UNIVERSITY OF NUEVA CACERES

COLLEGE OF LAW

CORPORATION AND SECURITIES LAW SYLLABUS

By ATTY. MARIA JELA M. MORAN,LPT

I. COURSE DESCRIPTION AND OBJECTIVES

This course is a study of the Revised Corporation Code of the Philippines (R.A. 11232-effective
February 23, 2019), the Securities Regulation Code (R.A. 8799) and its IRR, relevant legislations, such
as the Financial Rehabilitation and Insolvency Act (FRIA) of 2010 (R.A. 10142), and the latest
jurisprudence interpreting the said laws.

This course aims to adequately prepare and boost the confidence of the students to successfully
hurdle the bar exam.

II. COURSE OUTLINE and MATERIALS

Principal References:

1. Corporation and Basic Securities Law (2022) by Judge Rocille

Aquino-Tambasacan
2. The Revised Corporation Code of the Philippines Annotated (2019),
Volumes I-III, by Rufino San Buenventura Javier

REVISED CORPORATION CODE OF THE PHILIPPINES (R.A.11232)

I. History of Corporations and the Corporation Laws of the
Philippines
A. Act No. 1459- The Corporation Law
B. Batas Pambansa Blg. 68-Corporation Code of the
Philippines
C. Republic Act No. 11232- The Revised Corporation Code
of the Philippines
II. General provisions (Sections 1 to 9)
A. Corporation, defined
B. Corporation as an artificial being
Cases:
​ Philippine National Bank vs. Hydro Resources Contractors Corp.,
693 SCRA 294
​ Magsaysay-Labrador vs. Court of Appeals, 180 SCRA 266
​ Palm Avenue Holding Co., Inc. vs. Sandiganbayan, 732 SCRA
156
​ Bataan Shipyard & Engineering Co., Inc. vs. Presidential

1
 Commision on Good Government, 150 SCRA 181
​ Noell Whessoe, Inc., vs. Independent Testing Consultants, Inc.,
G.R No.199851, November 7, 2018
C. Corporation being created by operation of law
Cases:
​ Funa vs. Manila Economic Cultural Office et al., G.R No.193462,
February 4, 2014
​ League of Cities of the Philippines vs. Commission on Elections,
571 SCRA 263
D. A creature possessing powers
E. Piercing the Veil of Corporate Fiction
Cases:
​ Rivera vs. United Laboratories Inc., 586 SCRA 269
​ Maricalum Mining Corp. vs. Florentino, G.R No.221813, July 23,
2018
​ Heirs of Fe Tan Uy vs. International Exchange Bank,690 SCRA
519
​ Concept Builders, Inc. vs. National Labor Relations Commission,
et al., 257 SCRA 149
​ Philippine National Bank vs. Ritratto Group, Inc., et al., 362
SCRA 216
​ WPM International Trading, Inc., et al. v. Labayen, 735 SCRA
297
F. Reverse Piercing or Reverse Corporate Piercing or
Piercing in the Corporate Veil “in reverse”
Cases:
​ International Academy of Management and Economics
Incorporated (I/AME) vs. Liton and Co., Inc., G.R. No. 191525
December 13, 2017
G. Corporation vs. Partnership vs. Sole Proprietorship
Cases:
​ Mabuhay Holdings Corp. vs. Sembcorp Logistic Limited, G.R.
No.212734, December 5, 2018
H. Classes of Corporations
Cases:
​ Funa vs. Manila Economic and Cultural Office, et al., G.R.
No.193462, February 4, 2014
​ Phil. Society for the Prevention of Cruelty to Animals vs.
Commission on Audit, 195 SCRA 444
​ Seventh Day Adventist Conference Church of Southern Phils.,
Inc. vs. Northeastern Mindanao Mission of Seventh Day
Adventist, Inc., G.R. No. 150416, July 21, 2006
​ Missionary Sisters of Our Lady of Fatima vs. Alzona, G.R. No.
224307, August 6, 2018
​ Lozano vs. De Los Santos, 274 SCRA 452

I. Nationality of Corporations
Cases:

2
 ​ Narra Nickel Mining and Development Corporation vs. Redmont
Consolidated Mine, Corp., G.R.195580, April 21, 2014

J. Classification of Shares
Cases:
Commissioner of Internal Revenue vs. Court of Appeals, 301 SCRA 152
Delpher Trades Corporation vs. Intermediate Appellate Court, 157 SCRA
349
Philippine Coconut Producers Federation, Inc. vs. Republic, G.R.
No.177857-58, September 17, 2009
Salido vs. Aramaywan Metals Development Corporation, G.R. No. 233857,
March 18, 2021

III. Incorporation and Organization of Privates Corporations

(Sections 10 to 21)
A. Number and qualifications of incorporators
B. Corporate term
C. Minimum capital stock of Stock Corporations
D. Contents of the Articles of Incorporations
E. Form of Articles of Incorporations
F. Amendment of Articles of Incorporations
G. Grounds when articles of incorporations or amendment
may be disapproved
H. Corporate name
Cases:
Philips Export B.V vs. Court of Appeals, 206 SCRA 457
Lyceum of the Philippines vs. Court of Appeals, 219 SCRA 610
Philips Export B.V vs. Court of Appeals, 206 SCRA 457
Asia Pacific Resources International Holdings, Ltd. vs. Paperone, Inc.,
G.R. No.213365-66, December 10, 2018
De La Salle Montessori International Malolos, Inc., vs. De La Salle
Brothers, Inc., G.R. No.205548, February 7, 2018
Indian Chamber of Commerce Phils., Inc. vs. Filipino-Indian Chamber of
Commerce of The Philippines, Inc., G.R. No.1844008, August 3, 2016
GSIS Family Bank-Thrift Bank [Formerly Comsavings Bank, Inc.] vs.
BPI Family Bank, 771 SCRA 284
Ang mga Kaanib sa Iglesia ng Dios kay Kristo Hesus, H.S.K. sa Bansang
Pilipinas, Inc, vs. Iglesia ng Diyos kay Kristo Hesus, Haligi at Suhay ng
Katotohanan, 372 SCRA 171
Zuellig Freight and Cargo Systems vs. NLRC, 701 SCRA 561

I. Registration, Incorporation and commencement of

corporate existence
J. Effect of non-use of corporate charter and continuous
inoperation

3
IV. Board of directors/ trustees and officers (Sections 22 to 34)
A. Qualification and term of the board of directors or
trustees
Cases:
​ Señeres vs. Commission on Elections, 585 SCRA 557
​ Lee vs. Court of Appeals, G.R. No.93695, February 2, 1992
B. Independent directors
C. Election of directors or trustees
Case:
​ Tan vs. Sycip, 499 SCRA 216
D. Cumulative Voting for stockholders
E. Corporate officers
Cases:
​ Lopez Realty vs. Tanjangco, G.R. No.154291, November 12, 2014
​ Tabang vs. National Labor Relations Commission, 266 SCRA 462
​ Matling Industrial and Commercial Corporation, et al. v. Ricardo
Coros,633 SCRA 12
F. Compliance officer
G. The doctrine of apparent authority
Cases:
​ People’s Aircargo and Warehousing Co., Inc. vs. Court of Appeals,
297 SCRA 170
​ Inter-Asia Investment Industries vs. Court of Appeals, 403 SCRA
452
​ Kwok vs. Philippine Carpet Manufacturing Corp., 457 SCRA 465
​ Sargasso Construction & Development Corporation/Pick & 16
Shovel Inc., Atlantic Erectors, Inc. (Joint Venture) vs. Philippine
Ports Authority, 623 SCRA 260
​ Philippine Race Horse Trainer’s Association vs. Piedras Negras
Construction and Development Corporation, G.R. No. 192659,
December 2, 2015
​ People’s Aircargo and Warehousing Co., Inc. vs. Court of Appeals,
G.R. No. 181068, May 10, 2010
​ Francisco vs. Government Service Insurance System, 117 Phil.
586
​ Calubad vs. Ricarcen Development Corp., G.R. No. 202364,
August 30, 2017
​ Georg vs. Holy Trinity College, Inc., G.R. No.190408, July 20,
2016
​ Advance Paper Corporation vs. Arma Traders Corporation, 712
SCRA 313
H. Disqualification of directors trustees or officers
Cases:
​ Gokongwei vs. SEC, 97 SCRA 78
I. Removal of directors or trustees

4
 Cases:
​ Bernas vs. Cinco G.R. Nos. 163356-57, 163368-69, July 1, 2015
J. Vacancies in the Office of Director or Trustee
Cases:
​ Tan vs Sycip 499 SCRA 216
​ Valle Verde Country Club, Inc. vs. Africa, 598 SCRA 202

K. Emergency Board
L. The Executive Committee
M. Compensation of Directors or Trustees
Case:
​ Western Institute of Technology, Inc. vs. Salas, 278 SCRA 216
N. Liability of Directors, Trustees or Officers
Cases:
​ Schildberg Rock Products Co. vs. Brooks, 140 NW 2 d132
​ Ong Yong vs. Tiu, 375 SCRA 614
​ The Coffee Bean and Tea Leaf Philippines, Inc. vs. Arenas, 753
SCRA 187
​ Carag vs. National Labor Relations Commission, 520 SCRA 28
O. Dealings of Directors Trustees, Or Officers with the
Corporation
Cases:
​ Agdao Landless Residents Association, Inc. (ALRAI) vs.
Maramion, G.R. Nos.188642,189425, 18888-89, October 17, 2016
​ Prime White Cement Corp. vs. Intermediate Appellate Court, 220
SCRA 103
​ Koruga vs. Arcenas, Jr., 590 SCRA 49

P. Contracts between Corporations with Interlocking

Directors

V. Power of Corporations (Sections 35 to 44)

A. General Powers
Cases:
​ Laureano Investment & Development Corporation vs. The
Honorable Court of Appeals and Bormaheco, Inc., G.R. No.
100468, May 6, 1997

B. Specific Powers
Cases:
​ MSCI Nacusip Local Chapter vs. National Wages and
Productivity Commission, G.R. No.125198, March 3, 1997
​ Y-I Leisure Philippines, Inc. vs. Yu, G.R. No.2017161, September
8, 2015

5
 ​ Edward J. Nell Company vs. Pacific Farms, Inc., 122 Phil. 825
Caltex (Phils.), Inc. v. PNOC Shipping & Transport Corp., G.R.
No.150711, August 10, 2006
​ Villa Rey Transit Inc. v. Ferrer, 134 Phil. 796
​ Turner vs. Lorenzo Shipping, Corp., 636 SCRA 13
​ Commissioner of Internal Revenue vs. Goodyear Philippines, Inc.,
G.R. No.216130, August 3, 2016
​ Nielson & Co., Inc. vs. Lepanto Consolidated Mining Co., 135
Phil. 532
​ Metroplex Berhad vs. Sinophil Corp., G.R. No.208281, June 28,
2021

C. Ultra Vires Acts

Cases:
​ Montelibano et al. vs. Bacolod-Murcia Milling Co,. Inc. 115 Phil.
18
​ Pirovano, et al vs. De La Rama Steamship Co., 96 Phil. 335
​ University of Mindanao vs. Bangko Sentral ng Pilipinas, 778
SCRA 458
​ Twin Towers Condominium Corporation vs. Court of Appeals, 398
SCRA 203
​ Magallanes Watercraft Association, Inc. vs.Auguis, G.R.
No.211485, May 30, 2016
​ Republic of the Philippines vs. Acoje Mining Company, Inc., 7
SCRA 361

VI. Bylaws (Sections 45 to 47)

Cases:
San Miguel Corporation (Mandaue Packaging Products Plants) vs.
Mandaue Packaging Products Plants- San Miguel Packaging Products-
San Miguel Corporation Monthlies Rank-and-FilesUnion-FFW, 467 SCRA
107
Loyola Grand Villas Homeowners (South) vs. Court of Appeals, 276 SCRA
681
Fleischer vs. Botica Nolasco Co., Inc., 47 Phil. 583

A. Adoption of Bylaws
B. Contents of Bylaws
C. Amendment of the Bylaws
D. Bylaws vs Articles of Incorporation
Cases:
Grace Christian High School vs. Court of Appeal, 281 SCRA 133
Vda. De Baretto vs. La Previsora Filipina, 59 Phil. 212
Fleischer vs. Botica Nolasco Co., Inc., 47 Phil. 583

VI. Meetings (Section 48 to 58)

Case:

6
 Lim vs. Moldex Land, G.R. No.206038, January 25, 201
A. Kinds of Meetings and Requirements
B. Waiver of Notice of Meeting of Stockholders and
Members
C. Absence or Refusal to Conduct Meeting of Stockholders
and Members
D. Meeting Postponement
E. Manner of Votations for Stockholders and Members
Case:
​ Cezar Yatco Real Estate Services Inc. vs. Bel Air Village
Association, Inc., G R. No. 211780, November 21, 2018
F. Place of Meetings
G. Notice of Meetings of Stockholders and Members
H. Notice of Meetings of Directors and Trustees
Case:
​ Lopez Realty vs. Tanjangco, G.R. No.154291, November 12, 2014
I. Quorum in Meetings
Case:
​ Balinghasay vs. Castillo G.R. No. 185664, April 8, 2015
​ Lim vs. Moldex Land, G.R. No.206038, January 25, 2017
​ Lanuza vs. Court of Appeal, 454 SCRA 54

J. Right to Vote of Secured Accreditors and Administrators

K. Voting in Cases of Joint Ownership of Stock
L. Voting Right for Treasury Shares
M. Voting Trusts
Case:
​ Lee vs. Court of Appeals, G.R. No.93695, February 2, 1992

VII. Stocks and Stockholders (Sections 59 to 72)

A. Subscription Contract
Cases:
​ Delpher Trades Corporation vs. Intermediate Appellate Court, 157
SCRA 349
​ Commissioner of Internal Revenue vs. First Express Company,
Inc., 589 SCRA 253
​ Halley vs. Printwell Inc, 649 SCRA 116
B. Pre-incorporation Subscription
C. Consideration for Stocks
D. Certificate of Stock and Transfer of Shares
Cases:
​ Teng vs. Securities and Exchange Commission, G.R. No.184332,
February 17, 2016
​ Fleischer vs. Botica Nolasco Co., Inc., 47 Phil. 583
​ Ferro Chemicals, Inc. vs. Garcia, 804 SCRA 528

7
 ​ Rural Bank of Salinas, Inc. vs. CA, 210 SCRA 510
​ Interport Resources Corporation vs. Securities Specialist, Inc., 792
SCRA 155
​ Batangas Laguna Tayabas Bus Company, Inc. vs. Bitanga, 362
SCRA 635
​ F.S. Velasco, Inc. vs. Madrid, G.R. No.208844, November 10,
2015
​ Abejo vs. Dela Cruz, 149 SCRA 654
​ TCL Sales Corporation vs. Court of Appeals 349 SCRA 35
​ Reyes vs. Regional Court of Makati, Branch 142, 561 SCRA 593

E. Indivisibility of Subscription
F. Liability of Directors for Watered Stocks
G. Interest on Unpaid Subscriptions
H. Payment of Balance of Subscription
I. Delinquency Sale
J. Effect of Delinquency
K. Procedure in Issuing New Certificates of Stock in Lieu of
those Which have been Lost, Stolen, or Destroyed

VIII. Corporate Books and Records (Sections 73 to 74)

A. Books to be Kept
Cases:
Guy vs. Guy G.R. No.184068 April 19, 2016
Lanuza vs. Court of Appeal, 454 SCRA 54

B. Right to Inspection
Cases:
Gokongwei Jr. vs. Securities and Exchange Commission, 178 Phil
266
Philippine Associated Smelting and Refining Corporation
(PASAR) vs. Lim G.R. NO.172948, October 5, 2016
Puno vs. Puno Enterprises, 599 SCRA 585

C. Refusal on the Part of the Corporation on the Request for

Inspection
Cases:
Terelay Investment and Development Corp. vs. Yulo, 765 SCRA 1
Gokongwei Jr. vs. Securities and Exchange Commission, 178 Phil
266

D. Stock Transfer Agent

E. Right to Financial Statements

8
IX. Merger and Consolidation (Sections 75 to 79)
A. Merger vs. Consolidation
Case:
Mcleod vs. National Labor Relations Commission, 512 SCRA 222

B. Steps in Merger or Consolidation

Cases:
Bank of Commerce vs. Radio Philippine Network, Inc.,722 SCRA
520
Mindanao Savings and Loan Association, Inc., vs. Willkom, 364
SCRA 291

C. De Facto Merger
Case:
Bank of Commerce vs. Radio Philippine Network, Inc.,722 SCRA
520

D. Effects of Merger or Consolidation

Cases:
Global Business Holdings, Inc., vs. Surecomp Software, B.V., 633
SCRA 95
Philippine Geothermal Inc. Employees Labor Union vs. Unocal
Philippines, Inc., G.R. No.190187, September 28, 2016
Mindanao Savings and Loan Association, Inc., vs. Willkom, 364
SCRA 291

X. Appraisal Right (Sections 80 to 85)

A. Raison d’etre for the Grant
Case:
Cua Jr. vs. Tan, 607 SCRA 645

B. When the Right of Appraisal may be Exercised

C. How Right is Exercised and Its Implication
D. When Right to Payment Ceases
E. Who Bears Costs of Appraisal

XI. Non-stock Corporation (Sections 86 to 94)

A. Nature and Purposes of Non-Stock Corporations
B. Membership: Right to Vote
C. Termination of Membership
D. Election and Term of Trustees
E. List of Members and Proxies; Place of Meetings
F. Rules on Distribution of Assets
G. Plan of Distribution of Assets

9
XII. Close Corporation (Sections 95 to 104)
A. Definition and Nature
Case:
San Juan Structural and Steel Fabricators vs. Court of Appeals,
296 SCRA 631
B. Articles of Incorporation
C. Restrictions on Transfer of Shares
D. Effects of Issuance or Transfer of Stock in Breach of
Qualifying Conditions
Case:
Florete vs. Florete Jr. G.R. No.223321, April 2, 2018
E. Agreements by Stockholders
F. When a Board Meeting is Unnecessary or Improperly
Held
Case:
Manuel R. Dulay Enterprises, Inc., vs. Court of Appeals, 225
SCRA 678
G. Preemptive Right
H. Amendment of Articles of Incorporation
I. Deadlocks
J. Withdrawal of Stockholder or Dissolution of Corporation

XIII. Special Corporations (Sections 105 to 132)

A. Educational Corporations
B. Religious Corporations
Cases:
Roman Catholic Administrator of Davao, Inc., 120 Phil 596
Register of Deeds of Rizal vs. Ung Sui Si Temple, G.R. No.L-6776,
May 21, 1955
Iglesia Filipina Independiente vs. Heirs of Taeza, G.R. No.179597
Iglesia Evangelica Metodista en Las Islas Filipinas vs. Lazaro,
G.R. No. 184088, July 6, 2010
C. One Person Corporations

XIV. Dissolution
A. Methods of Dissolution
B. Voluntary Dissolution Where No Creditors are Affected
C. Voluntary Dissolution where Creditors are Affected
D. Dissolution by Shortening Corporate Term
E. Withdrawal of Request and Petition for Dissolution
F. Involuntary Dissolution
Cases:
Aguirre vs. FBQ+7, INC, 688 SCRA 242
Chua vs. People G.R. No.216146, August 24, 2016

10
 G. Liquidation
Cases:
Yu vs. Yukayguan 589 SCRA 588
Clemente vs. CA, 242 SCRA 717
Rebollido vs. Court of Appeals, 170 SCRA 800
Alabang Development Corporation vs. Alabang Hills Village
Association, 724 SCRA 321
Rich vs. Paloma III, G.R. No.210538 March 7, 2018
Vigilla vs. Philippine College of Criminology, Inc., 698 SCRA 247

XV. Foreign Corporations (Sections 140 to 153)

A. Definition and Rights of Foreign Corporations
B. “Doing Business”
Cases:
Agilent Technologies Singapore (PTE) Ltd. vs. Integrated Silicon
Technology Philippines, April 14, 2004, 427 SCRA 593
Merril Lynch Futures, Inc. vs. Court of Appeals and Spouses Lara,
July 24, 1992, 211 SCRA 824
Commissioner of Internal Revenue vs. Japan Airlines, October 4,
1991, 202 SCRA 450
General. Corp. of the Phils. Vs. Union Insurance Society of
Canton and Fireman’s Fund Insurance September 19, 1950, 87
Phil. 313
Eriks PTE Ltd. vs. Court of Appeals and Enriquez, February 6,
1997, 335 SCRA 229
Air Canada vs. CIR, January 11, 2016, G.R. No. 169507

C. Application for a License

D. Issuance of a License
E. Resident Agent
F. Service of process on Resident Agent
G. Law Applicable
H. Amendments to Articles of Incorporation or Bylaws of
Foreign Corporations
I. Amended License
J. Merger or Consolidation Involving a Foreign
Corporation Licensed in the Philippines
K. Doing Business Without a License
Cases:
Cargill vs. Intra Strata Assurance Corp., March 15, 2010, G.R.
No. 168266
B. Van Zuiden Bros., Ltd. vs. GTVL Marketing Industries, Inc.,
May 28, 2007, 523 SCRA 233

11
 L. Revocation of License
M. Issuance of Certificate of Revocation
N. Withdrawal of Foreign Corporations

XVI. Derivative Suit

A. Basis
Cases:
Villamor Jr. vs Umale 736 SCRA 325
Ching vs Subic Bay Golf and Country Club, 734 SCRA 569
Yu vs Yukayguan, 489 SCRA 588
B. Requisites for Filing
Cases:
Western Institute of Technology Inc. et al vs Salas, et al., 278
SCRA 216
Lopez Realty vs. Spouses Tanjangco, G.R. No 154291, 12
November 2014
Asset Privatization Trust vs Court of Appeals, 300 SCRA 579
Republic Bank vs. Cuaderno, 19 SCRA 671
Ang vs. Spouses Ang, GR. No. 201675, June 19, 2013
Yu vs Yukayguan, 489 SCRA 588
Forest Hills Golf and Country Club., Inc., vs. Fil-estate properties,
Inc., G.R. No. 206649, July 20, 2016
Bitong vs. Court of Appeals 292 SCRA 503
Bangko Sentral ng pilipinas vs. Campa Jr., G.R.No. 185979,
March 16, 2012
Legaspi Towers 300, Inc., vs. Muer, GR. No. 170783, June 18,
2012
Villamor, Jr. vs. Umale, 736 SCRA 325
Ago Realty & Development Corporation vs. Ago, GR. No. 210906
& 211203, October 16, 2019

XVII. Financial Rehabilitation and Insolvency Act of 2010

(R.A. 10142)

Securities Regulation Code (R.A. 8799)

I. Title and Definition (Sections 1 to 3)
A. State Policy
Cases:
People vs. Fernandez, 65 Phil. 675, June 15, 1938
PSE vs. CA, 281 SCRA 232, October 27, 1997

B. Securities, Defined
Cases:
Virata vs. Ng Wee G.R. No.220926 et, al., July 5, 2017
SEC vs. Prosperity.com, 664 SCRA 28, January 25, 2012

12
 Power Homes Unlimited Corp. vs. SEC, 546 SCRA 567, February
26, 2008

II. Securities and Exchange Commission (Sections 4 to 7)

A. Power of the SEC
Cases:
SEC vs. Universal Rightfield Holdings, Inc., G.R. No. 181381,
July 20, 2015
PSE vs. CA, 281 SCRA 232

B. Transfer of Jurisdiction
Cases:
Cacho vs. Balagtas G.R. No.202974, February 7, 2018
Ku vs. RCBC Securities, Inc., G.R. No. 219491, October 17, 2018
Ellao vs. Batelec I, G.R. No. 209166, July 9, 2018
Cosare vs. Broadcom Asia, Inc., G.R. No.201298, February 5,
2014
Cacho vs. Balagtas G.R. No.202974, February 7, 2018
Belo Medical Group vs. Santos, G.R. No.185894, August 30, 2017
Dy Teban Trading, Inc. vs.Dy, G.R. No.185647, July 26, 2017
Concorde Condominium Inc. vs. Baculio, G.R. No. 203678,
February 17, 2016
Philippine Communications Satellite Corp. vs. Sandiganbayan,
759 SCRA 242, June 17, 2015
Medical Plaza Makati Condominium Corp. vs. Cullen, 709 SCRA
110, November 11, 2013
Francisco vs. Del Castillo, G.R. No. 236726, September 14, 2021

III. Registration of Securities (Sections 8 to 15)

A. Mandatory registration Requirement
B. Exempt Securities
C. Exempt Transactions
Case:
Nestle Philippines Inc. vs. CA, 203 SCRA 504, November 13,
1991

D. Commodity Futures Contract

E. Procedure for Registration of Securities
F. Rejection and Revocation of Registration of Securities
Case:
PSE vs. CA, 281 SCRA 232

G. Amendment to the Registration Statement

H. Suspension of Registration
Case:
SEC vs. Universal Rightfield Holdings, Inc., G.R. No. 181381,
July 20, 2015

13
IV. Pre-need Plans (Section 16)

V. Reportorial Requirements (Sections 17 to 18)

A. Disclosure Rule
Case:
Philippine Veterans Bank vs. Callagan, G.R. No.191995, August
3, 2011

VI. Protection of Shareholders Interests (Section 19 to 23)

A. Tender Offer Rule
Case:
Cemco Holdings Inc. vs. National Life Insurance Co., 529 SCRA
355, August 7, 2007
B. Proxy Solicitations

VII. Prohibitions and Fraud, manipulation and INsider Trading

(Sections 24 to 27)
A. Manipulation of Security Prices
B. Fraudulent Transactions
C. Insider trading
Case:
SEC vs. Interport Resources Corporation, G.R. No. 135808,
October 6, 2008

VIII. Regulation of Security market Professionals (Sections 28 to 31)

A. Registration of Brokers, Dealers, Salesmen, and
Associated Persons
B. Revocations, refusal or Suspension of Registration of
Brokers, Dealers, Salesmen and Associated Persons
C. Transactions and Responsibility of Brokers ande Dealers

IX. Exchanges (Sections 32 to 38)

A. Prohibition on Use of Registered Exchanges; Regulation
of Over-the-Counter Markets
B. Registration of Exchanges
C. Segregation and Limitation of Functions of Members,
Brokers and Dealers
D. Powers with Respect to Exchanges and Other Trading
Markets
E. Registration of Innovative and Other Trading Markets
F. Independent Directors

14
 X. Registration, responsibilities, and oversight of Self-regulatory
Organizations (Sections 39 to 40)
A. Associations of Securities Brokers, and Dealers, and
Other Securities Related Organizations
B. Powers with respect to Self-Regulatory Organizations

XI. Acquisition and Transfer of Securities and Settlement of

Transaction in Securities (Sections 41 to 47)
A. Prohibition on Use of Unregistered Clearing Agency
B. Registration of Clearing Agencies
C. Evidentiary Value of Clearing Agency Record
D. Pledging a Security or Interest Therein
E. Issuer’s Responsibility for Wrongful Transfer to
Registered Clearing Agency
F. Power of the Commission with Respect to Securities
Ownership

XII. Margin and Credit (Sections 48 to 50)

A. Margin requirements
B. Restrictions on Borrowing by members, brokers, and
Dealers
Case:
Abacus Securities vs. Ampil G.R. No. 160016, February 27, 2006
C. Enforcement of Margin Requirement and Restrictions on
Borrowing

XIII. General Provisions (Sections 51 to 78)

A. Liabilities of Parties
B. Jurisdiction
Case:
Pua vs. Citibank N.A. 705 SCRA 684
Baviera vs. Paglinawan, 515 SCRA 170
C. Prescription of Action

III. REQUIREMENTS AND GRADING SYSTEM

Course Requirements Description Grade

Breakdown
Class Participation Recitation 25%
Quiz/Case Digest/Project 20%
Midterm & Final Examination Written Examination 50%
Attendance 5%
TOTAL 100%

15
IV. POLICIES
1. A perfect attendance shall merit substantial consideration in the final evaluation of the
student’s performance and fitness to pass the course. On the other hand, five (5) unjustified
absences shall be dealt with in accordance with the school’s policy on the matter.
2. Honesty is strictly enjoined. Students caught cheating in an exam or quiz shall automatically
get a grade of 5.
3. All students are required to wear proper attire and to observe proper decorum. Students
who do not observe the dress code and proper decorum shall be considered absent.
4. All students must come to class ready for recitation or quiz.

V. ABOUT THE PROFESSOR

Atty. Maria Jela Mendones Moran,LPT

Email Address: atty.mjmoran@gmail.com
Consultation Hours: By Appointment

Professional Background:
Clerk of Court V, Branch 21, Regional Trial Court, Naga City, a designated Special
Commercial Court and Cybercrime Court; Associate Professor, School of Law, University of
Nueva Caceres; Former Business Law Instructor, College of Accountancy, University of Saint
Anthony; Former Associate, Beriña & Associates Law and Notarial Offices; Former Legal
Consultant, Office of the Vice-Mayor, Municipality of Polangui, Albay; Former Business Law
& Taxation Instructor, Mountview College Inc., Naga City; Former Partner, Imperial
Beriña-Imperial Moran Avengoza Law Offices, Naga City; Founder, Know Your Rights
Philippines (Batas Pilipinas)

16