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\loch \f5 \lang9 \langnp9 .-- A corporation is an artificial being cre}{\rtlch
\fcs1 \af5 \ltrch \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5
\loch \f5 \lang1033 \langnp1033 a}{\rtlch \fcs1 \af5 \ltrch \fs20 \afs24
\kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang9 \langnp9 ted by
operation of law,having the right of succession and the powers, attributes and
properties expressly authorized by law or incident to its existence.}{\rtlch
\fcs1 \af5 \ltrch \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5
\loch \f5 \lang9 \langnp9 \par }\pard \plain \qj \li0 \ri0 \lisb0 \sa200 \lisa0
\widctlpar \aspalpha \aspnum \adjustright \lin0 \rin0 \itap0 \fs21 \kerning2 \rtlch
\ltrch \dbch \af2 \hich \af0 \loch \af0 {\rtlch \fcs1 \af5 \ltrch \b1 \fs20
\afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang9 \langnp9
Characteristics of a Corporation}{\rtlch \fcs1 \af5 \ltrch \b1 \fs20 \afs24
\kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang9 \langnp9 \par }\pard
\plain \qj \li0 \ri0 \lisb0 \sa200 \lisa0 \widctlpar \aspalpha \aspnum \adjustright
\lin0 \rin0 \itap0 \fs21 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af0 \loch \af0
{\rtlch \fcs1 \af5 \ltrch \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich
\af5 \loch \f5 \lang9 \langnp9 1. Artificial Being}{\rtlch \fcs1 \af5 \ltrch
\fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang9
\langnp9 \par }\pard \plain \qj \li0 \ri0 \lisb0 \sa200 \lisa0 \widctlpar \aspalpha
\aspnum \adjustright \lin0 \rin0 \itap0 \fs21 \kerning2 \rtlch \ltrch \dbch \af2
\hich \af0 \loch \af0 {\rtlch \fcs1 \af5 \ltrch \fs20 \afs24 \kerning2 \rtlch
\ltrch \dbch \af2 \hich \af5 \loch \f5 \lang9 \langnp9 2. Created by operation of
law}{\rtlch \fcs1 \af5 \ltrch \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich
\af5 \loch \f5 \lang9 \langnp9 \par }\pard \plain \qj \li0 \ri0 \lisb0 \sa200
\lisa0 \widctlpar \aspalpha \aspnum \adjustright \lin0 \rin0 \itap0 \fs21 \kerning2
\rtlch \ltrch \dbch \af2 \hich \af0 \loch \af0 {\rtlch \fcs1 \af5 \ltrch \fs20
\afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang9 \langnp9 3.
Has the right of succession}{\rtlch \fcs1 \af5 \ltrch \fs20 \afs24 \kerning2 \rtlch
\ltrch \dbch \af2 \hich \af5 \loch \f5 \lang9 \langnp9 \par }\pard \plain \qj
\li0 \ri0 \lisb0 \sa200 \lisa0 \widctlpar \aspalpha \aspnum \adjustright \lin0
\rin0 \itap0 \fs21 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af0 \loch \af0 {\rtlch
\fcs1 \af5 \ltrch \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5
\loch \f5 \lang9 \langnp9 4. Has power, attributes, properties expressly authorized
by law or incident to its existence}{\rtlch \fcs1 \af5 \ltrch \fs20 \afs24
\kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang9 \langnp9 \par }\pard
\plain \qj \li0 \ri0 \lisb0 \sa200 \lisa0 \widctlpar \aspalpha \aspnum \adjustright
\lin0 \rin0 \itap0 \fs21 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af0 \loch \af0
{\rtlch \fcs1 \af5 \ltrch \b1 \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich
\af5 \loch \f5 \lang9 \langnp9 A corporation as an artificial being}{\rtlch
\fcs1 \af5 \ltrch \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5
\loch \f5 \lang9 \langnp9 \par }\pard \plain \qj \fi720 \cufi0 \li0 \ri0 \lisb0
\sa200 \lisa0 \widctlpar \aspalpha \aspnum \adjustright \lin0 \rin0 \itap0 \fs21
\kerning2 \rtlch \ltrch \dbch \af2 \hich \af0 \loch \af0 {\rtlch \fcs1 \af5
\ltrch \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5
\lang9 \langnp9 A co}{\rtlch \fcs1 \af5 \ltrch \fs20 \afs24 \kerning2 \rtlch \ltrch
\dbch \af2 \hich \af5 \loch \f5 \lang1033 \langnp1033 r}{\rtlch \fcs1 \af5
\ltrch \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5
\lang9 \langnp9 poration has personality separate and distinct from its owners.}
{\rtlch \fcs1 \af5 \ltrch \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich
\af5 \loch \f5 \lang9 \langnp9 \par }\pard \plain \qj \li0 \ri0 \lisb0 \sa200
\lisa0 \widctlpar \aspalpha \aspnum \adjustright \lin0 \rin0 \itap0 \fs21 \kerning2
\rtlch \ltrch \dbch \af2 \hich \af0 \loch \af0 {\rtlch \fcs1 \af5 \ltrch \b1
\fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang9
\langnp9 A corporation is created by operation of law}{\rtlch \fcs1 \af5 \ltrch \b1
\fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang9
\langnp9 \par }\pard \plain \qj \fi720 \cufi0 \li0 \ri0 \lisb0 \sa200 \lisa0
\widctlpar \aspalpha \aspnum \adjustright \lin0 \rin0 \itap0 \fs21 \kerning2 \rtlch
\ltrch \dbch \af2 \hich \af0 \loch \af0 {\rtlch \fcs1 \af5 \ltrch \fs20 \afs24
\kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang9 \langnp9 Corporation
require special authority or grant from the (SEC) to operate.}{\rtlch \fcs1 \af5
\ltrch \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5
\lang9 \langnp9 \par }\pard \plain \qj \li0 \ri0 \lisb0 \sa200 \lisa0 \widctlpar
\aspalpha \aspnum \adjustright \lin0 \rin0 \itap0 \fs21 \kerning2 \rtlch \ltrch
\dbch \af2 \hich \af0 \loch \af0 {\rtlch \fcs1 \af5 \ltrch \b1 \fs20 \afs24
\kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033 \langnp1033 A
corporation has the right of succession}{\rtlch \fcs1 \af5 \ltrch \b1 \fs20
\afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033
\langnp1033 \par }\pard \plain \qj \fi720 \cufi0 \li0 \ri0 \lisb0 \sa200 \lisa0
\widctlpar \aspalpha \aspnum \adjustright \lin0 \rin0 \itap0 \fs21 \kerning2 \rtlch
\ltrch \dbch \af2 \hich \af0 \loch \af0 {\rtlch \fcs1 \af5 \ltrch \fs20 \afs24
\kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033 \langnp1033
Corporation continues to exist for a period for which it has been formes regardless
of the changes in the ownership.}{\rtlch \fcs1 \af5 \ltrch \fs20 \afs24
\kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033 \langnp1033
\par }\pard \plain \qj \li0 \ri0 \lisb0 \sa200 \lisa0 \widctlpar \aspalpha
\aspnum \adjustright \lin0 \rin0 \itap0 \fs21 \kerning2 \rtlch \ltrch \dbch \af2
\hich \af0 \loch \af0 {\rtlch \fcs1 \af5 \ltrch \b1 \fs20 \afs24 \kerning2
\rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033 \langnp1033 A corporation
has limited capacity}{\rtlch \fcs1 \af5 \ltrch \b1 \fs20 \afs24 \kerning2 \rtlch
\ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033 \langnp1033 \par }\pard \plain \qj
\fi720 \cufi0 \li0 \culi0 \ri0 \lisb0 \sa200 \lisa0 \pnrnot0 \widctlpar
\aspalpha \aspnum \adjustright \lin0 \rin0 \itap0 \ls0 \fs21 \kerning2 \rtlch
\ltrch \dbch \af2 \hich \af0 \loch \af0 {\rtlch \fcs1 \af5 \ltrch \b0 \fs20
\afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033
\langnp1033 A corporation, being mere creation of law, may exercise only such
powers as are granted by the law of its creation.}{\rtlch \fcs1 \af5 \ltrch \b0
\fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033
\langnp1033 \par }\pard \plain \qj \li0 \ri0 \lisb0 \sa200 \lisa0 \widctlpar
\aspalpha \aspnum \adjustright \lin0 \rin0 \itap0 \fs21 \kerning2 \rtlch \ltrch
\dbch \af2 \hich \af0 \loch \af0 {\rtlch \fcs1 \af5 \ltrch \b1 \fs20 \afs24
\kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033 \langnp1033
Section 3. Major Classes of Corporation}{\rtlch \fcs1 \af5 \ltrch \b1 \fs20
\afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033
\langnp1033 \par }\pard \plain \qj \li0 \ri0 \lisb0 \sa200 \lisa0 \pnrnot0
\widctlpar \aspalpha \aspnum \adjustright \lin0 \rin0 \itap0 \ls1 \fs21
\kerning2 \rtlch \ltrch \dbch \af2 \hich \af0 \loch \af0 {\listtext \pard \plain
\fs21 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af0 \loch \af0 \f1 1. }{\rtlch
\fcs1 \af5 \ltrch \b1 \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5
\loch \f5 \lang1033 \langnp1033 Stock Corporations-}{\rtlch \fcs1 \af5 \ltrch
\b0 \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5
\lang1033 \langnp1033 operated for the purpose of making a profit which may be
distributed in the form of dividends to stockholders on the basis of their invested
capital.}{\rtlch \fcs1 \af5 \ltrch \b0 \fs20 \afs24 \kerning2 \rtlch \ltrch
\dbch \af2 \hich \af5 \loch \f5 \lang1033 \langnp1033 \par }\pard \plain \qj
\li0 \ri0 \lisb0 \sa200 \lisa0 \pnrnot0 \widctlpar \aspalpha \aspnum
\adjustright \lin0 \rin0 \itap0 \ls1 \fs21 \kerning2 \rtlch \ltrch \dbch \af2 \hich
\af0 \loch \af0 {\listtext \pard \plain \fs21 \kerning2 \rtlch \ltrch \dbch \af2
\hich \af0 \loch \af0 \f1 2. }{\rtlch \fcs1 \af5 \ltrch \b1 \fs20 \afs24
\kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033 \langnp1033 Non-
stock Corporations}{\rtlch \fcs1 \af5 \ltrch \b0 \fs20 \afs24 \kerning2 \rtlch
\ltrch
\dbch \af2 \hich \af5 \loch \f5 \lang1033 \langnp1033 - do not issues stock and
are created not for profit but for the public good and welfare. }{\rtlch \fcs1 \af5
\ltrch \b0 \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5
\lang1033 \langnp1033 \par }\pard \plain \qj \li0 \ri0 \lisb0 \sa200 \lisa0
\pnrnot0 \widctlpar \aspalpha \aspnum \adjustright \lin0 \rin0 \itap0 \ls0 \fs21
\kerning2 \rtlch \ltrch \dbch \af2 \hich \af0 \loch \af0 {\rtlch \fcs1 \af5
\ltrch \b1 \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5
\lang1033 \langnp1033 According to Purpose}{\rtlch \fcs1 \af5 \ltrch \b1 \fs20
\afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033
\langnp1033 \par }\pard \plain \qj \fi-420 \cufi0 \li420 \culi0 \ri0 \lisb0
\sa200 \lisa0 \pnrnot0 \widctlpar \aspalpha \aspnum \adjustright \lin420 \rin0
\itap0 \ls2 \fs21 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af0 \loch \af0
{\listtext \pard \plain \fs21 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af0
\loch \af0 \f4 \'d8\'00\tab }{\rtlch \fcs1 \af5 \ltrch \b1 \fs20 \afs24
\kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033 \langnp1033
Public Corporations- }{\rtlch \fcs1 \af5 \ltrch \b0 \fs20 \afs24 \kerning2
\rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033 \langnp1033 Those formed or
organized for the government of a portion of the state which have for their purpose
the general good and welfare.}{\rtlch \fcs1 \af5 \ltrch \b1 \fs20 \afs24
\kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033 \langnp1033
\par }\pard \plain \qj \fi-420 \cufi0 \li420 \culi0 \ri0 \lisb0 \sa200 \lisa0
\pnrnot0 \widctlpar \aspalpha \aspnum \adjustright \lin420 \rin0 \itap0 \ls2
\fs21 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af0 \loch \af0 {\listtext \pard
\plain \fs21 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af0 \loch \af0
\f4 \'d8\'00\tab }{\rtlch \fcs1 \af5 \ltrch \b1 \fs20 \afs24 \kerning2 \rtlch
\ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033 \langnp1033 Private Corporations-}
{\rtlch \fcs1 \af5 \ltrch \b0 \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich
\af5 \loch \f5 \lang1033 \langnp1033 Those formed for some private purpose,
benefit, and aim.}{\rtlch \fcs1 \af5 \ltrch \b1 \fs20 \afs24 \kerning2 \rtlch
\ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033 \langnp1033 \par }\pard \plain \qj
\fi-420 \cufi0 \li420 \culi0 \ri0 \lisb0 \sa200 \lisa0 \pnrnot0 \widctlpar
\aspalpha \aspnum \adjustright \lin420 \rin0 \itap0 \ls2 \fs21 \kerning2 \rtlch
\ltrch \dbch \af2 \hich \af0 \loch \af0 {\listtext \pard \plain \fs21 \kerning2
\rtlch \ltrch \dbch \af2 \hich \af0 \loch \af0 \f4 \'d8\'00\tab }{\rtlch \fcs1 \af5
\ltrch \b1 \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5
\lang1033 \langnp1033 Quasi-Public Corporations- }{\rtlch \fcs1 \af5 \ltrch \b0
\fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033
\langnp1033 Private corporations supported by the government in the performance of
public duties.}{\rtlch \fcs1 \af5 \ltrch \b1 \fs20 \afs24 \kerning2 \rtlch
\ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033 \langnp1033 \par }\pard \plain \qj
\fi-420 \cufi0 \li420 \culi0 \ri0 \lisb0 \sa200 \lisa0 \pnrnot0 \widctlpar
\aspalpha \aspnum \adjustright \lin420 \rin0 \itap0 \ls2 \fs21 \kerning2 \rtlch
\ltrch \dbch \af2 \hich \af0 \loch \af0 {\listtext \pard \plain \fs21 \kerning2
\rtlch \ltrch \dbch \af2 \hich \af0 \loch \af0 \f4 \'d8\'00\tab }{\rtlch \fcs1 \af5
\ltrch \b1 \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5
\lang1033 \langnp1033 Government- Owned and Controlled Corporation (GOCC)-}
{\rtlch \fcs1 \af5 \ltrch \b0 \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich
\af5 \loch \f5 \lang1033 \langnp1033 Owned by the Government of the Republic of
the Philippines directly or through its instrumentalities either wholly or, where
applicable as in the case of stock corporations, to the extent of at least a
majority of its outstanding capital stock.}{\rtlch \fcs1 \af5 \ltrch \b1 \fs20
\afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033
\langnp1033 \par }\pard \plain \qj \li0 \culi0 \ri0 \lisb0 \sa200 \lisa0
\pnrnot0 \widctlpar \aspalpha \aspnum \adjustright \lin0 \rin0 \itap0 \ls0 \fs21
\kerning2 \rtlch \ltrch \dbch \af2 \hich \af0 \loch \af0 {\rtlch \fcs1 \af5
\ltrch \b1 \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5
\lang1033 \langnp1033 Corporation by Prescription}{\rtlch \fcs1 \af5 \ltrch \b1
\fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033
\langnp1033 \par }\pard \plain \qj \fi720 \cufi0 \li0 \culi0 \ri0 \lisb0 \sa200
\lisa0 \pnrnot0 \widctlpar \aspalpha \aspnum \adjustright \lin0 \rin0 \itap0
\ls0 \fs21 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af0 \loch \af0 {\rtlch
\fcs1 \af5 \ltrch \b0 \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5
\loch \f5 \lang1033 \langnp1033 A corporation that has existed longer than the
memory of man can remember and is presumed to have acquired its juridical
personality from the long time ago.}{\rtlch \fcs1 \af5 \ltrch \b0 \fs20 \afs24
\kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033 \langnp1033
\par }\pard \plain \qj \li0 \ri0 \lisb0 \sa200 \lisa0 \pnrnot0 \widctlpar \aspalpha
\aspnum \adjustright \lin0 \rin0 \itap0 \ls0 \fs21 \kerning2 \rtlch \ltrch \dbch
\af2 \hich \af0 \loch \af0 {\rtlch \fcs1 \af5 \ltrch \b1 \fs20 \afs24 \kerning2
\rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033 \langnp1033 Corporations
Nationality}{\rtlch \fcs1 \af5 \ltrch \b1 \fs20 \afs24 \kerning2 \rtlch \ltrch
\dbch \af2 \hich \af5 \loch \f5 \lang1033 \langnp1033 \par }\pard \plain \qj \fi720
\cufi0 \li0 \ri0 \lisb0 \sa200 \lisa0 \pnrnot0 \widctlpar \aspalpha \aspnum
\adjustright \lin0 \rin0 \itap0 \ls0 \fs21 \kerning2 \rtlch \ltrch \dbch \af2 \hich
\af0 \loch \af0 {\rtlch \fcs1 \af5 \ltrch \b0 \fs20 \afs24 \kerning2 \rtlch
\ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033 \langnp1033 A foreign corporation
is one formed, organized or existing under laws other than those of the Philippines
and whose laws allow Filipino citizens and corporation to do business in its own
country or State. }{\rtlch \fcs1 \af5 \ltrch \b0 \fs20 \afs24 \kerning2 \rtlch
\ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033 \langnp1033 \par }\pard \plain \qj
\fi-420 \cufi0 \li420 \culi0 \ri0 \lisb0 \sa200 \lisa0 \pnrnot0 \widctlpar
\aspalpha \aspnum \adjustright \lin420 \rin0 \itap0 \ls2 \fs21 \kerning2 \rtlch
\ltrch \dbch \af2 \hich \af0 \loch \af0 {\listtext \pard \plain \fs21 \kerning2
\rtlch \ltrch \dbch \af2 \hich \af0 \loch \af0 \f4 \'d8\'00\tab }{\rtlch \fcs1 \af5
\ltrch \b1 \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5
\lang1033 \langnp1033 Incorporation Test}{\rtlch \fcs1 \af5 \ltrch \b0 \fs20 \afs24
\kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033 \langnp1033 -
primarily use to determine the nationality of a corporation. Corporation is
considered a national of the country under whose laws it was incorporated.}
{\rtlch \fcs1 \af5 \ltrch \b0 \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich
\af5 \loch \f5 \lang1033 \langnp1033 \par }\pard \plain \qj \fi-420 \cufi0
\li420 \culi0 \ri0 \lisb0 \sa200 \lisa0 \pnrnot0 \widctlpar \aspalpha \aspnum
\adjustright \lin420 \rin0 \itap0 \ls2 \fs21 \kerning2 \rtlch \ltrch \dbch \af2
\hich \af0 \loch \af0 {\listtext \pard \plain \fs21 \kerning2 \rtlch \ltrch
\dbch \af2 \hich \af0 \loch \af0 \f4 \'d8\'00\tab }{\rtlch \fcs1 \af5 \ltrch \b1
\fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033
\langnp1033 Control Test (Liberal rule)-}{\rtlch \fcs1 \af5 \ltrch \b0 \fs20 \afs24
\kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033 \langnp1033 If a
corporation is at least 60% Filipino-owned, then all shares (100%) are considered
as Filipino shares.}{\rtlch \fcs1 \af5 \ltrch \b0 \fs20 \afs24 \kerning2 \rtlch
\ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033 \langnp1033 \par }\pard \plain \qj
\fi-420 \cufi0 \li420 \culi0 \ri0 \lisb0 \sa200 \lisa0 \pnrnot0 \widctlpar
\aspalpha \aspnum \adjustright \lin420 \rin0 \itap0 \ls2 \fs21 \kerning2 \rtlch
\ltrch \dbch \af2 \hich \af0 \loch \af0 {\listtext \pard \plain \fs21 \kerning2
\rtlch \ltrch \dbch \af2 \hich \af0 \loch \af0 \f4 \'d8\'00\tab }{\rtlch \fcs1 \af5
\ltrch \b1 \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5
\lang1033 \langnp1033 Wholly/Partly Nationalized Industries}{\rtlch \fcs1 \af5
\ltrch \b1 \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5
\lang1033 \langnp1033 \par }\pard \plain \qj \fi400 \li0 \culi0 \ri0 \lisb0
\sa200 \lisa0 \pnrnot0 \widctlpar \aspalpha \aspnum \adjustright \lin0 \rin0 \itap0
\ls0 \fs21 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af0 \loch \af0 {\rtlch
\fcs1 \af5 \ltrch \b0 \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5
\loch \f5 \lang1033 \langnp1033 No foreign equity- Mass media by mandate of the
1987 Constitution}{\rtlch \fcs1 \af5 \ltrch \b0 \fs20 \afs24 \kerning2 \rtlch
\ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033 \langnp1033 \par }\pard \plain \qj
\fi400 \li0 \culi0 \ri0 \lisb0 \sa200 \lisa0 \pnrnot0 \widctlpar \aspalpha
\aspnum \adjustright \lin0 \rin0 \itap0 \ls0 \fs21 \kerning2 \rtlch \ltrch \dbch
\af2 \hich \af0 \loch \af0 {\rtlch \fcs1 \af5 \ltrch \b0 \fs20 \afs24 \kerning2
\rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033 \langnp1033 Up to 25%
foreign equity- private recruitment, whether for local or overseas employment by
mandates of PD No.442}{\rtlch \fcs1 \af5 \ltrch \b0 \fs20 \afs24 \kerning2
\rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033 \langnp1033 \par }\pard
\plain \qj \fi400 \li0 \culi0 \ri0 \lisb0 \sa200 \lisa0 \pnrnot0 \widctlpar
\aspalpha \aspnum \adjustright \lin0 \rin0 \itap0 \ls0 \fs21 \kerning2 \rtlch
\ltrch \dbch \af2 \hich \af0 \loch \af0 {\rtlch \fcs1 \af5 \ltrch \b0 \fs20
\afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033
\langnp1033 Up to 40% foreign equity- ownership of private lands by mandate of the
Constitution}{\rtlch \fcs1 \af5 \ltrch \b0 \fs20 \afs24 \kerning2 \rtlch \ltrch
\dbch \af2 \hich \af5 \loch \f5 \lang13321 \langnp13321 }{\rtlch \fcs1 \af5 \ltrch
\b0 \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang13321
\langnp13321 \par }\pard \plain \qj \fi-420 \cufi0 \li420 \culi0 \ri0 \lisb0 \sa200
\lisa0 \pnrnot0 \widctlpar \aspalpha \aspnum \adjustright \lin420 \rin0
\jclisttab \tx420 \itap0 \ls2 \fs21 \kerning2 \rtlch \ltrch \dbch \af2 \hich
\af0 \loch \af0 {\listtext \pard \plain \fs21 \kerning2 \rtlch \ltrch \dbch \af2
\hich \af0 \loch \af0 \f4 \'d8\'00\tab }{\rtlch \fcs1 \af5 \ltrch \b1 \fs20
\afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang1033
\langnp1033 Grandfather rule (Strict rule)- }{\rtlch \fcs1 \af5 \ltrch \b0 \fs20
\afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang13321
\langnp13321 applied to corporations where the 60-40 Filipino-foreign ownership is
in doubt.}{\rtlch \fcs1 \af5 \ltrch \b1 \fs20 \afs24 \kerning2 \rtlch \ltrch
\dbch \af2 \hich \af5 \loch \f5 \lang1033 \langnp1033 \par }\pard \plain \qj
\li0 \culi0 \ri0 \lisb0 \sa200 \lisa0 \pnrnot0 \widctlpar \aspalpha \aspnum
\adjustright \lin0 \rin0 \itap0 \ls0 \fs21 \kerning2 \rtlch \ltrch \dbch \af2 \hich
\af0 \loch \af0 {\rtlch \fcs1 \af5 \ltrch \b1 \fs20 \afs24 \kerning2 \rtlch
\ltrch \dbch \af2 \hich \af5 \loch \f5 \lang13321 \langnp13321 Corporate Juridical
Personality}{\rtlch \fcs1 \af5 \ltrch \b1 \fs20 \afs24 \kerning2 \rtlch \ltrch
\dbch \af2 \hich \af5 \loch \f5 \lang13321 \langnp13321 \par }\pard \plain \qj
\fi720 \cufi0 \li0 \culi0 \ri0 \lisb0 \sa200 \lisa0 \pnrnot0 \widctlpar
\aspalpha \aspnum \adjustright \lin0 \rin0 \itap0 \ls0 \fs21 \kerning2 \rtlch
\ltrch \dbch \af2 \hich \af0 \loch \af0 {\rtlch \fcs1 \af5 \ltrch \b0 \fs20
\afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang13321
\langnp13321 In general rule corporation cannot become a partner in a
partnership. }{\rtlch \fcs1 \af5 \ltrch \b0 \fs20 \afs24 \kerning2 \rtlch \ltrch
\dbch \af2 \hich \af5 \loch \f5 \lang13321 \langnp13321 \par }\pard \plain \qj
\fi720 \cufi0 \li0 \culi0 \ri0 \lisb0 \sa200 \lisa0 \pnrnot0 \widctlpar
\aspalpha \aspnum \adjustright \lin0 \rin0 \itap0 \ls0 \fs21 \kerning2 \rtlch
\ltrch \dbch \af2 \hich \af0 \loch \af0 {\rtlch \fcs1 \af5 \ltrch \b0 \fs20
\afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang13321
\langnp13321 A corporation is liable for torts whenever a tortuous act is committed
under the express direction or authority of the stockholders or members acting as
body, or generally, from the directors as the governing body. }{\rtlch \fcs1
\af5 \ltrch \b0 \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch
\f5 \lang13321 \langnp13321 \par }\pard \plain \qj \fi720 \cufi0 \li0 \culi0
\ri0 \lisb0 \sa200 \lisa0 \pnrnot0 \widctlpar \aspalpha \aspnum \adjustright
\lin0 \rin0 \itap0 \ls0 \fs21 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af0
\loch \af0 {\rtlch \fcs1 \af5 \ltrch \b0 \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch
\af2 \hich \af5 \loch \f5 \lang13321 \langnp13321 A corporation is not liable for
crimes since a corporation is a mere legal fiction and does not have the essential
element of malice, in such case the responsible would be criminally liable.
However, the exception is if the penalty of the crime is only fine or forfeiture of
license or franchise.}{\rtlch \fcs1 \af5 \ltrch \b0 \fs20 \afs24 \kerning2
\rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang13321 \langnp13321
\par }\pard \plain \qj \fi720 \cufi0 \li0 \culi0 \ri0 \lisb0 \sa200 \lisa0 \pnrnot0
\widctlpar \aspalpha \aspnum \adjustright \lin0 \rin0 \itap0 \ls0 \fs21
\kerning2 \rtlch \ltrch \dbch \af2 \hich \af0 \loch \af0 {\rtlch \fcs1 \af5
\ltrch \b0 \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5
\lang13321 \langnp13321 A corporation can recover damages, except for moral
damages,but under Article 2219 of the New Civil Code expressly authorizes the
recovery of moral damages in cases of libel,slander, or any other form of
defamation.}{\rtlch \fcs1 \af5 \ltrch \b0 \fs20 \afs24 \kerning2 \rtlch \ltrch
\dbch \af2 \hich \af5 \loch \f5 \lang13321 \langnp13321 \par }\pard \plain \qj \li0
\ri0 \lisb0 \sa200 \lisa0 \pnrnot0 \widctlpar \aspalpha \aspnum \adjustright
\lin0 \rin0 \itap0 \ls0 \fs21 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af0
\loch \af0 {\rtlch \fcs1 \af5 \ltrch \b1 \fs20 \afs24 \kerning2 \rtlch \ltrch \dbch
\af2 \hich \af5 \loch \f5 \lang13321 \langnp13321 Doctrine of Piercing the
Corporate Veil}{\rtlch \fcs1 \af5 \ltrch \b1 \fs20 \afs24 \kerning2 \rtlch
\ltrch \dbch \af2 \hich \af5 \loch \f5 \lang13321 \langnp13321 \par }\pard
\plain \qj \fi720 \cufi0 \li0 \ri0 \lisb0 \sa200 \lisa0 \pnrnot0 \widctlpar
\aspalpha \aspnum \adjustright \lin0 \rin0 \itap0 \ls0 \fs21 \kerning2 \rtlch
\ltrch \dbch \af2 \hich \af0 \loch \af0 {\rtlch \fcs1 \af5 \ltrch \b0 \fs20
\afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang13321
\langnp13321 A doctrine that disregard the separate personally of a corporation if
this separate personally is used as an alter ego of another entity and was used to
justify wrong, protect fraud, perpetrate deception, or defeat public convenience
and it may also be used to achieve equity.}{\rtlch \fcs1 \af5 \ltrch \b0 \fs20
\afs24 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af5 \loch \f5 \lang13321
\langnp13321 \par }\pard \plain \qj \li0 \ri0 \lisb0 \sa200 \lisa0 \widctlpar
\aspalpha \aspnum \adjustright \lin0 \rin0 \itap0 \fs21 \kerning2 \rtlch \ltrch
\dbch \af2 \hich \af0 \loch \af0 {\fs22 \afs24 \kerning2 \rtlch \ltrch \dbch
\af2 \hich \af0 \loch \f0 \lang13321 \langnp13321 \par }\pard \plain \qj \li0
\ri0 \lisb0 \sa200 \lisa0 \widctlpar \aspalpha \aspnum \adjustright \lin0 \rin0
\itap0 \fs21 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af0 \loch \af0 {\fs22 \afs24
\kerning2 \rtlch \ltrch \dbch \af6 \hich \af6 \loch \f6 \lang9 \langnp9 \par }}