Corporation Law

Corporation Law
General Provisions
A.
B.
C.

Corporation; Definition, (Section 2 of Batas Pambansa 68)
Classes of Corporation, (Section 3 of Batas Pambansa 68)
Corporations Created by Special Charters, (Section 4 of Batas Pambansa 68)

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Juco vs. NLRC, G. R. 98107, Aug. 18, 1997

D.

Classification of Shares, (Section 6 of Batas Pambansa 68)

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Castillo, et al. vs. Balinghasay, et al., G. R. No. 150976, October 18, 2004
Republic Planters Bank vs. Agana, G. R. No. 51765, March 3, 1997

E.

Founder's Shares, (Section 7 of Batas Pambansa 68)

F.

Treasury Shares, (Section 9 of Batas Pambansa 68)

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San Miguel Corporation et al. vs. Sandiganbayan, G. R. Nos. 104637-38, September 14, 2000
Soriano III vs. Yuzon, G. R. No. L-74910, Aug. 10, 1988
CIR vs. Manning, G. R. No. L-28398, Aug. 6, 1975

Incorporation and Organization of Private Corporations
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Ruby Industrial Corp. vs. Court of Appeals, G. R. Nos. 124185-87, January 20, 1998
Caram vs. CA, G. R. No. L-48627, June 30, 1987
Cervantes vs. Auditor General, G. R. No. L-4043, May 26, 1952
Cruz vs. Dalisay, Adm. Matter No. R-181-P, July 31, 1987
National Coal Co. vs. Collector of Internal Revenue, G. R. No. L-22619, December 2, 1924
Remo, Jr. vs. IAC, G. R. No. 67626, April 26, 1989
Rustan Pulp and Paper Mills vs. IAC, G. R. No. 70789, October 19, 1992
Soriano vs. IAC, G. R. No. 49834, June 22, 1989
Sulo ng Bayan vs. Araneta, G. R. No. L-31061, August 17, 1976

A.
Numbers and Qualifications of Incorporations, (Section 10 of Batas Pambansa 68)
B.
Corporate Term, (Section 11 of Batas Pambansa 68)
C.
Minimum Capital Stock Required of Stock Corporations, (Section 12 of Batas Pambansa 68)
D.
Amount of Capital Stock to be subscribed and paid for purposes of Incorporation (Section 13 of Batas
Pambansa 68)
E.

Contents of Articles of Incorporation (Section 14 of Batas Pambansa 68)

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Red Line Transit vs. Rural Transit, G. R. No. 41570, September 6, 1934
Uy Siulong vs. Dir. of Commerce, G. R. No. 15429, December 1, 1919
Asuncion vs. De Yriarte, G. R. No. 9321, September 24, 1914

F.
Form of Articles of Incorporation (Section 15 of Batas Pambansa 68)
G.
Amendment of Articles of Incorporation (Section 16 of Batas Pambansa 68)
H.
Grounds when Articles of Incorporation or Amendment may be rejected or disapproved (Section 17 of
Batas Pambansa 68)
I.

Corporate Name (Section 18 of Batas Pambansa 68)

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Industrial Refractories Corporation vs. Court Of Appeals, G. R. No. 122174, October 3, 2002
Laureano vs. Bormaheco, Inc., G. R. No. 137619, February 6, 2001

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Shangri-La International Hotel vs. CA, G. R. No. 111580 & 114802, June 21, 2001
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Ang Mga Kaanib sa Iglesia ng Dios kay Cristo Hesus vs. Iglesia ng Dios Kay Cristo Jesus, G. R. No.
137592, December 12, 2001
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Lyceum of the Phil. vs. CA, G. R. No. 101897, March 5, 1993
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Laureano Investment & Development Corp. vs. CA, G. R. No. 100468, May 6, 1997
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GTEB vs. CA, G. R. Nos. 114711 & 115889, February 13, 1997
J.

Commencement of Corporate Existence (Section 19 of Batas Pambansa 68)

K.

De Facto Corporations (Section 20 of Batas Pambansa 68)

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Malabang vs. Benito, G. R. No. L-28113, March 28, 1969
Hall vs. Piccio, G. R. No. L-2598, June 29, 1950

L.

Corporation by Estoppel (Section 21 of Batas Pambansa 68)

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Lim Tong Lim vs. Phil. Fishing Gear Industries, G. R. No. 136448, November 3, 1999
Lozano vs. De Los Santos, et al., G. R. No. 125221, June 19, 1997
Albert vs. University, G. R. No. L- 19118, January 30, 1965
Asia Banking Corp. vs. Standard, G. R. No. L-22106, September 11, 1924
Chiang Kai Shek vs. CA, G. R. No. 58028, April 18, 1989
Communication Materials vs. CA, G. R. No. 102223, August 22, 1996
Georg vs. Isnani, G. R. No. 109272, August 10, 1994
Lozano vs. De Los Santos, G. R. No. 125221, June 19, 1997
People vs. Garcia, G. R. Nos. 64867-68, April 17, 1989
Salvatierra vs. Garlitos, G. R. No. L-11442, May 23, 1958

M.
Effects of Non-Use of Corporate Charter and Continuous Inoperation Piercing the Veil of Corporation
Fiction (Section 22 of Batas Pambansa 68)
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R & E Transport, et al. vs. Latag, G. R. No. 155214, February 13, 2004
Lipat, et al. vs. Pacific Banking Corp., et al., G. R. No. 142435, April 30, 2003
Phil. National Bank, et al. vs. Andrada Electric & Engineering Co., G. R. No. 142936, April 17, 2002
De Leon, et al. vs. NLRC, et al., G. R. No. 112661, May 30, 2001
Phil. National Bank vs. Ritratto Group Inc., et al., G. R. No. 142616, July 31, 2001
Francisco, et al. vs. Mejia, G. R. No. 141617, August 14, 2001
ARB Construction Co., Inc., et al., vs. Court of Appeals, et al., G. R. No. 126554, May 31, 2000
Lim vs. Court of Appeals, et al., G. R. No. 124715, January 24, 2000
A.C. Ransom Labor Union vs. NLRC, G. R. No. L-69494, May 29, 1987
A.D. Santos vs. Vasquez, G. R. No. L-23586, March 20, 1968
Arnold vs. Willits and Patterson Ltd., G. R. No. 20214, March 17, 1923
Atillo vs. CA, G. R. No. 119053, January 23, 1997
Cease vs. CA, G. R. No. L-33172, October 18, 1979
Claparols vs. CIR, G. R. No. L-30822, July 31, 1975
Commissioner of Internal Revenue vs. Norton, G. R. No. L-17618, August 31, 1964
Concept Builders, Inc. vs. NLRC, G. R. No. 108734, May 29, 1996
Delpher Trades vs. IAC, G. R. No. L-69259, January 26, 1988
Del Rosario vs. NLRC, G. R. No. 85416, July 24, 1990
Emilio Cano Enterprises Inc. vs. CIR, G. R. No. L-20502, February 26, 1965
Gregorio Araneta Inc. vs. Tuason de Paterno, G. R. No. L-2886, August 22, 1952
Indophil Textile vs. Calica, G. R. No. 96490, February 3, 1992
Koppel (Phil.) vs. Yatco, G. R. No. L-47673, October 10, 1946
La Campana Coffee Factory vs. Kaisahan, G. R. No. L-5677, May 25, 1953
Laguna Transportation Co. vs. SSS, G. R. No. L-14606, April 28, 1960
Liddell & Co. vs. CIR, G. R. No. L-9687, June 30, 1961
Madrigal Shipping vs. Ogilvie, G. R. No. L-8431, October 30, 1958

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Marvel Building vs. David, G. R. No. L-5081, February 24, 1954
Matuguina Integrated Wood Products vs. CA, G. R. No. 98310, October 24, 1996
McConnel vs. CA, G. R. No. L-10510, March 17, 1961
NAFFLU vs. Ople, G. R. No. L-68661, July 22, 1986
NAMARCO vs. Associated Finance, G. R. No. L-20886, April 27, 1967
Palacio vs. Fely Transportation, G. R. No. L-15121, August 31, 1962
Phivedec vs. CA, G. R. No. 85266, January 31, 1990
R.F. Sugay vs. Reyes, G. R. No. L-20451, December 28, 1964
Ramirez Telephone vs. Bank of America, G. R. No. L-22614, August 29, 1969
San Teodoro Dev’t. Ent. vs. SSS, G. R. No. L-17662, May 30, 1963
Sol Laguio vs. NLRC, G. R. No. 108936, October 4, 1996
Tan Boon Bee vs. Jarencio, G. R. No. L-41337, June 30, 1988
Telephone Engineering Services vs. WCC, G. R. No. L-28694, May 13, 1981
Traders Royal Bank vs. CA, G. R. No. 93397, March 3, 1997
Umali vs. Court of Appeals, G. R. No. 89561, November 13, 1990
Villa Rey Transit vs. Ferrer, G. R. No. L-23893, October 29, 1968
Yu vs. NLRC, G. R. No. 111810-11, June 16, 1995
Yutivo Sons Hardware vs. CTA, G. R. No. L-13203, January 28, 1961

Promoter’s Contracts Prior to Incorporation
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Pioneer Insurance vs. CA, G. R. No. 84197 & 84157, July 28, 1989
Rizal Light & Ice vs. Municipality of Morong, G. R. No. L-20993 and L-21221, September 18, 1968
Cagayan Fishing Development vs. Sandiko, G. R. No. 43350, December 23, 1937

Board of Directors/Trustees/Officers
A.

The Board of Director/Trustees (Section 23 of Batas Pambansa 68)

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Powers
Woodchild Holdings vs. Roxas Electric and Const. Co., G. R. No. 140667, August 12, 2004
Inter-Asia Investments Industries, Inc. vs. Court Of Appeals, et al, G. R. No. 125778, June 10, 2003
Great Asian Sales Center Corp., et al. vs. Court Of Appeals, et al., G. R. No. 105774, April 25, 2002
AF Realty & Development vs. Dieselman Freight Services, G. R. No. 111448, January 16, 2002
Baretto vs. La Previsora, G. R. No. 34719, December 8, 1932
Gamboa vs. Victoriano, G. R. No. L-40620, May 5, 1979
Lopez vs. Ericta, G. R. No. L-32991, June 29, 1972

2.
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Qualifications
Detective and Protective vs. Cloribel, G. R. No. L-23428, November 29, 1968
Gokongwei vs. SEC, G. R. No. L-45911, April 11, 1979
Grace Christian vs. Court of Appeals, G. R. No. 108905, October 23, 1997
Lee vs. CA, G. R. No. 93695, February 4, 1992

B.

Election of Directors or Trustees (Section 24 of Batas Pambansa 68)

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Tramat Mercantile vs. CA, G. R. No. 111008, November 7, 1994
Bataan Shipyard vs. PCGG, G. R. No. 75885, May 27, 1987
Dy vs. NLRC, G. R. No. L- 68544, October 27, 1986
Grace Christian vs. Court of Appeals, G. R. No.108905, October 23, 1997
Lopez Realty vs. Fontecha, G. R. No. 76801, August 11, 1995
MAM Realty vs. NLRC, G. R. No. 114787, June 2, 1995
P.S.B.A. vs. Lacandola Leano, G. R. No. L-58468, February 24, 1984
Ponce vs. Encarnacion, G. R. No. L-5883, November 28, 1953
Pua Casim vs. Newark, G. R. No. L-21644. October 2, 1924
Sales vs. SEC, G. R. No. 54330, January 13, 1989

C.

Corporate Officers (Section 25 of Batas Pambansa 68)

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Dily Dany Nacpil vs. International Broadcasting Corp., G. R. No. 144767, March 21, 2002
Citibank vs. Chua, G. R. No. 102300, March 17, 1993
Acuña vs. Batac Producers, G. R. No. L-20333, June 30, 1967
The Board of Liquidators vs. Heirs of Kalaw, G. R. No. L-18805, August 14, 1967
Ingco vs. Sandiganbayan, G. R. No. 112584, May 23, 1997
Ramirez vs. Orientalist Co., G. R. No. 11897, September 24, 1918

D.

Report of Election of Directors, Trustees and Officers (Section 26 of Batas Pambansa 68)

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Monfort Hermanos Agricultural. vs. Monfort III, et al., G. R. No. 152542, July 8, 2004
Premium vs. CA, G. R. No. 96551, November 4, 1996

E.

Disqualification of Directors, Trustees or Officers (Section 27 of Batas Pambansa 68)

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Grace Christian vs. Court of Appeals, G. R. No. 108905, October 23, 1997
Gokongwei vs. SEC, G. R. No. L-45911, April 11, 1979

F.

Removal of Directors or Trustees (Section 28 of Batas Pambansa 68)

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Roxas vs. De la Rosa, G. R. No. 26555, November 16, 1926

G.

Vacancies in the Office of Director or Trustees (Section 29 of Batas Pambansa 68)

H.

Composition of Directors (Section 30 of Batas Pambansa 68)

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Western Institute vs. Salas, G. R. No. 113032, August 21, 1997
Central Cooperative vs. Tibe, G. R. No. L-27972, June 30, 1970
Central Cooperative Exchange vs. Enciso, G. R. No. L-35603, June 28, 1988
Government vs. El Hogar, G. R. No. 26649, July 13, 1927
Lingayen vs. Baltazar, G. R. No. L-4824, June 30, 1953

I.

Liability of Directors, Trustees or Officer (Section 31 of Batas Pambansa 68)

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Atrium Management Corp. vs. CA, et al., G. R. No. 109491, February 28, 2001
A.C. Ransom Labor vs. NLRC, G. R. No. L-69494, June 10, 1986
AHS/Philippines vs. CA, G. R. No. 111807, June 14, 1996
Angeles vs. Santos, G. R. No. 43413, August 31, 1937
Chua vs. NLRC, G. R. No. 81450, February 15, 1990
De Guzman vs. NLRC, G. R. No. 90856, February 1, 1996
Gokongwei vs. SEC, G. R. No. L-45911, April 11, 1979
Maglutac vs. NLRC, G. R. No. 78345, September 21, 1990
Mead vs. McCullough, G. R. No. 6217, December 20, 1911
Midas Touch vs. NLRC, G. R. No. 111639, July 29, 1996
Montelibano vs. Bacolod Murcia, G. R. No. L-15092, May 18, 1962
PNB vs. CA, G. R. No. L-27155, May 18, 1978
Santos vs. NLRC, G. R. No. 101699, March 13, 1996
Steinberg vs. Velasco, G. R. No. 30460, March 12, 1929
Strong vs. Repide, G. R. No. 7154, February 21, 1912
Sunio vs. NLRC, G. R. No. L-57767, January 31, 1984
Tramat vs. CA, G. R. No. 111008, November 7, 1994
Aurora Land Projects Corp. vs. NLRC, G. R. No. 114733, January 2, 1997
Aguenza vs. Metropolitan Bank, G. R. No. 74336, April 7, 1997

J.

Dealings of Directors, Trustees or Officers (Section 32 of Batas Pambansa 68)

K.
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Contracts Between Corporation with Interlocking Directors (Section 33 of Batas Pambansa 68)
Gokongwei vs. SEC, G. R. No. L-45911, April 11, 1979

L.
M.

Disloyalty of a Director (Section 34 of Batas Pambansa 68)
Executive Committee (Section 35 of Batas Pambansa 68)

Derivative Actions
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Francis Chua vs. Court of Appeals, et al., G. R. No. 150793, November 19, 2004
Gochan, et al. vs. Young, et al., G. R. No. 131889, March 12, 2001
BA Savings Bank vs. Sia, et al., G. R. No. 131214, July 27, 2000
Rural Bank of Milaor vs. Ocfemia, et al., G. R. No. 137686, February 8, 2000
FCY Construction Group, Inc. vs. Court of Appeals, et al., G. R. No. 123358, February 1, 2000
ARB Construction Co. Inc., vs. Court of Appeals, et al., G. R. No. 126554, May 31, 2000
Chase vs. CFI, G. R. No. L-20457, October 29, 1966
Evangelista vs. Santos, G. R. No. L-1721, May 19, 1950
Gamboa vs. Victoriano, G. R. No. L-40620, May 5, 1979
Pascual vs. Orozco, G. R. No. L-5174, March 17, 1911
Republic Bank vs. Cuaderno, G. R. No. L-22399, March 30, 1967
Reyes vs. Tan, G. R. No. L-16982, September 30, 1961
San Miguel Corp. vs. Khan, G. R. No. 85339, August 11, 1989
Aurbach vs. Sanitary Wares, G. R. No. 75875 & 75951, December 15, 1989
Francisco Aleja vs. GSIS, G. R. No. L-18529, February 26, 1965
Ingersoll vs. Malabon Sugar, G. R. No. 27770 December 31, 1927
NIDC vs. Aquino, G. R. No. L-34192 & L-34213, June 30, 1988
Sing Juco vs. Suyantong, G. R. No. L-17131, June 30, 1922
Yu Chuck vs. Kong Lipo, G. R. No. L-22450, December 3, 1924

Powers of Corporation
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Section 36-45 of Batas Pambansa 68
Twin Towers Condominium Corp. vs. Court of Appeals, et al., G. R. No. 123552, February 27, 2003
Pilipinas Loan Company vs. SEC, et al., G. R. No. 104720, April 4, 2001
Carlos vs. Mindoro Sugar, G. R. No. 36207, October 26, 1932
Government of the Phil vs. El Hogar, G. R. No. 26649, July 13, 1927
Harden vs. Benguet, G. R. No. 37331, March 18, 1933
Pirovano vs. Dela Rama, G. R. No. L-5377, December 29, 1954
Republic vs. Acoje Mining, G. R. No. L-18062, February 28, 1963
Atrium Management Corp. v. CA, G. R. No. 109491, February 28, 2001
Islamic Directorate of the Phils., et al. vs. Court of Appeals, et al., G. R. No. 117897, May 14, 1997

A.

Specific Powers

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Power to Deny Pre-Emptive Right
PCGG vs. SEC, G. R. No. L-77816 & 78753, June 30, 1988
Benito vs. SEC, G. R. No. L-56655, July 25, 1983

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Power to sue and be sued
R. Transport vs. CA, G. R. No. 111187, February 1, 1995
Delta Motors vs. Mangosing, G. R. No. L-41667, April 30, 1976
Republic vs. Ker, G. R. No. L-21609, September 29, 1966

3.
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Extending or Shortening of Term; Increase and Decrease of Capital Stock
Madrigal vs. Zamora, G. R. Nos. L-49023 & L-48237, June 30, 1987

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Philtrust vs. Rivera, G. R. No. 19761, January 29, 1923

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Power to Invest Funds
Dela Rama vs. Ma-ao Sugar Central, G. R. Nos. L-17504 & L-17506, February 28, 1959
Gokongwei vs. SEC, G. R. No. L-45911, April 11, 1979

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Power to Acquire and Alienate Property
Luneta Motors vs. A. D. Santos, G. R. No. L-17716, July 31, 1962

6.
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Power to Declare Dividends
Steinberg vs. Velasco, G. R. No. 30460, March 12, 1929
Nielson & Co. vs. Lepanto Consolidated, G. R. No. L-21601, December 28, 1968
Commissioner vs. Manning, G. R. No. L-28398, August 6, 1975

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Power to Enter into Management Contract
Nielson & Co. vs. Lepanto Consolidated, G. R. No. L-21601, December 28, 1968

8.
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Power to Enter into Partnership; Joint Venture
Tuason vs. Bolaños, G. R. No. L-4935, May 28, 1954

9.
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To Purchase Own Shares
Boman Environmental Dev’t. Corp. vs. CA, G. R. No. 77860, November 22, 1988

10.
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Power to Sell All or Substantially All of its Assets
Esguerra vs. Court of Appeals, G. R. No. 119310, February 3, 1997

B.

Implied Powers

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Teresa Electric vs. PSC, G. R. No. L-21804, September 25, 1967

By-Laws
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Sections 46-48 of Batas Pambansa 68
Azores vs. SEC, G. R. No. 112337, January 25, 1996
Chung Ka Bio vs. IAC, G. R. No. L-71837, July 26, 1988
Fleischer vs. Botica Nolasco, G. R. No. 23241, March 14, 1925
Gokongwei vs. SEC, G. R. No. L-45911, April 11, 1979
Government of the P.I. vs. El Hogar, G. R. No. 26649, July 13, 1927
Grace Christian High School vs. Court of Appeals, G. R. No. 108905, October 23, 1997
Loyola Grand vs. CA, G. R. No. 117188, August 7, 1997
PMI Colleges vs. NLRC, G. R. No. 121466, August 15, 1997
Western Institute vs. Salas, G. R. No. 113032, August 21, 1997

Meetings
A.

Kinds of Meetings (Section 49 of Batas Pambansa 68)

1.
3.

Regular Meetings
Special Meetings

B.

Place and Time of Meeting of Stockholders or Members (Section 51 of Batas Pambansa 68)

C.

Quorum in Meetings (Section 52 of Batas Pambansa 68)

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Board of Liquidators vs. Tan, G. R. No. L-12282, March 31, 1959
Lopez vs. Ericta, G. R. No. L-32991, June 29, 1972

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Ponce vs. Encarnacion, G. R. No. L-5883, November 28, 1953

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Definition of Quorum
Javellana vs. Tayo, G. R. No. L-18919, December 29, 1962

D.
E.
F.
G.

Who Shall Preside at Meeting (Section 54 of Batas Pambansa 68)
Right to Vote of Pledgers, Mortgagors, and Administrators (Section 55 of Batas Pambansa 68)
Voting in case of joint Ownership of Stock (Section 56 of Batas Pambansa 68)
Voting Right for Treasury Shares (Section 57 of Batas Pambansa 68)

H.

Proxies (Section 58 of Batas Pambansa 68)

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Voting Trusts (Section 59 of Batas Pambansa 68)
Everett vs. Asia Banking Corp.G. R. No. 25241, November 3, 1926
Lee vs. CA, G. R. No. 93695, February 4, 1992
NIDC vs. Aquino, G. R. No. L-34192 & L-34213, June 30, 1988

Stocks and Stockholders
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Jacinto, et al. vs. First Women's Credit Corp., G. R. No. 154049, August 28, 2003
TCL Sales Corporation vs. CA, G. R. No. 129777, January 5, 2001
Mirasol vs. Court of Appeals, G. R. No. 128448, February 1, 2001
Gochan vs. Young, G. R. No. 131889, March 12, 2001
Lim vs. Patricia Lim-Yu, G. R. No. 138343, February 19, 2001
PCGG vs. Sandiganbayan, G. R. No. 103797, August 30, 2000
Phil. Aluminum Wheels vs. FASGI Enterprises, G. R. No. 137378, October 12, 2000
Heirs of Ramon Durano vs. Sepulveda Uy, G. R. No. 136456, October 24, 2000
Reynoso vs. CA, GR Nos. 116124-25, November 22, 2000
Republic vs. Africa, G. R. No. 128606, December 4, 2000
Ramoso vs. CA, G. R. No. 117416, December 8, 2000
Roy Nicolas vs. Court of Appeals, G. R. No. 122857, March 27, 1998

A.
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Subscription Contracts (Section 60 of Batas Pambansa 68)
Yong, et al. vs.Tiu, et al., G. R. No. 144476, April 8, 2003
Bayla vs. Silang Traffic, G. R. No. 48195 & 48197, May 1, 1942
PNB vs. Bitulok Sawmill, G. R. No. L-24177-85, June 29, 1968
Trillana vs. Quezon College, G. R. No. L-5003, June 27, 1953
Velasco vs. Poizat, G. R. No. L-11528, March 15, 1918

B.

Consideration for Stocks (Section 62 of Batas Pambansa 68)

C.

Certificate of Stock and Transfer of Shares (Section 63 of Batas Pambansa 68)

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Republic vs. Sandiganbayan et al, G. R. No. 107789, April 30, 2003
Ponce vs. Alsons Cement Corporation, et al., G. R. No. 139802, December 10, 2002
BLTB, et al vs. Bitanga et al, G. R. 137934, August 10, 2001
Garcia vs. Jomouad, et al., G. R. No. 133969, January 26, 2000
Baltazar vs. Lingayen Gulf Electric, G. R. No. L-16236-38, June 30, 1965
Escaño vs. Filipinas Mining Corp., G. R. No. 49003, July 28, 1944
Fleischer vs. Botica Nolasco, G. R. No. 23241, March 14, 1925
Hager vs. Bryan, G. R. No. L-6230, March 21, 1911
Santamaria vs. HSBC, G. R. No. L-2808, August 31, 1951
Labrador vs. CA, G. R. No. 58168, December 19, 1989
Lambert vs. Fox, G. R. No. 7991, January 29, 1914
Salinas vs. CA, G. R. No. 96674, June 26, 1992
Uson vs. Diosomito, G. R. No. 42135, June 17, 1935

D.

Issuance of Stock Certificates (Section 64 of Batas Pambansa 68)

E.

Liability of Directors for Watered Stocks (Section 65 of Batas Pambansa 68)

—
—

Lirag Textile Mills vs. SSS, G. R. No. L-33205, August 31, 1987
Nava vs. Peers Marketing, G. R. No. L-28120, November 25, 1976

F.
G.
H.
I.

Pre-Incorporation Subtraction
Consideration for Stocks
Interest on unpaid subscription (Section 66 of Batas Pambansa 68)
Payment of Balance of Subscription (Section 67 of Batas Pambansa 68)

J.

Delinquency of Sale (Section 68 of Batas Pambansa 68)

—
—
—
—
—
—

Nava vs. Peers Marketing, G. R. No. L-28120, November 25, 1976
De Silva vs. Aboitiz & Co., G. R. No. 19893, March 31, 1923
Fua Cun vs. Summers, G. R. No. 19441, March 27, 1923
Garcia vs. Suarez, G. R. No. 45493, April 21, 1939
Miranda vs. Tarlac Rice Mill, G. R. No. 35961, December 2, 1932
Phil. Trust Co. vs. Rivera, G. R. No. 19761, January 29, 1923

K.

When sale maybe questioned (Section 69 of Batas Pambansa 68)

L.

Court action to recover unpaid subscription (Section 70 of Batas Pambansa 68)

—

Apodaca vs. NLRC, G. R. No. 80039, April 18, 1989

M.

Effect of Delinquency (Section 71 of Batas Pambansa 68)

—

Baltazar vs. Lingayen, G. R. No. L-16236, June 30, 1965

N.
O.

Rights of paid shares
Lost or Destroyed Certificates (Section 73 of Batas Pambansa 68)

Corporate Books and Records
—
—
—
—
—
—
—
—

Africa vs. PCGG, G. R. No. 83831 & 85597, January 9, 1992
Gokongwei vs. SEC, G. R. No. L-45911, April 11, 1979
Gonzales vs. PNB, G. R. No. L-33320, May 30, 1983
Pardo vs. Hercules Lumber Co., G. R. No. 22442, August 1, 1924
Philpotts vs. PMC, G. R. No. 15568, November 8, 1919
Veraguth vs. Isabella Sugar, G. R. No. 37064, October 4, 1932
W.G. Philpotts vs. PMC, G. R. No. 15568, November 8, 1919
Capitol College of Iligan, Inc. vs. CA, G. R. No. 128941, January 29, 1999

A.
B.

Books to be kept; stock transfer agent
Right to financial statements

Merger and Consolidation
A.
—
—
—
—

Merger; Definition (Section 76 of Batas Pambansa 68)
Associated Bank vs. CA, G. R. No. 123793, June 29,1998
CIR vs. Rufino, G. R. No. L-33665-68, February 27, 1987
Edward vs. Pacific, G. R. No. L-20850, November 29, 1965
Solid vs. Bio Hong, G. R. No. 90596, April 8, 1991

B.
Stockholder's or Members' Approval (Section 77 of Batas Pambansa 68)
C.
Articles of Merger or Consolidation (Section 78 of Batas Pambansa 68)
D.
Securities and Exchange Commission's Approval and Effectivity of Merger or Consolidation (Section
79 of Batas Pambansa 68)
E.

Effects of Merger or Consolidation (Section 80 of Batas Pambansa 68)

—

Chester Babst vs. CA, G. R. Nos. 99398 & 104625, January 26, 2001

Appraisal Right
A.
B.
C.
D.
E.
F.

Instances of Appraisal Right (Section 81 of Batas Pambansa 68)
How Right is Exercised (Section 82 of Batas Pambansa 68)
Effect of Demand and Termination of Right (Section 83 of Batas Pambansa 68)
Where Right to Payment Ceases (Section 84 of Batas Pambansa 68)
Who Bears Costs of Appraisal (Section 85 of Batas Pambansa 68)
Notation on Certificates (Section 86 of Batas Pambansa 68)

Non-Stock Corporation
A.

Definition (Section 87 of Batas Pambansa 68)

B.

Purposes (Section 88 of Batas Pambansa 68)

—
—
—
—

Chinese YMCA vs. Ching, G. R. No. L-36929, June 18, 1976
Collector vs. Club Filipino Inc. de Cebu, G. R. No. L-12719, May 31, 1962
Collector vs. Univ. of Visayas, G. R. No. L-13554, February 28, 1961
PPSTA v. Apostol, G.R. No. L-36966, February 28, 1974

Members
A.

Right to vote (Section 87 of Batas Pambansa 68)

B.

Non-Transferability of Membership (Section 90 of Batas Pambansa 68)

C.

Termination of Membership (Section 91 of Batas Pambansa 68)

—

Alfredo Long et al. vs. Lydia Basa et al., G.R. Nos. 134963-64, September 27, 2001

Trustees and Officers
A.

Election and Term of Trustees (Section 92 of Batas Pambansa 68)

—

Lions Club International, et al. vs. Augusto M. Amores, et al., G. R. No. L-61259, April 26, 1983

B.

Place of Meetings (Section 93 of Batas Pambansa 68)

Distribution of Assets in Non-Stock Corporation
A.
B.

Rules for Distribution (Section 94 of Batas Pambansa 68)
Plan of Distribution of Assets (Section 95 of Batas Pambansa 68)

Close Corporations
A.

Definition and Applicability of Title (Section 96 of Batas Pambansa 68)

B.
Articles of Incorporation (Section 97 of Batas Pambansa 68)
C.
Validity of Restrictions on Transfer of Shares (Section 98 of Batas Pambansa 68)
D.
Issuance of Transfer of Stock of a Close Corporation in Breach of Qualifying Conditions (Section 99
of Batas Pambansa 68)
E.
Agreements by Stockholder (Section 100 of Batas Pambansa 68)
F.
When Board Meeting is Unnecessary (Section 101 of Batas Pambansa 68)
G.
Pre-emptive Right in Close Corporation (Section 102 of Batas Pambansa 68)
H.
Amendment of Articles of Incorporation (Section 103 of Batas Pambansa 68)
I.
Deadlocks (Section 104 of Batas Pambansa 68)
J.
—
—

Withdrawal of Stockholder or Dissolution of Corporation (Section 105 of Batas Pambansa 68)
Dulay vs. CA, G. R. No. 91889, August 27, 1993
Financing Corp. vs. Teodoro, G. R. No. L-4900, August 31, 1953

Special Corporations
A.

Educational Corporations

1.
3.
5.

Incorporation (Section 106 of Batas Pambansa 68)
Pre-requisites to Incorporation (Section 107 of Batas Pambansa 68)
Board of Trustees (Section 108 of Batas Pambansa 68)

Religious Corporations
1.

Classes of Religious Corporations (Section 109 of Batas Pambansa 68)

a.

Religious Societies (Section 116 of Batas Pambansa 68)

b.
—
—
—

Corporation Sole (Section 110 of Batas Pambansa 68)
Director of Lands vs. CA, G. R. No. L-56613, March 14, 1988
Republic vs. Intermediate Appellate Court, G. R. No. L-68303, January 15, 1988
Roman Catholic vs. LRC, G. R. No. L-8451, December 20, 1957

2.
3.
4.
5.
6.

Articles of Incorporation (Section 111 of Batas Pambansa 68)
Submission of the Articles of Incorporation (Section 112 of Batas Pambansa 68)
Acquisition and Alienation of Property (Section 113 of Batas Pambansa 68)
Filling of Vacancies (Section 114 of Batas Pambansa 68)
Dissolution (Section 115 of Batas Pambansa 68)

Dissolution
A.
B.
C.
D.

Methods of Dissolution (Section 117 of Batas Pambansa 68)
Voluntary dissolution where no creditors are affected (Section 118 of Batas Pambansa 68)
Voluntary dissolution where creditors are affected (Section 119 of Batas Pambansa 68)
Dissolution by shortening corporate term (Section 120 of Batas Pambansa 68)

E.

Involuntary Dissolution (Section 121 of Batas Pambansa 68)

—
—
—
—
—
—

Republic vs. Security Credit, G. R. No. L-20583, January 23, 1967
Daguhoy vs. Ponce, G. R. No. L-6515, October 18, 1954
Financing vs. Teodoro, G. R. No. L-4900, August 31, 1953
Government vs. El Hogar, G. R. No. 26649, July 13, 1927
Government vs. Phil. Sugar Estates, G. R. No. 11789, April 2, 1918
Republic vs. Bisaya Land, G. R. No. L-31490, January 6, 1948

F.

Liquidation of Corporate Assets (Section 122 of Batas Pambansa 68)

—
—
—
—
—
—
—

Pepsi-Cola Products Phil Inc. vs. Court Of Appeals, et al., G. R. No. 145855, November 24, 2004
Yong, et al. vs. Tiu, et al., G. R. No. 144476, April 8, 2003
Phil. Veterans Bank Employees Union-N.U.B.E. vs. Benjamin Vega, G. R. No. 105364, June 28, 2001
Buenaflor vs. Camarines Industry, G. R. No. L-14991-94, May 30, 1960
Gelano vs. CA, G. R. No. L-39050, February 24, 1981
National Abaca Corp v. Pore, G. R. No. L-16779, August 16, 1961
Tan Tiong Bio vs. Bureau of Internal Revenue, G. R. No. L-8800, October 23, 1956

G.

Methods of Liquidation

—
—
—
—
—
—

Chung Ka Bio vs. IAC, G. R. No. L-71837, July 26, 1988
Alhambra Cigar vs. SEC, G. R. No. L-23606, July 29, 1968
Cebu Portland Labor vs. States Marine, G. R. No. L-9350, May 20, 1957
China Banking Corp vs. Michelin, G. R. No. 36930, June 30, 1933
Republic vs. Marsman Dev't Co.,G. R. No. L-18956, April 27, 1972
Sumera vs. Valencia, G. R. No. 45486, May 3, 1939

Foreign Corporations
A.
—

Definition and rights of foreign corporation (Section 123 of Batas Pambansa 68)
Avon vs. CA, G. R. No. 97642, August 29, 1997

B.
C.
D.
E.
F.

Application to existing foreign corporations (Section 124 of Batas Pambansa 68)
Application for a license (Section 125 of Batas Pambansa 68)
Issuance of a license (Section 126 of Batas Pambansa 68)
Who may be a resident agent (Section 127 of Batas Pambansa 68)
Resident agent; Service process (Section 128 of Batas Pambansa 68)

G.

Law applicable (Section 129 of Batas Pambansa 68)

—

Grey vs. Insular Lumber Co., G. R. No. 45144, April 3, 1939

H.

Amendments to articles of incorporation or by-laws (Section 130 of Batas Pambansa 68)

I.

Amendment of license (Section 131 of Batas Pambansa 68)

—
—
—
—
—
—

Schmid and Oberly vs. RJL, G. R. No. 75198, October 18, 1988
Bulakhidas vs. Navarro, G. R. No. L-49695, April 7, 1986
Top-Weld Mfg. vs. ECED, G. R. No. L-44944, August 9, 1985
Aetna Casualty vs. Pacific Star, G. R. No. L-26809, December 29, 1977
Claude Neon Lights vs. Phil. Advertising, G. R. No. 37682, November 26, 1932
Phil. Products vs. Primateria Societe Anonyme, G. R. No. L-17160, November 29, 1965

J.

Merger or consolidation involving a foreign corp (Section 132 of Batas Pambansa 68)

K.

Doing business without a license (Section 133 of Batas Pambansa 68)

—
—
—
—
—
—
—
—

Hahn vs. Court of Appeals, G. R. No. 113074, January 22, 1997
Eriks Pte.Ltd. vs. Court of Appeals, G. R. No. 118843, February 6, 1997
Avon Insurance vs. Court of Appeals, G. R. No. 97642, August 21, 1997
Antam vs. Court of Appeals, G. R. No. L-61523, July 31, 1986
Commissioner vs. Gani, G. R. No. 73722, February 26, 1990
Far East International vs. Kogyo, G. R. No. L-13525, November 30, 1962
Facilities Management vs. de la Osa, G. R. No. L-38649, March 26, 1979
Hang Lung vs. Saulog, G. R. No. 73765, August 20, 1991

—
—
—
—

Marshall Wells vs. Elser, G. R. No. L-22015, September 1, 1924
Mentholatum vs. Mangaliman, G. R. No. 47701, June 27, 1941
Swedish East vs. Manila Port, G. R. No. L-26332, October 26, 1968
Western Equipment & Supply Co. vs. Reyes, G. R. No. 27897, December 2, 1927

1.
—
—
—
—
—
—
—

Exception
Atlantic Mutual vs. Cebu, G. R. No. L-18961, August 31, 1966
Eriks vs. Court of Appeals, G. R. No. 118843, February 6, 1997
Facilities vs. Dela Osa, G. R. No. L-38649, March 26, 1979
Home Insurance vs. Eastern Shipping, G. R. No. L-34382-83, July 20, 1983
Phil Columbia vs. Lantin, G. R. No. L-29072, June 7, 1971
Puma Sportschufabriken vs. Intermediate Appellate Court, G. R. No. L-75067, February 26, 1988
Signetics vs. Court of Appeals, G. R. No. 105141, August 31, 1993

Other Cases on Doing Business:
—
Agilent Technologies vs. Integrated Silicon, et al., G.R. No. 154618, April 14, 2004
—
Lorenzo Shipping Corp. vs. Chubb and Sons, Inc., et al., G. R. No. 147724, June 8, 2004
—
European Resources, et al. vs. Ingenieuburo Birkhahn + Nolte, et al., G. R. No. 159586, July 26, 2004
—
MR Holdings, Ltd. vs. Sheriff Carlos P. Bajar, et al., G. R. No. 138104, April 11, 2002
—
Subic Bay Metropolitan Authority, et al. vs. Universal International, et al., G. R. No. 131680,
September 14, 2000
—
Hutchison Ports vs. Subic Bay Metropolitan Authority, et al., G. R. No. 131367, August 31, 2000
—
General Garments Corp. vs. Director, G. R. No. L-24295, September 30, 1971
—
Linger and Fisher GMBH vs. IAC, G. R. No. L-63557, October 28, 1983
—
Olympia Business Machines vs. E. Razon, G. R. No. L-75631, October 28, 1987
—
Times vs. Reyes, G. R. No. L-28882, May 31, 1971
—
Universal Rubber Products v. CA, G. R. No. L-30266, June 29, 1984
—
Communications Materials vs. Court of Appeals, et al., G. R. No. 102223, August 22, 1996
—
Gen. Corp of the Phil vs. Union Insurance, G. R. No. L-2684, September 14, 1950
L.
M.

Revocation of License (Section 134 of Batas Pambansa 68)
Issuance of Certificate of Revocation (Section 135 of Batas Pambansa 68)

Miscellaneous Provisions
—
—

Modern Paper Products, Inc. vs. Court of Appeals, G. R. No. 127166, March 2, 1998
Union Bank of the Philippines vs. Court of Appeals, G. R. No. 131729, May 19, 1998

A.
B.
C.
D.
E.
F.
G.
H.

Outstanding Capital Stock; Definition (Section 137 of Batas Pambansa 68)
Designation of Governing Boards (Section 138 of Batas Pambansa 68)
Incorporation and other fees (Section 139 of Batas Pambansa 68)
Stock ownership in certain corporation (Section 140 of Batas Pambansa 68)
Annual report of corporations (Section 141 of Batas Pambansa 68)
Confidential nature of examination results (Section 142 of Batas Pambansa 68)
Rule making power of the Securities and Exchange Commission (Section 143 of Batas Pambansa 68)
Violations of the Code (Section 144 of Batas Pambansa 68)

I.

Amendment or repeal (Section 145 of Batas Pambansa 68)

—

Rene Knecht snd Knecht, Inc. vs. United Cigarette Corp., G. R. No. 139370, July 4, 2002

J.
K.
L.

Repealing clause (Section 146 of Batas Pambansa 68)
Separability of provisions (Section 147 of Batas Pambansa 68)
Applicability to existing corporations (Section 148 of Batas Pambansa 68)

Cases involving the SEC:
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—

Sumndad vs. Harrigan, et al., G. R. No. 132358, April 12, 2002
Nacpil vs. International Broadcasting Corp., G. R. No. 144767, March 21, 2002
Fabia vs. Court of Appeals, et al., G. R. No. 132684, September 11, 2002
Abejo vs. Hon. Dela Cruz, G. R. No. L-63558 & L-68450-51, May 19, 1987
Aguinaldo vs. SEC, G. R. No. L-61377, June 30, 1988
Andaya vs. Abadia, G. R. No. 104033, December 27, 1993
DBP vs. Ilustre, G. R. No. L-57905, August 1, 1985
DMRC Enterprises vs. Este Del Sol, G. R. No. L-57936, September 28, 1984
Dy vs. NLRC, G. R. No. L-68544, October 27, 1986
Embassy Farms vs. CA, G. R. No. 80682, August 13, 1990
Lozon vs. NLRC, G. R. No. 107660, January 2, 1995
Magalad vs. Premier Corp., G. R. No. 87135, May 22, 1992
Malayan Integrated vs. Mendoza, G. R. No. L-75238, September 30, 1987
Orosa vs. CA, G. R. No. 76828-32, January 28, 1991
Ortigas vs. Ruiz, G. R. No. L-33952, March 9, 1987
Peneyra vs. IAC, G. R. No. 68935, January 22, 1990
Philex Mining vs. Reyes, G. R. No. L-57707, November 19, 1982
Phil. Pacific Fishing vs. Luna, G. R. No. 59070, March 15, 1982
PSBA vs. Leano, G. R. No. L-58468, February 24, 1984
Rivera vs. Florendo, G. R. No. L-60066 July 31, 1986
Rural Bank of Salinas vs. CA, G. R. No. 96674, June 26, 1992
Saavedra vs. SEC, G. R. No. L-80879, March 21, 1988
SEC v. CA, G. R. No. 93832, August 23, 1991
Sunset View Condo vs. Hon. Campos, G. R. Nos. L-52361 & L-52524, April 27, 1981
Tabang vs. NLRC, G. R. No. 121143, January 21, 1997
Torres vs. CA, G. R. No. 63046, June 21, 1990
Traders Royal Bank vs. CA, G. R. No. 78412, September 26, 1989
Union Glass vs. SEC, G. R. No. L-64013, November 28, 1983
Viray vs. CA, G. R. No. 92481, November 9, 1990
Zamora vs. CA, G. R. No. 78206, March 19, 1990
Garcia vs. Court of Appeals, G. R. No. 123639, June 10, 1997
Tolentino vs. Court of Appeals, G. R. No. 123445, October 6, 1997
Lozano vs. De los Santos, G. R. No. 125221, June 19, 1997
China Banking Corp. vs. Court of Appeals, G. R. No. 117604, March 26, 1997
Barotac Sugar Mills, Inc. vs. Court of Appeals, G. R. No. 123379, July 15, 1997
Philippine Stock Exchange vs. Court of Appeals, G. R. No. 125469, October 27, 1997
Western Institute of Technology vs. Salas, G. R. No. 113032, August 21, 1997

Suspension of Payments
—
—
—
—

Union Bank vs. CA, G. R. No. 131729, May 19, 1998
PCIB vs. CA, G. R. No. 76853, April 18, 1989
Alemar's vs. Elbinias, G. R. No. 75414, June 4, 1990
RCBC vs. IAC, G. R. No. 74851, September 14, 1992

Other Laws
—
RA 8799 (The Securities Regulation Code)
—
Implementing Rules and Regulations of the Securities Regulation Code
—
A.M. No. 01-2-04-SC, March 13, 2001, Proposed Interim Rules of Procedure Governing Intracorporate Controversies under RA. No. 8799
—
Rules and Regulations to Implement the Provisions of Republic Act No. 8556 (The Financing
Company Act of 1998)
—
RA 9182 (The Special Purpose Vehicle (SPV) Act of 2002)

—

Amended IRR of the Securities Regulations Code (12-30-2003)

Additional Cases
—
Public Estates Authority vs. Yujuico, G. R. No. 140486, February 6, 2001
—
Lim vs. Lim-Yu, G. R. No. 138343, February 19, 2001
—
Shipside Incorporated vs. CA, G. R. No. 143377, February 20, 2001
—
Magellan Capital Management Corp. vs. Zosa, G. R. No. 129916, March 26, 2001
—
Safic Alcan & Cie vs. Imperial Vegetable Oil Co., G. R. No. 126751, March 28, 2001
—
Pilipinas Loan Company vs. SEC, G. R. No. 104720, April 4, 2001
—
Indiana Aerospace University vs. CHED, G. R. No. 139371, April 4, 2001
—
Intestate Estate of Alexander Ty vs. CA, G. R. Nos. 112872 & 114672, April 19, 2001
—
Malayang Samahan ng mga Manggagawa vs. Ramos, G. R. No. 113907, April 20, 2001
—
Antiporda vs. Sandiganbayan, G. R. No. 116941, May 31, 2001
—
Union Bank of the Phils. vs. SEC, G. R. No. 138949, June 6, 2001
—
Del Mar vs. PAGCOR, G. R. No. 138298 & 138982, June 19, 2001
—
Pascual vs. CA, G. R. No. 138542, August 25, 2000
—
Asset Privatization Trust vs. Sandiganbayan, G. R. No. 108552, October 2, 2000
—
Transfarm & Co., Inc. vs. Daewoo Corp., G. R. No. 140453, October 17, 2000
—
International Express Travel & Tour Services vs. CA, G. R. No. 119002, October 19, 2000
—
JG Summit Holdings vs. CA, G. R. No. 124293, November 20, 2000
—
Sy Chin vs. CA, G. R. No. 136233, November 23, 2000