Corpo Midterms Memory Aid
Corpo Midterms Memory Aid
Corpo Midterms Memory Aid
Tests:
1. Control Test: Determine whether 60% of the voting outstanding capital stock of the corporate investor is of Filipino ownership.
- When used: If Filipino nationality requirement is 60%
2. Grandfather Rule: Determine the nationality of the corporate investors of the corporate investors
- When used:
a. Filipino nationality requirement is more than 60%
b. If after applying the control test, it appears that the Filipino ownership of the corporate investor is less than 60%
c. When there is doubt (Narra doctrine)
Other
Shareholders Board of Directors Officers
committees
Educational institutions:
Generally, 5 years
Same staggered term as non-stock
corporation trustees but change 1/3
to 1/5
Voting table
Amendment of AOI
(V & NV)
Adoption or Amendment
of By-Laws
(V & NV)
Delegate to directors
amendment of by-laws
Revocation of delegation
Removal of Directors
Election, appointment or
removal of corporate
officers
Delegation of powers to
Executive Committee (If BOD is authorized by
the by-laws)
If there is no longer a
quorum in BOD
In cases of vacancy
Filling of Vacancies
resulting from expiration If still constitute a
of term or removal quorum
In case of vacancy
resulting from increase
in number of directors
Compensation of
Directors (10%)
Entering into
Management Contract
Management Contract, if
1/3 managed corp is
controlled by managing (of managed corp)
corp
Contracts w/ Directors
(Sec 33)
Contracts w/ corps w/
interlocking Directors
(Sec 37)
Distribution of stock
dividends (Cash Divs>
BOD)
Sale of all or
substantially all assets
(V & NV)
Sale, mortgage,
disposition in ordinary
course of business
Investment corporate
funds in another
corporation or for any
other purpose not
(V & NV)
related to primary
purpose
Merger & consolidation
(V & NV)
Increase or Decrease
AKS or Bonded
Indebtedness (V & NV)
Dissolution (includes
shortening of term)
(V & NV)
Declaration of cash
dividends
Declaration of stock
dividends
CORPORATION BY ESTOPPEL
1. De jure?
2. De facto?
3. Who is claimant? Did he contract with the ostensible corp believing that the latter is a de jure one? If yes, he cannot enforce
personal liability
4. Corporation by estoppel
- Was there misrepresentation? If yes, then corpo members are liable as general partners (???)
- Those acting in behalf of a corporation and those benefited by it, knowing it to be without valid existence, are held to be
liable as general partners
5. In any case, liability cannot be escaped by alleging that there is no corporate personality
Questions to ask:
1. Is it in excess of the power granted in AOI?
2. If it’s not a power granted in AOI, is it necessary and incidental?
3. If the power is granted in the AOI, is it illegal?