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    Solidbank Vs Mindanao

    Uploaded by

    Martin Pagtanac
    This case discusses whether the individual respondents can be held personally liable for Mindanao Ferroalloy Corporation's failure to repay a loan from Solidbank Corp. Mindanao Ferroalloy Corporation is a joint venture between MCCI and 3 Korean corporations. The board approved a resolution authorizing the president and chairman or Teresita Cu, acting with the vice president, to secure an omnibus loan from Solidbank. However, Mindanao Ferroalloy Corporation stopped operations and failed to repay the loan. The court held that a corporation has a separate legal personality, and corporate officers cannot be held personally liable for acts conducted in their official capacity and in good faith on behalf of the corporation.

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    © All Rights Reserved
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    Solidbank Vs Mindanao

    Uploaded by

    Martin Pagtanac
    25 views3 pages
    This case discusses whether the individual respondents can be held personally liable for Mindanao Ferroalloy Corporation's failure to repay a loan from Solidbank Corp. Mindanao Ferroalloy Corporation is a joint venture between MCCI and 3 Korean corporations. The board approved a resolution authorizing the president and chairman or Teresita Cu, acting with the vice president, to secure an omnibus loan from Solidbank. However, Mindanao Ferroalloy Corporation stopped operations and failed to repay the loan. The court held that a corporation has a separate legal personality, and corporate officers cannot be held personally liable for acts conducted in their official capacity and in good faith on behalf of the corporation.

    Original Title

    33. Solidbank vs Mindanao

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    This case discusses whether the individual respondents can be held personally liable for Mindanao Ferroalloy Corporation's failure to repay a loan from Solidbank Corp. Mindanao Ferroalloy Corporation is a joint venture between MCCI and 3 Korean corporations. The board approved a resolution authorizing the president and chairman or Teresita Cu, acting with the vice president, to secure an omnibus loan from Solidbank. However, Mindanao Ferroalloy Corporation stopped operations and failed to repay the loan. The court held that a corporation has a separate legal personality, and corporate officers cannot be held personally liable for acts conducted in their official capacity and in good faith on behalf of the corporation.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    25 views3 pages

    Solidbank Vs Mindanao

    Uploaded by

    Martin Pagtanac
    This case discusses whether the individual respondents can be held personally liable for Mindanao Ferroalloy Corporation's failure to repay a loan from Solidbank Corp. Mindanao Ferroalloy Corporation is a joint venture between MCCI and 3 Korean corporations. The board approved a resolution authorizing the president and chairman or Teresita Cu, acting with the vice president, to secure an omnibus loan from Solidbank. However, Mindanao Ferroalloy Corporation stopped operations and failed to repay the loan. The court held that a corporation has a separate legal personality, and corporate officers cannot be held personally liable for acts conducted in their official capacity and in good faith on behalf of the corporation.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Case Name Solidbank Corp vs Mindanao FerroAlloy Corp

    Topic Piercing the Veil

    Case No. | G.R. No. 153535. July 28, 2005


    Date

    Ponente J. Panganiban

    Petitioner Solidbank Corp

    Respondent Mindanao FerroAlloy Corp

    Definition

    Corporate officers cannot be held personally liable for the consequences of their acts,

    Doctrine for as long as these are for and on behalf of the corporation, within the scope of their

    authority and in good faith.

    Enumeration

    RELEVANT FACTS

    Mindanao Ferroalloy Corporation is a joint venture of MCCI and 3 Korean Corporations. Ricardo P. Gue-

    vara was the President and Chairman of the Board of Directors. Jong-Won Hong was the Vice-President

    for Finance, Marketing and Administration. So was Teresita R. Cu.

    On November 26, 1990, the Board approved a ‘Resolution’ authorizing its President and Chairman or

    Teresita Cu, acting together with Mr. Hong, to secure an omnibus loan from the Solidbank. "The Corpo-

    ration also executed a ‘Quedan’ and trust receipt agreement by way of additional security of the loan.
    However, shortly after the execution of the said deeds, the Corporation stopped its operations. The Cor -

    poration failed to pay its loan availments from the Bank inclusive of accrued interest

    ISSUE:

    W/N the individual respondents are liable, either jointly or solidarily, with the Mindanao Ferroalloy Cor -
    poration;

    RULING:

    No. Basic is the principle that a corporation is vested by law with a personality separate and distinct

    from that of each person composing or representing it. Equally fundamental is the general rule that cor-

    porate officers cannot be held personally liable for the consequences of their acts, for as long as these

    are for and on behalf of the corporation, within the scope of their authority and in good faith. The sepa-

    rate corporate personality is a shield against the personal liability of corporate officers, whose acts are

    properly attributed to the corporation.

    100-word digest

    SOLIDBANK VS MINDANAO

    Facts: Mindanao Ferroalloy Corporation is a joint venture of MCCI and 3 Korean Corporations. Ricardo
    Guevara was the President and Chairman of the Board of Directors. Jong-Won Hong was the Vice-Presi-
    dent for Finance, Marketing and Administration. So was Teresita R. Cu.
    On November 26, 1990, the Board approved a ‘Resolution’ authorizing its President and Chair-
    man or Teresita. Cu, acting together with Mr. Hong, to secure a loan from the Solidbank. The
    Corporation failed to pay its loan from the Bank.
    Issue: W/N the individual respondents are liable, either jointly or solidarily, with the Mindanao
    Ferroalloy Corporation;

    Held: No. A corporation is vested by law with a personality separate and distinct from that of

    each person composing or representing it.

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