * $%c3 $%+ c *"#$%+ o $%c *"&"% o%,*, $%,* #*,%*&&. W $##*% %o#$c* o # * ! o!o&$%c *"&* o ,$7$%3#$o% o # * c"!$#" oc? o o # * $%c3c *"#$%+ o $%c *"&$%+ o "% o%,*, $%,* #*,%*&& "%, o#$7* "%, ! "c* o # * oc? o ,* & 7**#$%+ "# $c #! o!o&*, $%c *"&* o ,$7$%3#$o% o # * c"!$#" oc? o #$%c3 $%+ o $%c *"&$%+ o "% o%,*, $%,* #*,%*&& $& co%&$,* *, 73 * ",, *&&*, #o *"c oc? o ,* "# $& ! "c*o *&$,*%c* "& & o % o% # * oo?& o # * co !o "#$o% ",*!o&$#*, #o # * ",, *&&** $% # * !o o>c* $# !o"+*! *!"$, o &* *, !* &o%" .A c* #$'c"#* $% ,3! $c"#* 73 * &$+%*, " 7" o $# o #,$ *c#o & o # * co !o "#$o% "%, co3%#* &$+%*, # * c "$ 7"%, # * &*c *#" o # * oc? o ,* & 7**#$%+ &*##$%+ o #

(1) T "# # * *@3$ *7*%#& o # $& &*c#$o% " * co7! $*, $# :(2) T * "7o3%# o # * $%c *"&* o ,$7$%3#$o% o #c"!$#" oc?:(9) I "% $%c *"&* o # * c"!$#" oc? # * "7o3%#c"!$#" oc? o %37 * o & " *& o %o-!" # * *o "c#3" &3 &c $ *, # * %"7*& %"#$o%""%, *&$,*%c*& o # * !* &o%& &3 &c $ $%+ # * "7o c"!$#" oc? o %37 * o %o-!" oc? &3 &c $

*"c "%, # * "7o3%# !"$, *"c o% $&&3 &c $!#$o% $% c"& o ! o!* # o # * "7o3%c"!$#" oc? o %37 * o & " *& o %o-!" " o##*, #o *"c oc?- o ,* $ &3c $%c *"&* $& o!3 !o&* o 7"?$%+ * *c#$ * oc? ,$ $,*%, # * * o"3# o $ *,:

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(8) A% o%,*, $%,* #*,%*&& #o * $%c3 *, c *"#*, o$%c *"&*,:(5) T * "c#3" $%,* #*,%*&& o # * co !o "#$o% o% # *," o # * 7**#$%+:(6) T * "7o3%# o oc? *! *&*%#*, "# # * 7**#$%+:"%,(;) T * o#* "3# o $ $%+ # * $%c *"&* o ,$7$%3#$o% o # * c"!$#" oc? o # * $%c3 $%+ c *"#$%+ o $%c *"&$%+o "% o%,*, $%,* #*,%*&&.

A% $%c *"&* o ,*c *"&* $% # * c"!$#" oc? o # * $%c3 $%+c *"#$%+ o $%c *"&$%+ o "% o%,*, $%,* #*,%*&& & " *@3$ *! $o "!! o " o # * S*c3 $#$*& "%, E4c "%+* Co77$&&$o%.O%* o # * ,3! $c"#* c* #$'c"#*& & " * ?*!# o% ' * $% # * o>c*o # * co !o "#$o% "%, # * o# * & " * ' *, $# # * S*c3 $#$*&"%, E4c "%+* Co77$&&$o% "%, "##"c *, #o # * o $+$%" " #$c *&o $%co !o "#$o%. F o7 "%, " #* "!! o " # * S*c3 $#$*& "%,E4c "%+* Co77$&&$o% "%, # * $&&3"%c* # * Co77$&&$o% o $#& c* #$'c"#* o ' $%+ # * c"!$#" oc? & " "%, $%c *"&*, o,*c *"&*, "%, # * $%c3 $%+ c *"#$%+ o $%c *"&$%+ o "%

o%,*, $%,* #*,%*&& "3# o $ *, "& # * c* #$'c"#* o ' $%+ 7",*c " *< P o $,*, T "# # * S*c3 $#$*& "%, E4c "%+* Co77$&&$o%& " %o# "cc*!# o ' $%+ "% c* #$'c"#* o $%c *"&* o c"!$#"oc? 3% *&& "cco7!"%$*, # * & o % "#*7*%# o # *# *"&3 * o # * co !o "#$o% " 3 o ,$%+ o>c* "# # * #$7* o # * ' $%+ o # * c* #$'c"#* & o $%+ # "# "# *" # *%# -' *(25Q) !* c*%# o &3c $%c *"&*, c"!$#" oc? "& **%&3 &c $ *, "%, # "# "# *" # *%# -' * (25Q) !* c*%# o # *"7o3%# &3 &c $ *, "& **% !"$, *$# * $% "c#3" c"& #o # *co !o "#$o% o # "# # * * "& **% # "%& * *, #o # * co !o "#$o%! o!* # # * " 3"#$o% o $c $& *@3" #o # *%# -' * (25Q)!* c*%# o # * &3 &c $!#$o%< P o $,*, 3 # * T "# %o ,*c *"&*o # * c"!$#" oc? & " * "!! o *, # * Co77$&&$o% $ $#&* *c# & " ! * 3,$c* # * $+ #& o co !o "#* c *,$#o &.No%-oc? co !o "#$o%& 7" $%c3 o c *"#* o%,*,$%,* #*,%*&& o $%c *"&* # * &"7* $# # * "!! o " "7" o $# o#* o # * o" , o # 3**& "%, o "# *" # o-# $ ,&(2/9) o # * 7*7 * & $% " 7**#$%+ ,3 c" *, o # * !3 !o&*.Bo%,& $&&3*, " co !o "#$o% & " * *+$* *, $# # *S*c3 $#$*& "%, E4c "%+* Co77$&&$o% $c & " " * # *"3# o $# #o ,*#* 7$%* # * &3>c$*%c o # * #* 7& # * *o . (1;")Sec. 39. Power to deny pre-emptive right. - A oc? o ,* &o " oc? co !o "#$o% & " *% o ! *-*7!#$ * $+ # #o &3 &c $ *

#o " $&&3*& o ,$&!o&$#$o% o & " *& o "% c "&& $% ! o!o #$o% #o# *$ *&!*c#$ * & " * o ,$%+& 3% *&& &3c $+ # $& ,*%$*, # *" #$c *& o $%co !o "#$o% o "% "7*%,7*%# # * *#o< P o $,*,

T "# &3c ! *-*7!#$ * $+ # & " %o# *4#*%, #o & " *& #o *$&&3*, $% co7! $"%c* $# " & *@3$ $%+ oc? o * $%+& o7$%$737 oc? o %* & $! # * !3 $c: o #o & " *& #o *$&&3*, $% +oo, "$# $# # * "!! o " o # * oc? o ,* &

*! *&*%#$%+ # o-# $ ,& (2/9) o # * o3#"%,$%+ c"!$#" oc? $%*4c "%+* o ! o!* # %**,*, o co !o "#* !3 !o&*& o $%!" 7*%# o " ! * $o3& co%# "c#*, ,* #.Sec. 40. Sale or other disposition of assets. - S3 *c# #o # *! o $&$o%& o *4$$%+ " & o% $ *+" co7 $%"#$o%& "%,7o%o!o $*& " co !o "#$o% 7" " 7" o $# o#* o $#& o" , o ,$ *c#o & o # 3**& &* *"&* *4c "%+* 7o #+"+* ! *,+* oo# * $&* ,$&!o&* o " o &3 "%#$" " o $#& ! o!* # "%,"&&*#& $%c 3,$%+ $#& +oo, $ 3!o% &3c #* 7& "%, co%,$#$o%&"%, o &3c co%&$,* "#$o% $c 7" * 7o%* oc?& o%,&o o# * $% 37*%#& o # * !" 7*%# o 7o%* o o# * ! o!* #o co%&$,* "#$o% "& $#& o" , o ,$ *c#o & o # 3**& 7" ,**7*4!*,$*%# *% "3# o $ *, # * o#* o # * oc? o ,* &

*! *&*%#$%+ "# *" # o-# $ ,& (2/9) o # * o3#"%,$%+ c"!$#"oc? o $% c"&* o %o%-oc? co !o "#$o% # * o#* o "# *"#o # o-# $ ,& (2/9) o # * 7*7 * & $% " oc? o ,* & o7*7 * & 7**#$%+ ,3 c" *, o # * !3 !o&*. W $##*% %o#$c* o # * ! o!o&*, "c#$o% "%, o # * #$7* "%, ! "c* o # * 7**#$%+& " * ",, *&&*, #o *"c oc? o ,* o 7*7 * "# $& ! "c*o *&$,*%c* "& & o % o% # * oo?& o # * co !o "#$o% "%,,*!o&$#*, #o # * ",, *&&** $% # * !o o>c* $# !o"+*! *!"$, o &* *, !* &o%" < P o $,*, T "# "% ,$&&*%#$%+oc? o ,* 7" *4* c$&* $& "!! "$&" $+ # 3%,* # * co%,$#$o%&! o $,*, $% # $& Co,*.A &" * o o# * ,$&!o&$#$o% & " * ,**7*, #o co *&3 "%#$" " # * co !o "#* ! o!* # "%, "&&*#& $ # * * # *

co !o "#$o% o3 , * *%,* *, $%c"!" * o co%#$%3$%+ #3&$%*&& o "cco7! $& $%+ # * !3 !o&* o $c $#

$%co !o "#*,.A #* &3c "3# o $ "#$o% o "!! o " # * oc? o ,* &7*7 * & # * o" , o ,$ *c#o & o # 3**& 7" %* * # * *$% $#& ,$&c *#$o% " "%,o% &3c &" * *"&* *4c "%+* 7o! *,+* o o# * ,$&!o&$#$o% o ! o!* # "%, "&&*#& &3 *c# #o

$+ #& o # $ , !" #$*& 3%,* "% co%# "c# * "#$%+ #$# o3# 3 # * "c#$o% o "!! o " # * oc? o ,* &

7*7 * &.No# $%+ $% # $& &*c#$o% $& $%#*%,*, #o * $c# # * !o *co !o "#$o% $# o3# # * "3# o $ "#$o% # * oc? o ,*7*7 * & #o &* *"&* *4c "%+* 7o #+"+* ! *,+* o# * $&* ,$&!o&* o "% o $#& ! o!* # "%, "&&*#& $ # * &"%*c*&&" $% # * 3&3" "%, *+3 " co3 &* o 3&$%*&& oco !o "#$o% o $ # * ! oc**,& o # * &" * o o# * ,$&!o&$#$o&3c ! o!* # "%, "&&*#& * "!! o! $"#*, o # * co%,3c# o $#&

*7"$%$%+ 3&$%*&&.I% %o%-oc? co !o "#$o%& * * # * * " * %o 7*7 * & $

o#$%+ $+ #& # * o#* o "# *" " 7" o $# o # * # 3o>c* $ * &3>c$*%# "3# o $ "#$o% o # * co !o "#$o% #o *%$%#o "% # "%&"c#$o% "3# o $ *, # $& &*c#$o%.Sec. 41. Power to ac uire own shares. - A oc? co !o "#$& " " * # * !o * #o !3 c "&* o "c@3$ * $#& o % & " *&

*+$#$7"#* co !o "#* !3 !o&* o !3 !o&*& $%c 3,$%+ 3# %$7$#*, #o # * o o $%+ c"&*&< P o $,*, T "# # * co !o "#$o%

3% * $c#*, *#"$%*, *" %$%+& $% $#& oo?& #o co * # * &* !3 c "&*, o "c@3$ *,<

1. To * $7$%"#* "c#$o%" & " *& " $&$%+ o3# o oc? ,$ $,*%2. To co *c# o co7! o7$&* "% $%,* #*,%*&& #o # * co !o "#$o%

" $&$%+ o3# o 3%!"$, &3 &c $!#$o% $% " ,* $%@3*%c &" *!3 c "&* ,* $%@3*%# & " *& &o , ,3 $%+ &"$, &" *: "%,

9. To !" ,$&&*%#$%+ o $# , " $%+ oc? o ,* & *%#$# *!" 7*%# o # *$ & " *& 3%,* # * ! o $&$o%& o # $& Co,*.

Sec. 42. Power to invest corporate funds in another corporation or business or for any other purpose. - S3 *#o # * ! o $&$o%& o # $& Co,* " ! $ "#* co !o "#$o% 7" $%$#& 3%,& $% "% o# * co !o "#$o% o 3&$%*&& o o "% o# * # "% # * ! $7" !3 !o&* o $c $# "& o +"%$ *, *%"!! o *, " 7" o $# o # * o" , o ,$ *c#o & o # 3**& "%

"#$'*, # * oc? o ,* & *! *&*%#$%+ "# *" # o-# $ ,& (o # * o3#"%,$%+ c"!$#" oc? o "# *" # o # $ ,& (2/9

# * 7*7 * & $% # * c"&* o %o%-oc? co !o "#$o%& "#oc? o ,* & o 7*7 * & 7**#$%+ ,3 c" *, o # * !3 !o&W $##*% %o#$c* o # * ! o!o&*, $% **%# "%, # * #$7* "%! "c* o # * 7**#$%+ & " * ",, *&&*, #o *"c oc? o ,* o7*7 * "# $& ! "c* o *&$,*%c* "& & o % o% # * oo?& o #co !o "#$o% "%, ,*!o&$#*, #o # * ",, *&&** $% # * !o o>c*

$# !o"+* ! *!"$, o &* *, !* &o%" < P o $,*, T "# "%,$&&*%#$%+ oc? o ,* & " " * "!! "$&" $+ # "& ! o $,# $& Co,*< P o $,*, o * * T "# * * # * $% **%# #co !o "#$o% $& *"&o%" %*c*&&" #o "cco7! $& $#& ! $!3 !o&* "& "#*, $% # * " #$c *& o $%co !o "#$o% # * "!! o "# * oc? o ,* & o 7*7 * & & " %o# * %*c*&&" .Sec. 43. Power to declare dividends. - T * o" , o ,$ *c#oo " oc? co !o "#$o% 7" ,*c " * ,$ $,*%,& o3# o # *3% * $c#*, *#"$%*, *" %$%+& $c & " * !" " * $% c"&! o!* # o $% oc? #o " oc? o ,* & o% # * "&o3#"%,$%+ oc? * , # *7< P o $,*, T "# "% c"&,$ $,*%,& ,3* o% ,* $%@3*%# oc? & " ' * "!! $*, #o #3%!"$, " "%c* o% # * &3 &c $!#$o% ! 3& co& "%, *4!*%&

$ * oc? ,$ $,*%,& & " * $# * , o7 # * ,* $%@oc? o ,* 3%#$ $& 3%!"$, &3 &c $!#$o% $& 3 !"$,< P

3 # * T "# %o oc? ,$ $,*%, & " * $&&3*, $# o3#"!! o " o oc? o ,* & *! *&*%#$%+ %o# *&& # "% # o-#(2/9) o # * o3#"%,$%+ c"!$#" oc? "# " *+3 " o &!*c$7**#$%+ ,3 c" *, o # * !3 !o&*.S#oc? co !o "#$o%& " * ! o $ $#*, o7 *#"$%$%+ &3 ! 3& !$% *4c*&& o o%* 3%, *, (100Q) !* c*%# o # *$ !"$,-$% c"!$#"oc? *4c*!#< (1) *% 3$'*, ,*'%$#* co !o "#* *4!"%&$o%! o *c#& o ! o+ "7& "!! o *, # * o" , o ,$ *c#o &: o (2)

*% # * co !o "#$o% $& ! o $ $#*, 3%,* "% o"% "+ **7*%$# "% '%"%c$" $%$#3#$o% o c *,$#o *# * oc" o

o7 ,*c " $%+ ,$ $,*%,& $# o3# $#&/ $& co%&*%# "%, co%&*%# "& %o# *# **% &*c3 *,: o (9) *% $# c"% * c *"

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& o % # "# &3c *#*%#$o% $& %*c*&&" 3%,* &!*c$"c$ c37"%c*& o #"$%$%+ $% # * co !o "#$o% &3c "& *% # * *$& %**, o &!*c$" *&* * o ! o " * co%#$%+*%c$*&.Sec. 44. Power to enter into management contract. - Noco !o "#$o% & " co%c 3,* " 7"%"+*7*%# co%# "c# $# "%o# *co !o "#$o% 3% *&& &3c co%# "c# & " " * **% "!! o *, # * o" , o ,$ *c#o & "%, oc? o ,* & o %$%+ "# *" # *7" o $# o # * o3#"%,$%+ c"!$#" oc? o "# *" "7" o $# o # * 7*7 * & $% # * c"&* o " %o%-oc? co !o "#$o%o o# # * 7"%"+$%+ "%, # * 7"%"+*, co !o "#$o% "# "7**#$%+ ,3 c" *, o # * !3 !o&*< P o $,*, T "# (1) * * "oc? o ,* o oc? o ,* & *! *&*%#$%+ # * &"7* $%#* * o

o# # * 7"%"+$%+ "%, # * 7"%"+*, co !o "#$o%& o % oco%# o 7o * # "% o%*-# $ , (1/9) o # * #o#" o3#"%,$%+ c"!$#"oc? *%#$# *, #o o#* o # * 7"%"+$%+ co !o "#$o%: o (2) * *" 7" o $# o # * 7*7 * & o # * o" , o ,$ *c#o & o # *7"%"+$%+ co !o "#$o% " &o co%$#3#* " 7" o $# o # * 7*7 * &o # * o" , o ,$ *c#o & o # * 7"%"+*, co !o "#$o% # *% # *7"%"+*7*%# co%# "c# 73 * "!! o *, # * oc? o ,* & o # * 7"%"+*, co !o "#$o% o %$%+ "# *" # o-# $ ,& (2/9) o # *#o#" o3#"%,$%+ c"!$#" oc? *%#$# *, #o o#* o "# *"# o-# $ ,& (2/9) o # * 7*7 * & $% # * c"&* o " %o%-oc?co !o "#$o%. No 7"%"+*7*%# co%# "c# & " * *%#* *, $%#o o "!* $o, o%+* # "% ' * *" & o "% o%* #* 7.

T * ! o $&$o%& o # * %*4# ! *c*,$%+ !" "+ "! & " "!! #o"% co%# "c# * * " co !o "#$o% 3%,* #"?*& #o 7"%"+* oo!* "#* " o &3 "%#$" " o # * 3&$%*&& o "%o# *co !o "#$o% *# * &3c co%# "c#& " * c" *, &* $c* co%# "c#&o!* "#$%+ "+ **7*%#& o o# * $&*< P o $,*, o * * T "#&3c &* $c* co%# "c#& o o!* "#$%+ "+ **7*%#& $c * "#* #o# * *4! o "#$o% ,* * o!7*%# *4! o$#"#$o% o 3#$ $ "#$o% o %"#3 " *&o3 c*& 7" * *%#* *, $%#o o &3c !* $o,& "& 7"

* ! o $,*, # * !* #$%*%# " & o *+3 "#$o%&.Sec. 45. !ltra vires acts of corporations. - No co !o "#$o%3%,* # $& Co,* & " !o&&*&& o *4* c$&* "% co !o "#* !o * &*4c*!# # o&* co% * *, # $& Co,* o $#& " #$c *& o $%co !o "#$o% "%, *4c*!# &3c "& " * %*c*&&" o $%c$,*%#" #o# * *4* c$&* o # * !o * & &o co% * *,.

• Po * & + "%#*, +*%* " " = $%# " $ *& "c#&o I7! $*, !o * &

M$%$%+ co773%$# = *" $& 7*%# o !oo>c* $& %o# 3 # " $ *&. I# $& "% $7! $*, !o *%*c*&&" o # * *4* c$&* o # * *4! *&&!o * & + "%#*, " .

T "%&!o # &* $c*& = $%c 3,*& $7! $*, !o * &o *!"$ &* $c*&.

• A #* %"#$ *< *%* " . S!*c$'co S!*c$'c = "%, = #" *%# o ",& 7" * $%# " $ *&.

II. COMPARISONS/DISTINCTIONS

CORPORATION "& " &*!" "#* P $# & " * o ,* .

o$%# K*%#3 * = o *$+% "%, oc" & " * o ,* +$ *% # * $+ # o ' * 3&" . Fo *$+% & " * o ,* & $ * 7o * # "% 80Q $ oc"&* & #o o *$+%.

S377$# o ,$%+& . CA

S $! " , ! o!* # o # * co !o "#$o%. R3 $%+< R$+ # o ' * 3&"$& &*!" "#* "%, ,$$%c# *# **% # * & " * o ,* "%, # *co !o "#$o%. T * * *c# o # $& $& # "# # * co !o "#$o% c"%%o# o ,# * ! o!* # 3# # * o *$+% & " * o ,* & c"% !3 c "&*.

W *% " & " * o ,* "c#*, * o%, $& "3# o $# $# & " %o# *$%,$%+ #o # * co !o "#$o% 3% *&& *% " Bo" , o R*&o 3#$o%

" o & "% $%,$ $,3" #o &* o ,$&!o&* # * ! o!* # "%, # * "##*,$, %o# *&c$%, # * &" *. o * * $ # * o 7* "c#*, $# " $,"3# o $# # * "c#& & " * $%,$%+ #o # * co !o "#$o%.

. DOCTRINE OF CORPORATE ENTIT

C" "# . CA

T * * $& %o "3, *% 7* * o %* & $! o oc?& ,o*& %o# "&&!* &o%" $" $ $# .

" "+ * . * 7"%$" B * $%+ Co.58 N.W. 115 (1 H9)

To " o &*#-o !" #$*& "+"$% c "$7& o "%o# * $co !o "#$o% o3 , #"%#"7o3%# #o #o#" $+%o $%+ # * ,oc# $%* # "# " co !o "#$o% $& "% *%#$# &*!" "#* "%, ,$

o7 # * o, o $#& oc? o ,* &.

M"+&" &" -L" ",o . CA.(1H H) 1 0 SCRA 266

Co !o "#* ! o!* # & " %o# * # *"#*, "& !* &o%" ! o!* #$*&oc? o ,* &. T "%& * & " * *co ,*, $% # * oo?&co !o "#$o% #o " *c# # $ , !* &o%&. W $ * " & " * o &

*! *&*%#& "% " $@3o# $%#* * $# ,o*& %o# * # * o %*$# "% *+" $+ # o #$# *.

S"% 3"% S# 3c#3 " . CA(1HH ) 2H6 SCRA 691

No# " c o&* co !o "#$o%. A# *" 2/9 o#$%+ oc? o %*, "%o# * !* &o% " $%+ %o *@3$&$#*&. HH.HHQ $& %o# " " $*%#$# *7*%# o "3#o7"#$c c "$7 3!o% ,$ $ 3#$o% $@3$,"#$o,$&&o 3#$o%.

T "7"# M* c"%#$ * . CA(1HH8) 29 SCRA 18

Fo3 $%"%c*& o oc? o ,* & & " * &o $," $" $ $#co !o "#$o%&<1. * "&&*%#& #o

". " !"#*%# 3% " 3 "c# o # * co !o "#$o% o. T * * "& ", "$# o + o&& %*+ $+*%c* $% ,$ *c#$%

" "$ & oc. Fo co% $c# o $%#* * *&3 #$%+ $% ,"7"+*& #

co !o "#$o% $#& oc? o ,* & o o# * !* &o%& o2. * co%&*%#& #o # * $&&3"%c* o "#* *, oc?& o

" $%+ ?%o *,+* # * *o ,o*& %o# o # $# ' * $# co !o "#* &*c *#" $& $##*% o *c#$o% # * *#o o

9. * "+ **& #o o , $7&* !* &o%" "%, &o $," $ $# # * co !o "#$o% o8. * $& 7",* " &!*c$'c ! o $&$o% o " #o !* &o%"

"%& * o $& co !o "#* "c#$o%.

P" " I%c. . C " *(1H 9) 128 SCRA 680

No ! *&*%c* o "3, o ", "$# * *% $ # * 7$"?*%*&c$%,*, # * co%# "c# #o &* *4# " 3,$c$" "%, ", &o , $# #

# $ , !* &o%.

S#oc? o ,* & o 3"% o% . R*+$* o D**,&

D3 $%+ $@3$,"#$o% co% * "%c* o "&&*#& (#"4*&) #o oc?o # * co !o "#$o% $& *@3$ *, * o * # * ,$ $ 3#$o% o"&&*#&. S#oc? o ,* & c"%%o# $77*,$"#* c "$7 co !o "#$o! o!* # "& $& o % "& # * &"7* c"%%o# " o$, # * $" $&c *7* 3!o% ,$&&o 3#$o%.

B. P$* c$%+ # * Co !o "#* K*$ <1) K$&- - $& $%,$ $,3" < Co !o "#$o% $& " 7* * "&&oc$"#$

$%,$ $,3" & #o $c !* &o%" $" $ $# 7" * "##"c *,.2) K$&- - $& co !o "#$o%< T o o 7o * co !o "#$o% $& co%&$,

"& o%*. T * co !o "#$o% ,o*& %o# o&* $#& c " "c#* "&co !o "#$o% "%, $# co%#$%3*& o% o *+" !3 !o&*&. W!$* c*, o% "!! $*& #o # * !" #$c3 " $%"%c*. I# o% $#& c " "c#* 3!o% ,$&&o 3#$o%.

9) W *% #o $% o?*". To *7*, "% $% 3$c* &3c "& " $o "#$o% o

$o "#$o% o co%# "c# $o "#$o% o " & " o$% 3$c* o &3cc*&&$o%" $+ #& *#c.

. U#7o c"3#$o% = # * * 73 * ! oo o *4$*%c*

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6/11


" o *7*%#$o%*, + o3%,&.

PIERCED<K$ " R* T "%&$# . F* *

(1H6 ) 25 SCRA 85

No# " *+$* *, oc? o ,* 3# * $,*%c* & o # "# # * "##* $&# * o%* $% " &o 3#* co%# o o * # * co !o "#$o%. K*$ $& !$* c*,.

M" * B ,+. . D" $,(1H58) H8 P $ . 9;6

W *% $# "& ,3 ! o *% # "# C" o $& # * &o * o %* o # *& " * o oc?. A%, *%,o &*7*%#& * * $% "%? $% # * %"7* o o# * $%co !o "#o & #o * $* * * o7 #"4.

C*"&* . CA(1H;H) H9 SCRA 8 9

T * o $+$%" $%co !o "#o & * * " $*%& $*%,& o # $ , !" #$*& $%* "#$o% o o%* #o "%o# * *&3 #$%+ $% o%* c o&* "7$

co !o "#$o%. T * ,oc# $%* o &*!" "#* *%#$# c"%%o# 3! o , *%# * &"7* $& 3&*, "& "% " #* *+o. D*! $ "#$o% o &3cc*&&$o%"

$+ #& "& "+"$% # * ! o&!*c#$ * ,$ $ 3#*& *% "# # $& #$7* $#7* * o ,& # * ! o!* # $% # 3.

S*co&" . *$ & o F "%c$&co(2008) 899 SCRA 2;9

DOA FOAF. C$ $ $" $ $# "! $*&.

Co%c*!# B3$ ,* & . NLRC(1HH6) 25; SCRA 18H

Do7$%$o% co%# o o * # * " "$ &.

C "!" o & . CIR(1H65) 65 SCRA 619

No *"? $% # * &3cc*&&$o% "%, co%#$%3$# o # * 3&$%*&&. A&&*#&* * 7* * #3 %*, o * #o # * *7* +$%+ co !o "#$o%. T *

!3 !o&* "& #o " o$, $" $ $#$*& o7 # * o 7* .

L" C"7!"%" Co ** F"c#o . "$&" "%(1H59) H9 P $ 160

P" *%#-&3 &$,$" * "#$o%& $!. T"% To%+ o %& $#.

P"7! o%" P "%#"#$o% . T$%+ $(2005) 850 SCRA 821

U&*, #o " o$, o $+"#$o% o !" 7*%# 3%,* " o " &.

3 . NLRC(1HH5) 285 SCRA 198

No# o% # * *#$ $%+ !" #%* & 3# " &o # * %* !" #%* & $! $#&* $c co%#$%3*, # * 3&$%*&& o # * o , ,$&&o *, o%* " *

$" * o # * ,* #& o # * ! *c*,$%+ !" #%* & $!.

NOT PIERCED<I%,o-P $ T*4#$ * M$ & . C" $c"

(1HH2) 205 SCRA 6H

U%$o% *! *&*%#"#$o%.

U7" $ . CA(1HH0) 1 H SCRA 52H

Fo *c o&3 * o ! $ "#* $%,$ $,3" & ! o!* # .

F$ P $ . I%# B"%?252 SCRA 25H

Fo 37-& o!!$%+.

C. P" *%#-S3 &$,$" R* "#$o%& $!<No !$* c$%+ o # * co !o "#* *$ . P $ $# o co%# "c#& c"%%o#!" *%# co !o "#$o% #o # * co%# "c# * * &3 &$,$" $& o33% *&& !$* c$%+ o co !o "#* *$ & " "!! "& "% *4c*!#$o%.

3#$ o . CTA(1H61) 1 SCRA 160

T * * $& %o "3,. B3# *$ "& !$* c*, *c"3&* # * co%# o !" *%# 7"?*& $# " , #o ,$&c* % "% &*!" "#* *%#$# *# **% ## o.

K. CLASSES OF CORPORATIONS UNDER T E CORP. CODE (S*c. 9; )

STOC NON-STOC T o *@3$&$#*& (C 3 F$ $!$%o)<C"!$#" oc? $%#o & " *& "%,"3# o $# #o ,$ $ 3#* # *&"7*.P o'#-*" %$%+.Bo" , o D$ *c#o &.

W "# $& oc?V = & " * o oc?& " * $%#"%+$ *: "%,7" * * $%c*, & " *c* #$'c"#*&V. I# $& # *$%c o"#* $%#* * o "oc? o ,* /7*7 * o *# * co !o "#$o% * * 3!o%,$&&o 3#$o% # * %*# "&&*#&& " * ,$ $ 3#*,"cco ,$%+ .

I%co7* $& %o%-,$ $ 3#" *.No# o +"%$ *, o ! o'#-*" %$%+ 3% *&& 7$%c$,*%#" #o $#& o!* "#$o%&C 3 F$ $!$%o.Bo" , o T 3**&.

C " $#" * * $+$o*,3c"#$o%" ! o *&&$o%c3 #3 " "#* %" $#&c$*%#$'c &oc$" c$ $c &*o &$7$ " !3 !o&*& $?* # "$%,3 "+ $c3 #3 " "%, c "7 * & o "% co7 $%"#$o%# * *o &3 *c# #o # * &!*c$! o $&$o%& o # $& T$# *.

S " *& o oc?

S " *c* #$'c"#*

R$+ # o *"c& " * o ,*

R*c*$ *,3!o%!" 7*%# o,*!o&$#

K" * o C 3 . K,". D* C" "75 5 SCRA 21 (200H)

No%-oc? "& # * $+ # #o #* 7$%"#* 7*7 * & $! "cco ,$%+ #S*c. H1 o T$# * o% No%-S#oc? Co !o "#$o%&. M*7 * & $! & "" * %o# #$# * #o oc?& "& ! o *% # * %o%- $" $ $# 7*7 * & $! ,3*&.

T * #* #o ,*#* 7$%* *# * o %o# "% *,3c"#$o%" $%$#3$& " oc? o %o%-oc? & " * &3 *c# #o ,$ * *%# "!! $c"#$

" &.• I # * co !o "#$o% $& oc?< A!! $c" * " $& # *

III: C . 1 o% S!*c$" Co !o "#$o%&. I%"!! $c" * T$o% S#oc? Co !o "#$o%&.

• I # * co !o "#$o% $& %o%-oc?< T$# * o% No%-S#$%"!! $c" * T$# * o% S#oc? Co !o "#$o%& & "&3!! *#o $ "!! $*,.

Co . o I%#. R* . . C 3 F$ $!$%o

5 SCRA 921 (1H62)

2. O# * c "&&*& o co !o "#$o%& 3%,* # * Co !o "#$o% Co,*<• CLOSE

o A " & " oc? co !o "#$o%. I&&3*, oc*4c 3&$ * o # *"&3 & " *& & " *

*co , %o# 7o * # "% " &!*c$'*, %37 * o !* &o%& %o# *4c**,$%+ 20.

o I&&3*, oc?& o " c "&&*& & " * &3o%* o 7o * &!*c$'*, * $c#$o%& o% # "%!* 7$##*, # * Co,*.

RI T OF FIRST REFUSAL (S*c. H ) =Flysher v. Botika Nolasco < * $o # "%& * c"%%o# * 7o * o%*# "% # * $+ # o # * oc? o ,* .

RI T OF FIRST PREEMPTIKE RI T

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REFUSALS#oc? o ,* &* &

$& & " *& $%co7! $"%c* $# A/I.S3c "& *% *o * & ' #o co-7*7 * & * o *o3#&$,* & o "&o# * $&* ! o $,*,.

Co !o "#$o% $& # * o%*$&&3$%+ # * & " *, #o

* &3 &c $ *, #o # * oc? o ,* &.

o

No# **, $# !3 $c $%#* *. P o $ $#$o% #o$ $% "% oc? *4c "%+* o 7"?* "% !3 $co * $%+ o $#& oc?& o "% c "&& (S*c. H6).

• SPECIALo E,3c"#$o%" * $+$o3& (co !o "#$o% &o * "%,

* $+$o3& &oc$*#$*&) (T$# * III)• FOREI N (S*c. 129)• OT ERS<

o SUBSIDIARW o o %*, = 7o * # "% 50Q o # *

o#$%+ oc?M" o $# o %*, = # o3+ o%* o 7o *$%#* 7*,$" $*& "%o# * co !o "#$o%(# *"#*, "& !" *%#)

o AFFILIATES$* co7!"%$*&O * " co%# o " !" *%#co !o "#$o%

o PARENT/ OLDINco%# o $%+/o %* & $!&3 "%#$" co%# o $%+ & " *&

o OINT KENTURE o$%*, ' # o co !o "#$o%&

o OPEN . CLOSEo LA

O# * # "% *cc *&$"$c" . E.+.* **7o& %" $*&

o RELI IOUSEcc *&$"$c" (&!$ $#3" !* &o%&*" $& *, $% 3 # * "%c* o * $+$o3&"%, !* !*# "#$o% o $+ #& o c 3 c )

o ELEEMOS NARC " $#" * !3 !o&*&

o CIKIL CORPB*%*'# o $#& 7*7 * &. P o'#-*" %$%+.

• o * %$%+ " &<o *%* " R3 *< S!*c$" T$# *&o S3!! *#o < T$# *& o o# * ! $%c$! *& * "#*,

# * *#o.

K. CREATION OF CORPORATION1. P o7o#$o%

- T $& $%c 3,*& "c#$ $#$*& ,o%* ! o7o#* o # *o3%,$%+ "%, o +"%$ $%+ o # * 3&$%*&& o *%#* ! $&* o

# * $&&3* . (S*c. 9.1. o S*c3 $#$*& R*+3 "#$o% Co,*)- P o7o#* V $& " !* &o% o "c#$%+ " o%* o $# o# * &

#"?*& $%$#$"#$ * $% o3%,$%+ "%, o +"%$ $%+ # * 3&$%*&&

o *%#* ! $&* o # * $&&3* "%, *c*$ *& co%&$,* "#$o%# * * o . (S*c. 9.10 Ibid )o A+*%# o # * $%co !o "#o & "%, %o# # *

co !o "#$o%.- I%c 3,*& ,$&co * $% *$+"#$o% "%, "&&*7 .- P o7o#$o% $& %o# " o 7" !" # o # * o +"%$ "#$o% o # *

co !o "#$o% "%, # * * o * " co !o "#$o% 7" *o 7*, "%, o +"%$ *, # * $%co !o "#o & # *7&* *&$# o3# &* $c*& o ! o7o#* &. W I# occ3 & o3#&$,*

# * co !o "#* o 7 "%, $& # *o *#$c" $%,*!*%,*%# o # * o +"%$ "#$o% o " co !o "#$o%.

2. I%co !o "#$o%Sec. 19. Commencement of corporate existence. - A! $ "#* co !o "#$o% o 7*, o o +"%$ *, 3%,* # $& Co,*co77*%c*& #o " * co !o "#* *4$*%c* "%, 3 $,$c"!* &o%" $# "%, $& ,**7*, $%co !o "#*, o7 # * ,"#* # *

S*c3 $#$*& "%, E4c "%+* Co77$&&$o% $&&3*& " c* #$'c"#* $%co !o "#$o% 3%,* $#& o>c$" &*" : "%, # * *3!o% #$%co !o "#o & oc? o ,* &/7*7 * & "%, # *$ &3cc*&&o & co%$#3#* " o, !o $#$c "%, co !o "#* 3%,* # * %"7* "#*, $%# * " #$c *& o $%co !o "#$o% o # * !* $o, o #$7* 7*%#$o# * *$% 3% *&& &"$, !* $o, $& *4#*%,*, o # * co !o "#$o&oo%* ,$&&o *, $% "cco ,"%c* $# " .Sec. 88. Purposes. - No%-oc? co !o "#$o%& 7" * o 7*, oo +"%$ *, o c " $#" * * $+$o3& *,3c"#$o%" ! o *&c3 #3 " "#* %" $#* " &c$*%#$'c &oc$" c$ $c &$7$ " !3 !o&*& $?* # ",* $%,3 "+ $c3 #3 " "%c "7 * & o "% co7 $%"#$o% # * *o &3 *c# #o # * &!*! o $&$o%& o # $& T$# * +o * %$%+ !" #$c3 " c "&&*& o co !o "#$o%&.

Fo 7" o +"%$ "#$o% Co77*%c*7*%# o 3&$%*&&SEC C* #$'c"#* = c" $%+ 3!o% "7**#$%+ o $#&7*7 * &/& " * o ,* & o # ** *c#$o% o # * Bo" , o D$ *c#o &/T 3**& $# $% 90," & # * *o .

*##$%+ !* 7$#&

KI. INCORPORATIONS#*!&

1) D " #$%+ "%, *4*c3#$o% o A #$c *& o I%co !o "#$o% $%co !o "#o & "%, o# * ,oc37*%#& *@3$ *, o *+$ "#$o# * co !o "#$o%. T * !* &o% c o&*% "& #*7!o " # *"&3!*%,$%+ $%co !o "#$o% 73 " &o *4*c3#* "% ">," $# c* #$ $co7! $"%c* $# &3 &c $!#$o% "%, !"$,-3! *@3$ *7*%#& "& #c"!$#" oc?. (S*c. 18)

- Doc37*%#&<o A #$c *& o I%co !o "#$o%o T *"&3 * & A>," $#o C* #$'c"#* o A3# o $# o7 Mo%*#" Bo" ,

BSPo N"7* K* $'c"#$o% S $! o " *##* 3%,* #"?$%

#o c "%+* # * ! o!o&*, %"7* $ &$7$ " #"%o# *

o B"%? c* #$'c"#* o ,*!o&$# co%c* %$%+ #!"$,-3! c"!$#"

o R*+$ "#$o% & **#o R*co77*%,"#$o% o # * +o # "+*%co A!! $c"#$o% o 7 # * Fo *$+% I% **

Ac# o 1HH1 (80Q)2) F$ $%+ $# # * SEC o # * A #$c *& o $%co !o "#$o% #o

$# T *"&3 * & ">," $# (S*c. 15)Note: o * %*, &!*c$" " = L" o% A #$c *& I%co !o "#$o% & " * *co77*%,*, # * "!! o! $"#*+o * %7*%# "+*%c .9) SEC ,*#* 7$%*& $ # * %"7* $& &$7$ " o co% 3&$%+ &#o "%o# * . W$# o3# # * o *+o$%+ SEC & " ! *&*! o!o&*, %"7* "%, " * $'c"#$o% & $! $ * $&&3*, (S*c. 1 ).8) P" 7*%# o ' $%+ "%, !3 $c"#$o% **&5) I&&3"%c* o # * C* #$'c"#* o I%co !o "#$o% # * SEC.

F"$# "cco7! $ = "cco7! $& *, "c#& c"%%o# * "7*%,*,.

CORPORATORS INCORPORATORS T o&* o co7!o&* "co !o "#$o% *# * "&oc? o ,* & o "& 7*7 * &

A!!*" & $% # * A #$c *& o I%co !o "#$o%.

A D$ *c#o c"% * " co !o "#oo "% $%co !o "#o .

I%co !o "#o $& " " & "co !o "#o .

T o&* oc? o ,* & 7*7 * & 7*%#$o%*, $% #" #$c *& o $%co !o "#$o%o $+$%" o 7$%+ co7!o&$%+ # * co !o "#$o% "%

o " * &$+%"#o $*& # *(S*c. 5).- N"#3 " !* &o%&

15!"4) " o *+" ""%, 7" o $# P *&$,*%7" o 7 " ! $ "#*co !o "#$o% (c"!"c$# #co%# "c#)

- E"c o # * $%co !o "#oo & oc? co !o "#$

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73 o % o * "&3 &c $ * #o "# *" o%*(1) & " * o # * c"!$#"oc? o # * co !o "#$o%(S*c. 10).

TERM*%* " R3 *< No# #o *4c**, 50 *" & o7 # * ,"#* o

$%co !o "#$o%.

E4c*!#$o%&c* & o *7! o **& & " * * *c#*, o"!!o$%#*, # * oc? o ,* & $%*", o # * o" , o,$ *c#o &.

W AT MA BE INCORPORATED AS A CLOSE CORPORATIONA% *4c*!# 7$%$%+ o o$ co7!"%$*& oc? *4c "%+

"%?& $%&3 "%c* co7!"%$*& !3 $c 3#$ $#$*& *,3c"$%$#3#$o%& "%, co !o "#$o%& ,*c " *, #o * **, !3 $c $%#* * $% "cco ,"%c* $# # * ! o $&$o%& o # $&

FORM (S*c. 15) – 3% *&& o# * $&* ! o $,*, &!*c$" " . C. AMENDMENTS (S*c. 16) = 3% *&& o# * $&* ! *&c $ *, #Co,* o &!*c$" " "%, o *+$#$7"#* !3 !o&*&<

- " 7" o $# o#* o # * o" , o ,$ *c#o & o # 3*"%,

- # * o#* o $##*% "&&*%# o # * oc? o*! *&*%#$%+ "# *" # o-# $ ,& (2/9) o # * o3#"%

c"!$#" oc? $# o3# ! * 3,$c* #o # * "!! "$&" $+ #,$&&*%#$%+ oc? o ,* & $% "cco ,"%c* $# ! o $&$o%& o # $& Co,* o # * o#* o $##*% "&&

.E. S. T$


9/11


"# *" # o-# $ ,& (2/9) o # * 7*7 * & $ $# * " %o%-oc? co !o "#$o%

- T * o $+$%" "%, "7*%,*, " #$c *& #o+*# * & "co%#"$% " ! o $&$o%& *@3$ *, " #o * &*# o3# $%# * " #$c *& o $%co !o "#$o%.

- S3c " #$c *& "& "7*%,*, & " * $%,$c"#*, 3%,* &co $%+ # * c "%+* o c "%+*& 7",* "%,

- " co! # * *o ,3 c* #$'*, 3%,* o"# # *co !o "#* &*c *#" "%, " 7" o $# o # * ,$ *c#o & o# 3**& "#$%+ # * "c# # "# &"$, "7*%,7*%# o"7*%,7*%#& " * **% ,3 "!! o *, # * *@3$ *,

o#* o # * oc? o ,* & o 7*7 * & & " *&3 7$##*, #o # * S*c3 $#$*& "%, E4c "%+* Co77$&&$o%.

EFFECTIKIT < 3!o% # * "!! o " # * S*c3 $#$*& "%, E4c "%+*Co77$&&$o% o o7 # * ,"#* o ' $%+ $# # * &"$, Co77$&&$o%$ %o# "c#*, 3!o% $# $% &$4 (6) 7o%# & o7 # * ,"#* o ' $%+ o" c"3&* %o# "## $ 3#" * #o # * co !o "#$o%.

P $ . T 3 Co. . R$ * "88 P $ . 86H (1H29)

T 3 3%, ,oc# $%* "& $o "#*,. W *% c *,$#o $& 3 !"$, $# $& 3 *@3$#" * # "# # * &"7* c"%%o# +o " #* $7.

M" c3& . R M"c;8 N.E. 2, 22 (1H8;)

A% o ,* o "% &3c & " *& %o# $% " o o &3c "c#$o% 7" "#"% #$7* ! $o #o # * o#* "3# o $ $%+ &3c "c#$o% o *c# #o &3c"c#$o% "%, ,*7"%, !" 7*%# o $& oc? "%, # * *3!o% &3coc? o ,* o # * co !o "#$o% & " " * # * $+ # &3 *c# #o# * co%,$#$o%& "%, ! o $&$o%& o &*c#$o% # *%# -o%* #o " *&3c oc? "!! "$&*, "%, !"$, o "& ! o $,*, $% &"$, &*c#$o%.S3c o *c#$o% "%, ,*7"%, 73 * $% $#$%+ "%, ' *, $# # *co !o "#$o%. S*c#$o% 9 !* 7$#& "% "!! "$&" o% *% "%"7*%,*, c* #$'c"#* " #* & # * ! * * *%#$" $+ #& o # *o3#"%,$%+ oc? o " co !o "#$o% "& *# **% # * ,$ * *%#c "&&*& o oc? $# ,o*& %o# "!! #o " c"&* * * &3c $+ #& " *

* # 3%c "%+*, "& *# **% # *7&* *& 3# " * o# 7",*&3 *c# #o " %* $&&3* o oc?. S3c "& $ ") " o $& *& "%

o#$%+ $+ # o # * o ,* & o & " *& o "% c "&& o $7$#& # *$

o#$%+ $+ #& $# ",,*, # * o o $%+ ! o $&$o% X *4c*!# "& # *&"7* 7" * $7$#*, # * o#$%+ $+ #& +$ *% #o %* & " *& o "% c "&& "3# o $ *, # * c* #$'c"#*

I+ *&$" E "%+* $c" . B$& o! L" " o( .R. 1 80 3 6 2010)

AMENDIN CORP SOLE< Fo %o%-oc? co !o "#$o%& # * !o * #o"7*%, $#& " #$c *& o $%co !o "#$o% $*& $% $#& 7*7 * &. T * co,*

*@3$ *& # o-# $ ,& o # *$ o#*& o # * "!! o " o &3c "%"7*%,7*%#. A # o3+ " %o%-oc? co !o "#$o% "& " !* &o%" $## "# $& ,$$%c# o7 # o&* o $#& 7*7 * & o *" $& *, $# $#&" #$c *& o $%co !o "#$o% c"%%o# * "7*%,*, &o * # o3+ # *"c#$o% o $#& o" , o # 3**&. T * "7*%,7*%# %**,& # *co%c3 *%c* o "# *" # o-# $ ,& o $#& 7*7 * & $!. T * o%*7*7 * * * # * *%* " S3!* $%#*%,*%# $& 3# " # 3**"cco ,$%+ #o S*c#$o% 110 o # * Co !o "#$o% Co,* o $#&7*7 * & $!.

POWER TO AMEND = " co !o "#$o%& $% "cco ,"%c* / # * Co,*(S*c. 96.8).E CEPTIONS<

1. No# &3 "%#$" $% "cco ,"%c* $# # * o 7 ! *&c $ *,* *$%:

2. T "# # * !3 !o&* o !3 !o&*& o # * co !o "#$o% " *!"#*%# 3%co%$#3#$o%" $ *+" $77o " o co%# " #o+o * %7*%# 3 *& "%, *+3 "#$o%&:9. T "# # * T *"&3 * & A>," $# co%c* %$%+ # * "7o3%# o c"!$#" oc? &3 &c $ *, "%,/o !"$, $ " &*:8. T "# # * !* c*%#"+* o o %* & $! o # * c"!$#" oc? #o

* o %*, c$#$ *%& o # * P $ $!!$%*& "& %o# **%co7! $*, $# "& *@3$ *, *4$$%+ " & o # *Co%$#3#$o%.

5. No " #$c *& o $%co !o "#$o% o "7*%,7*%# #o " #$c *&$%co !o "#$o% o "%?& "%?$%+ "%, @3"&$- "%$%$#3#$o%& 3$ ,$%+ "%, o"% "&&oc$"#$o%& # 3 "%, o# * '%"%c$" $%#* 7*,$" $*& $%&3 "%c* co7!"%$!3 $c 3#$ $#$*& *,3c"#$o%" $%$#3#$o%& "%co !o "#$o%& +o * %*, &!*c$" " & & " * "cc*!#*, o"!! o *, # * Co77$&&$o% 3% *&& "cco7!"%$*, "

" o " * *co77*%,"#$o% o # * "!! o! $"#* +o * %7*%#"+*%c #o # * * *c# # "# &3c " #$c *& o "7*%,7*%# $& $"cco ,"%c* $# " (S*c. 1;).

KOTIN RI TS< No & " * 7" * ,*! $ *, o o#$%+ $+ #&*4c*!# # o&* c "&&$'*, "%, $&&3*, "& ! * * *, o

*,**7" * & " *& 3% *&& o# * $&* ! o $,*, $% # $& CW * * # * " #$c *& o $%co !o "#$o% ! o $,* o %o%- o#$%+ &$% # * c"&*& " o *, # $& Co,* # * o ,* & o &3c & "& " %* * # * *&& * *%#$# *, #o o#* o% # * o o $%+ 7"#1 1. A7*%,7*%#&:2 2. A,o!#$o% "%, "7*%,7*%# o - " &:9 9. S" * *"&* *4c "%+* 7o #+"+* ! *,+* o o# *

,$&!o&$#$o% o " o &3 "%#$" " o # * c! o!* # :

8 8. I%c3 $%+ c *"#$%+ o $%c *"&$%+ o%,*, $%,* #*,%*&&5 5. I%c *"&* o ,*c *"&* o c"!$#" oc?:6 6. M* +* o co%&o $,"#$o% o # * co !o "#$o%:; ;. I% **%# o co !o "#* 3%,& $% "%o# * co !o "#$o%

3&$%*&& $% "cco ,"%c* $# # $& Co,*: "%,. D$&&o 3#$o% o # * co !o "#$o%.

APPRAISAL RI T< R$+ # #o ,$&&*%# "%, ,*7"%, !" 7*%# o # *"$ " 3* o $& & " *& $% c"&* "% "7*%,7*%# #o # * " #$c *

$%co !o "#$o% "& # * * *c# o c "%+$%+ o * $c#$%+ # *o "% oc? o ,* o c "&& o & " *& o o "3# o! * * *%c*& $% "% *&!*c# &3!* $o #o # o&* o o3#"%& " *& o "% c "&& o o *4#*%,$%+ o & o #*%$%+ # * co !o "#* *4$*%c* (S*c. 1.1).

• I%co !o "#o & " * $ o3%, # * "7*%,7*%# 3# c"*4* c$&* # $& $+ # "& " *7*, 3% *&& # * &"7* %o# "##*%,*, # * 7**#$%+ #o *4! *&& $& o *c#$o%.

RE-WRITTEN ASSENT< W $##*% %o#$c* o # * ! o!o&*, "c#$o% "o # * #$7* "%, ! "c* o # * 7**#$%+ & " * ,*!o&$#*, #o # *

",, *&&** $% # * !o o>c* $# !o"+* ! *!"$, o !* &o%"&* *, #o *"c oc? o ,* /7*7 * "# $& ! "c* o *&$,*%c* "&& o % o% # * oo?& o # * co !o "#$o% "%,.

1) E4#*%&$o%/S o #*% #* 7< "!! o *, " 7" o $# o#* o# * o" , o ,$ *c#o & o # 3**& "%, "#$'*, "# 7**#$%+ # * oc? o ,* & *! *&*%#$%+ "# *" # $ ,& (2/9) o # * o3#"%,$%+ c"!$#" oc? o

*" # o-# $ ,& (2/9) o # * 7*7 * & $% c"&* o %ooc? co !o "#$o%&. A% ,$&&*%#$%+ oc? o ,**4* c$&* $& "!! "$&" $+ # 3%,* # * co%,$#! o $,*, $% # $& co,* (S*c. 9;).

2) I%c *"&*/D*c *"&* c"!$#" oc? o $%c3 /c *"#*/$%c *o%,*, $%,* #*,%*&&< "!! o *, " 7" o $# o#* o

# * o" , o ,$ *c#o & "%, "# " oc? o ,* & 7**#$%,3 c" *, o # * !3 !o&* # o-# $ ,& (2/9) o #o3#"%,$%+ c"!$#" oc? & " " o # * $%c *"&

,$7$%3#$o% o # * c"!$#" oc? o # * $%c3c *"#$%+ o $%c *"&$%+ o "% o%,*, $%,* #*,%*&&.A c* #$'c"#* $% ,3! $c"#* 73 * &$+%*, " 7" o $#o # * ,$ *c#o & o # * co !o "#$o% "%, co3%#* &$+%*,# * c "$ 7"% "%, # * &*c *#" o # * oc? o ,*7**#$%+ &*##$%+ o # # "#<

(1) R*@3$ *7*%#& o # $& &*c#$o% " * co7! $*, $# :(2) A7o3%# o # * $%c *"&* o ,$7$%3#$o% o #c"!$#" oc?: (9) I "% $%c *"&* o # * c"!$#" o# * "7o3%# o c"!$#" oc? o %37 * o & " *& o%o-!" oc? # * *o "c#3" &3 &c $ *, # * %"7%"#$o%" $#$*& "%, *&$,*%c*& o # * !*&3 &c $ $%+ # * "7o3%# o c"!$#" oc? o %37o %o-!" oc? &3 &c $ *, *"c "%, # * "7o3%#!"$, *"c o% $& &3 &c $!#$o% $% c"& o ! o!*o # * "7o3%# o c"!$#" oc? o %37 * o & " *

.E. S. T$


10/11


o %o-!" oc? " o##*, #o *"c oc?- o ,* $ &3c$%c *"&* $& o # * !3 !o&* o 7"?$%+ * *c#$ * oc?,$ $,*%, # * * o "3# o $ *,:(8) Bo%,*, $%,* #*,%*&& #o * $%c3 *, c *"#*, o$%c *"&*,:(5) Ac#3" $%,* #*,%*&& o% # * ," o # * 7**#$%+:(6) T * "7o3%# o oc? *! *&*%#*, "# # * 7**#$%+:"%,(;) T * o#* "3# o $ $%+ # * 7"##* .

P $o "!! o " o # * S*c3 $#$*& "%, E4c "%+*Co77$&&$o% 3!o% & o % "#*7*%# o # *"&3 * . No,*c *"&* o # * c"!$#" oc? & " * "!! o *, # *Co77$&&$o% $ $#& * *c# & " ! * 3,$c* # * $+ #& o co !o "#* c *,$#o &.

9) D* *#*/ *7o * ! o $&$o% *@3$ *, # $& T$# * #o *co%#"$%*, $% # * " #$c *& o $%co !o "#$o% o *,3c* "@3o 37 o o#$%+ *@3$ *7*%# & " %o# * " $, o* *c#$ * 3% *&& "!! o *, # * "> 7"#$ * o#* o "#

*" # o-# $ ,& (2/9) o # * o3#"%,$%+ c"!$#" oc?*# * $# o $# o3# o#$%+ $+ #& o o &3c + *"#*

! o!o #$o% o & " *& "& 7" * &!*c$'c" ! o $,*, $%# * " #$c *& o $%co !o "#$o% o "7*%,$%+ ,* *#$%+ o

*7o $%+ "% o # * " o *&"$, ! o $&$o%& "# " 7**#$%+,3 c" *, o # * !3 !o&*.

- C$#$ *%& $! *@3$ *7*%#& --- S*c. 180 T * * $& %o *@3$ *7*%# # "# # * 7" o $# 73 * c$#$ *%& o # *P $ $!!$%*&. T * 3 * o * * $& &3 *c# #o # * *@3$ *7*%#& o !* #$%*%# %"#$o%" $ "#$o% " &. Fo $%"%c* $ # * " *@3$ *&" oc? o ,* & #o * F$ $!$%o c$#$ *%& # *% $# o o & # "# "$%co !o "#o & 73 " &o * c$#$ *%&.

No "%c $&* c* #$'c"#* o "% o# * o 7 o "3# o $ "#$o% o# * o!* "#$o% o " !3 $c 3#$ $# & " * + "%#*, *4c*!# #oc$#$ *%& o # * P $ $!!$%*& o #o co !o "#$o%& o "&&oc$"#$o%&o +"%$ *, 3%,* # * " & o # * P $ $!!$%*& "# *" &$4# !*c*%#37 o o&* c"!$#" $& o %*, &3c c$#$ *%& %o & "&3c "%c $&* c* #$'c"#* o "3# o $ "#$o% * *4c 3&$ * $%c " "c#* o o " o%+* !* $o, # "% ' # *" &. N*$# * & ""% &3c "%c $&* o $+ # * + "%#*, *4c*!# 3%,* # *co%,$#$o% # "# $# & " * &3 *c# #o "7*%,7*%# " #* "#$o% o

*!*" # * Co%+ *&& *% # * co77o% +oo, &o *@3$ *&. T *

S#"#* & " *%co3 "+* *@3$# !" #$c$!"#$o% $% !3 $c 3#$ $#$*& # * +*%* " !3 $c. T * !" #$c$!"#$o% o o *$+% $% *o & $% # *+o * %$%+ o, o "% !3 $c 3#$ $# *%#* ! $&* & " * $7$#*, #o# *$ ! o!o #$o%"#* & " * $% $#& c"!$#" "%, " # * *4*c3#$ * "%,7"%"+$%+ o>c* & o &3c co !o "#$o% o "&&oc$"#$o% 73 *c$#$ *%& o # * P $ $!!$%*&.

"7 o" . T* *& *# "( R 1;65;H: 3%* 2 2011 "%, Oc#. H 2012)

CAPITAL< $c * * & #o # * Y& " *& $# o#$%+ $+ #& "& * "&$# 3 *%*'c$" o %* & $! (A #. 12 &*c. 10): $c $7! $*&

# "# # * $+ # #o o#* $% # * * *c#$o% o ,$ *c#o & co3! *, $#*%*'#& $& #"%#"7o3%# #o "% * *c#$ * co%# o .

SEC M*7o C$ c. No. &2019( 3$,* $%*& $% F$ -Fo *$+% o %* & $!)

CAPITAL "& * * *, #o $% # * ! * $o3& c"&* & " "!! o% #o& " *& o oc? *%#$# *, #o o#* $% # * * *c#$o% o ,$ *c#o &.A,,$#$o%" IRR o # * FIA c *" *@3$ *& # * *4$*%c* o '

*%*'c$" o %* & $! o # * oc?& "%, "!! o! $"#* o#$%+ $+ #&$% ,*#* 7$%$%+ *# * oc?& " * o %*, ", * , P $ $!!$%*%"#$o%" &.

Fo *$+% I% **%#& Ac# (FIA) o 1HH1 "& "7*%,*,P $ $!!$%* %"#$o%" V & " 7*"% " c$#$ *% o # * P $ $!!$%*&: o "

,o7*$c !" #%* & $! o "&&oc$"#$o% o o %*, c$#$ *%& o # * P $ $!!$%*&: o " co !o "#$o% o +"%$ *, 3%,* # * " & o # *P $ $!!$%*& o $c "# *" &$4# !* c*%# o # * c"!$#" oc?o3#"%,$%+ "%, *%#$# *, #o o#* $& o %*, "%, * , c$#$ *%& o # * P $ $!!$%*&: o " co !o "#$o% o +"%$ *, " o", "%, *+$* *,"& ,o$%+ 3&$%*&& $% # * P $ $!!$%*& 3%,* # * Co !o "#$o% Co,*

o $c o%* 3%, *, !* c*%# (100Q) o # * c"!$#" oc?o3#"%,$%+ "%, *%#$# *, #o o#* $& o o %*, F$ $!$%o&# 3** o 3%,& o !*%&$o% o o# * *7! o ** *#$ *7*%&*!" "#$o% *%*'#& * * # * # 3** $& " P $ $!!$%* %"#"%, "# *" &$4# !* c*%# (60Q) o # * 3%, $ "cc 3* #o #

*%*'# o P $ $!!$%* %"#$o%" &< P o $,*, T "# * *co !o "#$o% "%, $#& %o%- F$ $!$%o oc? o ,* & o % oc?S*c3 $#$*& "%, E4c "%+* Co77$&&$o% (SEC) *+$**%#* ! $&* "# *" &$4# !* c*%# (60Q) o # * c"!$#" &o3#"%,$%+ "%, *%#$# *, #o o#* o *"c o o# co !o "#$o%73 * o %*, "%, * , c$#$ *%& o # * P $ $!!$%*& "%, "

*" &$4# !* c*%# (60Q) o # * 7*7 * & o # * Bo" , oD$ *c#o & o *"c o o# co !o "#$o%& 73 * c$#$ *%& oP $ $!!$%*& $% o ,* # "# # * co !o "#$o% & " * co%&$,

P $ $!!$%* %"#$o%" .o W "# $ " & " * o ,* $& " co !o "#$o%

80Q F$ $!$%o $%,$ $,3" & Z 80Q co !o "#$o% Z 80Fo *$+%: # * 80Q co ! $& "c#3" 60/80 # *% $# $&P $ $!!$%* %"#$o%" .

N" " N$c?* M$%$%+ . R*,7o%#( .R. 1H55 0: A! $ 21 2018)

CONTROL TEST/LIBERAL RULE<P3 !o&* - P* &o% $& *%#$# *, #o !" #$c$!"#* $% # * *4! o ",* * o!7*%# "%, 3#$ $ "#$o% o # * %"#3 " *&o3 c*& o P $ $!!$%*&.

RANDFAT ER RULE<A!! $c" $ $# < *% # * * $&doubt over the 60/40 Filipinoequit o!ner"hip co%# " #o # * " *+"#$o%& !*#$#$o%* & # "# # * co%# o #* & o3 , * 3&*, "& $# "& # *"!! $*, 3%,* FIA.M*# o,< #*$%+ # * co !o "#* " * $%+ o *"c * * "#

" 3* $# "!!*" & # "# co !o "#$o%& &"#$& # * F$ $!$%o *@3$ *7*%# 3# $% # 3# # * 3 #$7"#* co%# o $%+ & " *

" * o *$+%* &.

Co7!3#"#$o%<CONTROL TEST/LIBERAL TEST RANDFAT ER RULE

Ro7"% C"# o $c A!oo $c A,7$%. o D" "o(102 P $ . 5H6)

N"#$o%" $# o co !o "#$o% &o *< " co !o "#$o% &o * $& o +"%, co7!o&*, o " &$%+ * $%,$ $,3" # * *", o "% * $+$o3&oc$*# o c 3 c o # * ",7$%$ "#$o% o # * #*7!o " $#$&3c &oc$*# o c 3 c . B #*7!o " $#$*& " * 7*"%# *"#*& ! o!* #$*& %o# 3&*, *4c 3&$ * o * $+$o3& o & $! *&3cc*&&o & $% o>c* o &3c * $+$o3& *", o c $* !

$%co !o "#*, "& " co !o "#$o% &o * & " *co7* # * co !o "#$o&o * o% "&c*%&$o% #o o>c* "%, & " * !* 7$##*, #o # "%&3&$%*&& "& &3c o% ' $%+ $# # * S*c3 $#$*& "%, E4c

Co77$&&$o% " co! o $& co77$&&$o% c* #$'c"#* o * *c#$o%*##* o "!!o$%#7*%# ,3 c* #$'*, "% %o#" !3 $c o c *

o co3 # o *co ,.

o3%+ A3#o S3!! Co. . CA(1HH9) 229 SCRA 6;0

R*&$,*%c* o co !o "#$o%< No *&$,*%c* $% # * &"7* &*%&$c # $& #* 7 $& "!! $*, #o " %"#3 " !* &o%. B3# o ! "c#$

!3 !o&*& " co !o "#$o% $& $% " 7*#"! &$c" &*%&* " *&$,*%# * ! "c* * * $#& ! $%c$!" o>c* $& oc"#*, "& "#*, $% #" #$c *& o $%co !o "#$o%.

N"7* o co !o "#$o% = (SEC M*7o C$ c. 18 S* $*& o 2000)

.E. S. T$


11/11


- U&* o # * c "3&*&< $%co !o "#*, co !o "#*, co !. $%c. *#c.- Co7!"%$*& No %**,.- Doc# $%* o S*co%," M*"%$%+

D* 3 * Co !o "#$o%& D* F"c#o Co !o "#$o%&F3 ' *, "#3#o o 7" $#$*& B"&*, o7 " " $, "

oo, F"$#A3# o $ *, $# co !o "#*!o * &

A&&37*& co !o "#* !o * &

D* F"c#o Co !o "#$o%& Co !o "#$o% *o!!*B"&*, o7 " " $, " .

oo, "$# #o "##*7!# #oco7! .A% "c# 7",* o% # *co !o "#$o% & * " $#&7*7 * &.

So7*o%* o o!* "#*& "3&$%*&&as if it were " $7$#*,$" $ $# *%#$# o co !o "#$o%

$ *&!*c#$ * o *# * # * *"& " +oo, "$# * o # # *3&$%*&& #o $%co !o "#*.

Co !o "#$o% Eo!!* = S*c. 21 ( "#$o%" * $" $ $#$*& "

1. W$# o3# "3# o $# #o "&&37* # * "c# "& " co !o "#$o%• L$" * "& +*%* " !" #%* & o " ,* #& $" $ $#

,"7"+*& $%c3 *,• W *% &3*,< %o# " o *, #o 3&* "& ,* *%&* # "# $# "&

co !o "#$o% !* &o%" $#2. L$" $ $# "& #o +*%* " !" #%* &< * *% * o%,

$% **%# $% # * co !o "#$o%•

I%c 3,*& !* &o%" ! o!* #• E%#* ! $&* $" $ $#• To # $" $ $#

9. A!! $c" * #o " # $ , !" # o% *% * # $*& #o *&c"$" $ $# o% " co%# "c# o7 $c * "& *%*'#*,

8. No# "!! $c" * #o !" # # $%+ #o c "$75. C"%%o# o * $,* 3 $&,$c#$o%" *@3$ *7*%# *

3 $&,$c#$o% $& '4*, "

.E. S. T$

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