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FAO - One Person Corporation
Legal Sheets

Frequently Asked Questions About One Person Corporation (Part 3)

The OPC, like an ordinary corporation, is a juridical entity with personality separate and distinct from that of the single stockholder...
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One Person Corporation - Frequently Asked Questions
Legal Sheets

Frequently Asked Questions About One Person Corporation (Part 2)

The law requires the OPC to designate a nominee and an alternate nominee who, in the event of the single stockholder’s death or incapacity, shall take the place of the single stockholder...
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Foreign corporation doing business in the Philippines
Legal Sheets

On Foreign Corporations Doing Business in the Philippines

The phrase “doing business” shall include soliciting orders, service contracts, opening offices, whether called “liaison” offices or branches; appointing representatives or distributors domiciled in the Philippines...
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Transfer of Shares of Stock
Legal Sheets

On Stock and Transfer Book and the Remedy of Mandamus

Until and unless the transfer of the shares of stock is duly recorded in the stock and transfer book of the corporation, it is not binding upon the corporation.
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Right to Inspect Corporate Books
Legal Sheets

On the Right of a Stockholder to Inspect Corporate Books and Records

if the right is to be denied, the burden of proof is upon the corporation to show that the purpose of the shareholder is improper, by way of defense...
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Independent Directors
Legal Sheets

On Independent Directors

Both the Securities Regulation Code and the Revised Corporation Code require the election of independent directors in specified instances...
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Derivative Suits
Legal Sheets

On Derivative Suit and Its Requisites

An individual stockholder may be permitted to institute a derivative suit in behalf of the corporation in order to protect or vindicate corporate rights whenever the officials of the corporation refuse to sue...
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Stay Order
Legal Sheets

Effect of Stay Order on Right of Creditors to Sue a Corporation Under Rehabilitation

The collection case instituted by creditor against the principal debtor and its surety may proceed despite a stay order...
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Piercing the veil of corporate fiction
Legal Sheets

On Piercing the Veil of Corporate Fiction – Arco Pulp and Paper versus Cupertino Realty

The separate personality of a corporation is merely a fiction of law created for convenience which may be pierced or disregarded to promote the ends of justice...
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Nell Doctrine Exceptions
Legal Sheets

Exceptions to the Nell Doctrine

The Supreme Court laid down the exceptions to the Nell Doctrine, in which instances, the transferee shall assume the liabilities of the transferor corporation...
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Debt and Liability
Legal Sheets

Liability of Transferee for the Debts of Transferor When a Corporation Sells All of Its Assets to Another

Generally where one corporation sells or otherwise transfers all of its assets to another corporation, the latter is not liable for the debts and liabilities of the transferor...
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Nell Doctrine
Legal Sheets

The Nell Doctrine

The Nell Doctrine states the general rule that the transfer of all the assets of a corporation to another shall not render the latter liable to the liabilities of the transferor...
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Notice - Stockholders Meeting
Legal Sheets

Validity of Notice of Stockholders’ Meeting Not Affected By Date of Receipt

Section 50 of the Corporation Code and the by-laws of GCI only require the sending/mailing of the notice of a stockholders' meeting to the stockholders of the corporation. Sending/mailing is different from filing or service under the Rules of Court...
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Business enterprise transfer
Legal Sheets

Business Enterprise Transfer Rule

The purpose of the business-enterprise transfer is to protect the creditors of the business by allowing them a remedy against the new owner...
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Capacity to sue
Legal Sheets

Capacity to Sue of Dissolved Corporation

The time during which the corporation, through its own officers, may conduct the liquidation of its assets and sue and be sued as a corporation is limited to three years from the time the period of dissolution commences...
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