Corporation Law

THE REVISED CORPORATION CODE  OF THE PHILIPPINES  

Republic Act No. 11232 

• Introduction to Business Organizations

TITLE I - GENERAL PROVISIONS 

• Sec. 1. Title of the Code
• Sec. 2. Corporation defined
• Sec. 3. Classes of Corporations
• Sec. 4. Corporations Created by Special Laws or Charters
• Sec. 5. Corporators and Incorporators, Stockholders and Members
• Sec. 6. Classification of Shares
• Sec. 7. Founders’ Shares
• Sec. 8. Redeemable Shares
• Sec. 9. Treasury shares

Practice Q&A

TITLE II - INCORPORATION AND ORGANIZATION OF PRIVATE CORPORATIONS

• Sec. 10. Number and Qualifications of lncorporators
• Sec. 11. Corporate Term
• Sec. 12. Minimum Capital Stock Not Required of Stock Corporations
• Sec. 13. Contents of the Articles of Incorporation 
• Sec. 14. Form of Articles of Incorporation
• Sec. 15. Amendments of Articles of Incorporation
• Sec. 16. Grounds When Articles of Incorporation or Amendment May be Disapproved
• Sec. 17. Corporation Name
• Amended Guidelines and Procedures on the Use of Corporate and Partnership Names
• Sec. 18. Registration, Incorporation and Commencement of Corporation Existence
• Sec. 19. De facto Corporations
• Sec. 20. Corporation by Estoppel
• Sec. 21. Effects of Non-Use of Corporate Charter and Continous Inoperation

Case Digests: Doctrine

1. Philippine National Bank v. Hydro Resources Contractors Corp., 693 SCRA 294
2. Bataan Shipyard & Engineering Co., Inc. v. Presidential Commission on Good Government, 150 SCRA 181
3. Noell Whessoe, Inc. v. Independent Testing Consultants, Inc., G.R. No. 199851, November 7, 2018
4. Funa v. Manila Economic Cultural Office et al., G.R. No. 193462, February 4,2014
5. League of Cities of the Philippines v. Commission on Elections, 571 SCRA 263
6. Rivera v. United Laboratories, Inc., 586 SCRA 269
7. Heirs of Fe Tan Uy v. International Exchange Bank, 690 SCRA 519
8. Concept Builders, Inc. v. National Labor Relations Commission, et al., 257 SCRA149
9. Philippine National Bank v. Ritratto Group, Inc., et al., 362 SCRA 216
10. WPM International Trading, Inc. et al. v. Labayen, 735 SCRA 297
11. International Academy of Management and Economics Incorporated (I/AME) v. Liton and Co., Inc., G.R. No. 191525, December 13, 2017
12. Mabuhay Holdings Corp., v. Sembcorp Logistic Limited, G.R. No. 212734, December 5, 2018
13. Phil. Society for the Prevention of Cruelty to Animals v. Commission on Audit, 195 SCRA 444
14. Seventh Day Adventist Conference Church of Southern Phils., Inc. v. Northeastern Mindanao Mission of Seventh Day Adventist, Inc., G.R. No. 150416, July 21, 2006
15. Missionary Sisters of Our Lady of Fatima v. Alzona, G.R. No. 224307, August 6, 2018
16. Lozano v. De Los Santos, 274 SCRA 452
17. Narra Nickel Mining and Development Corporation v. Redmont Consolidated Mine, Corp., G.R. No. 195580, April 21, 2014
18. Commissioner of Internal Revenue v. Court of Appeals, 301 SCRA 152
19. Delpher Trades Corporation v. Intermediate Appellate Court, 157 SCRA 349
20. Philippine Coconut Producers Federation, Inc. v. Republic, G.R. No. 177857-58, September 17, 2009
21. Salido v. Aramaywan Metals Development Corporation, G.R. No. 233857, March 18, 2021
22. Philips Export B.V. v. Court of Appeals, 206 SCRA 457
23. Lyceum of the Philippines v. Court of Appeals, 219 SCRA 610
24. Asia Pacific Resources International Holdings, Ltd. V. Paperone, Inc., G.R. No. 213365-66, December 10, 2018
25. De La Salle Montessori International Malolos, Inc. v. De La Salle Brothers, Inc., G.R. No. 205548, February 7, 2018
26. Indian Chamber of Commerce Phils., Inc. v. Filipino-Indian Chamber of Commerce of the Philippines, Inc., G.R. No. 184008, August 3, 2016
27. GSIS Family Bank-Thrift Bank [Formerly Comsavings Bank, Inc.] v. BPI Family Bank, 771 SCRA 284
28. Ang mga Kaanib sa Iglesia ng Dios kay Kristo Hesus, H.S.K. sa Bansang Pilipinas, Inc. v. Iglesia ng Diyos kay Kristo Hesus, Haligi at Suhay ng Katotohanan, 372 SCRA 171
29. Zuellig Freight and Cargo Systems v. NLRC, 701 SCRA 561

TITLE III - BOARD OF DIRECTORS/TRUSTEES/OFFICERS

• Sec. 22. The Board of Directors or Trustees of a Corporation; Qualification and Term.
• Problems
• 2016 Code of Corporate Governance Principles.
• Sec. 23. Election of Directors or Trustees.
• Sec. 24. Corporate Officers.
• Commonwealth Act No. 108 (Anti-Dummy Law)
• Sec. 25. Report of Election of Directors, Trustees and Officers, Non-holding of Election and Cessation from Office.
• Sec. 26. Disqualification of Directors, Trustees or Officers.
• Sec. 27. Removal of Director or Trustees.
• Sec. 28. Vacancies in the Office of Director or Trustee; Emergency Board. 
• Sec. 29. Compensation of Directors or Trustees.
• Sec. 30. Liability of Directors, Trustees or Officers.
• Sec. 31. Dealings of Directors, Trustees or Officers with the Corporation.
• Sec. 32. Contracts Between Corporations with Interlocking Directors.
• Sec. 33. Disloyalty of a Director.
• Sec. 34. Executive Management, and Other Special Committees.

TITLE IV - POWERS OF CORPORATIONS

• Sec. 35. Corporate Powers and Capacity.
• Sec. 36. Power to Extend or Shorten Corporate Term.
• Sec. 37. Power to Increase or Decrease Capital Stock; Incur, Create or Increase Bonded Indebtedness.
• Sec. 38. Power to Deny Pre-Emptive Right.
• Sec. 39. Sale or Other Disposition of Assets.
• Sec. 40. Power to Acquire Own Shares.
• Sec. 41. Power to Invest Corporate Funds in Another Corporation or Business or For Any Other Purpose.
• Sec. 42. Power to Declare Dividends.
• SEC MC No. 11-2009: Revised Guidelines on the Determination of Retained Earnings Available for Dividend Declaration
• Sec. 43. Power to Enter Into Management Contract.
• Sec. 44. Ultra Vires Acts of Corporations.

TITLE V - BYLAWS

• Sec. 45. Adoption of By-Laws.
• Sec. 46. Contents of By-Laws.
• Sec. 47. Amendment to By-Laws.

TITLE VI - MEETINGS

• Sec. 48. Kinds of Meetings.
• Sec. 49. Adoption of By-Laws.
• Sec. 50. Place and Time of Meetings of Stockholders or Members.
• SEC Memorandum Circular No. 6, Series of 2020
• Sec. 51. Quorum in Meetings.
• Sec. 52. Regular and Special Meetings of Directors or Trustees; Quorum.
• Sec. 53. Who Shall Preside at Meetings.
• Sec. 54. Right to Vote of Secures Creditors and Administrators.
• Sec. 55. Voting in Case of Joint Ownership of Stock.
• Sec. 56. Voting Right for Treasury Shares.
• Sec. 57. Manner of Voting; Proxies.
• Sec. 58. Voting Trusts.

TITLE VII - STOCKS AND STOCKHOLDERS

• Sec. 59. Subscription Contract.
• Sec. 60. Pre-incorporation Subscription.
• Sec. 61. Consideration for Stocks.
• Sec. 62. Certificate of Stock and Transfer of Shares. 
• Sec. 63. Issuance of Stock Certificates.
• Sec. 64. Liability of Directors for Watered Stocks.
• Sec. 65. Interest on Unpaid Subscriptions.
• Sec. 66. Payment of Balance of Subscription.
• Sec. 67. Delinquency Sale. 
• Sec. 68. When Sale May be Questioned. 
• Sec. 69. Court Action to Recover Unpaid Subscription.
• Sec. 70. Effect of Delinquency.
• Sec. 71. Rights of Unpaid Shares, Nondelinquent.
• Sec. 72. Lost or Destroyed Certificates.

TITLE VIII - CORPORATE BOOKS AND RECORDS

• Sec. 73. Books to be Kept; Stock Transfer Agent.
• Sec. 74. Right to Financial Statements.

TITLE IX - MERGER AND CONSOLIDATION

• Sec. 75. Plan of Merger or Consolidation.
• Sec. 76. Stockholders' or Members' Approval.
• Sec. 77. Articles of Merger or Consolidation. 
• Sec. 78. Effectivity of Merger or Consolidation.
• Sec. 79. Effects of Merger or Consolidation.
• Philippine Competition Law (R.A. 10667)

TITLE X - APPRAISAL RIGHT

• Sec. 80. When the Right of Appraisal May Be Exercised.
• Sec. 81. How Right is Exercised.
• Sec. 82. Effect of Demand and Termination of Right. 
• Sec. 83. When Right to Payment Ceases. 
• Sec. 84. Who Bears Costs of Appraisal.
• Sec. 85. Notation on Certificates; Rights of Transferee.