Name: SARACHO, Nicole R. Topic: Topic: Dissolution and Liquidation Law or Proision Cited: Sec !"" o# Corporation Code, RA $%&&, Sec. !'( Title: )italiano )italiano A*uirre A*uirre ++ and idel idel A*uirre A*uirre -/%, +nc, et al. Source, Date: 0.R. No. !%1%%1, & 2anuar3 "1!4 acts: )italiano 5led in 6is indiidual capacit3 and on 7e6al# o# -/% a comp compla lain intt #or #or intr intra8 a8co corp rpor orat ate e disp disput ute, e, in9u in9unc ncti tion on,, insp inspec ecti tion on o# corp corpor orate ate 7oo 7oos s and and recor ecords ds and and dama dama*e *es s a*ai a*ains nstt Nat6 Nat6an anie iell and Prisc Priscila ila A*uir A*uirre re and Antnio Antnio De )illa )illa.. )ital )italian iano o dis disco coer ered ed t6at t6at t6e 0eneral +n#ormation S6eet ;0+S< o# -/%, a dissoled corporation in S=C 5led 5led 73 rancis rancisco co -. oco7o oco7o>s >s 6eirs, 6eirs, Nat6ani Nat6aniel el and Prisc Priscila ila,, as -/ -/%? %?s s pres presid iden entt and and secr secret etar ar3@ 3@tr trea easu surrer, er, respe espect cti iel el3 3 6ad 6ad su7stantie discrepancies respectin* t6e composition o# directors and su7scri7ers o# -/%. T6is prompted )italiano to write to t6e realB oar oard d o# Direc irecto torrs ;t6e t6e dir directo ectors rs reecte ected d in t6e t6e Articl ticle es o# +nco +ncorp rpor orat atio ion< n<,, repr epresen esente ted d 73 idel idel N. A* A*ui uirr rre e ;id ;idel el<. <. )ital italia iano no questioned t6e alidit3 and trut6#ulness o# t6e alle*ed stoc6olders meetin*. T6e realB oard alle*edl3 i*nored )italiano?s request. RTC *ran *rante ted d )ita )itali lian ano? o?s s comp compla lain intt due due to t6e t6e #ailu #ailurre o# t6e t6e respondents to attend t6e 6earin*. pon pon appeal, appeal, CA postul postulate ated d t6at t6at 73 irtue irtue o# Secti Section on !" !"", ", it deter determi mined ned t6at t6at )ital )italian iano?s o?s Compla Complaint int,, 7ein* 7ein* *eare *eared d towar towards ds t6e contin continuat uation ion o# -/% -/% 7usine 7usiness, ss, s6ould s6ould 7e dis dismis missed sed 7ecause 7ecause t6e corporation 6as lost its 9uridical personalit3. personalit3. Eoreoer, t6e CA 6eld t6at t6e trial court does not 6ae 9urisdiction to entertain an intra8corporate dispute w6en t6e corporation is alread3 a lread3 dissoled Hence, t6is petition. +ssue: +ssue: ;!< ;!< F6et6e F6et6err a corpor corporati ation? on?s s 7oard 7oard is rende rendere red d #unctu #unctus s oGcio oGcio a#ter dissolution. ;"< ;"< F6et6e F6et6err t6e RTC 6as 9urisd 9urisdict iction ion oer oer an intra8 intra8cor corpor porate ate dispute inolin* a dissoled corporation. Held: NO. NO. Petition Petition partiall3 *ranted. Rulin*: ;!< NO. NO. Sectio Section n !" !"" " o# t6e Corpor Corporati ation on Code Code pro6i pro6i7it 7its s a dis dissol soled ed corporation #rom continuin* its 7usiness, 7ut allows it to continue wit6 a limited personalit3 in order to settle and close its aairs, includin* its complete liquidation. T6e Supreme Court declared t6at t6e dissolution o# t6e corp corpor orati ation on does does not not rende enderr t6e t6e corp corpor orat atio ion? n?s s 7oar 7oard d o# dir directo ectors rs #unctus oGcio. T6e 7oard o# directors still 6as actual le*al aut6orit3 to direct t6e aairs o# t6e corporation wit6 respect to t6e windin* up and liquidation o# corporate aairs. T6e Hi*6 Court eIplained t6at Section !"" o# t6e Corporation Code allows t6e corporation to continue its eIistence #or t6ese limited
purposes. +t is necessar3 t6at t6e corporation retains t6e 7oard w6ic6 s6ould continue to act in its 7e6al# w6ile windin* up its 7usiness and liquidatin* its remainin* assets, i# an3, wit6in t6ree ;4< 3ears #rom dissolution. T6us, t6e Complaint 73 )itiliano is properl3 allowed to 7e 6eard onl3 #or relie# purposes #or it does not see to continue t6e corporate?s 7usiness. +ts aim is to determine and indicate an alle*ed stoc6older?s ri*6t to t6e return o# 6is stoc6oldin*s and to participate in t6e election o# directors, and a corporation?s ri*6t to remoe usurpers and stran*ers #rom its aairs. ;"< J=S. R.A. $%&& con#erred 9urisdiction oer intra8corporate controersies on RTC. T6e Court ela7orated t6at an intra8corporate case eIists ;a< i# t6e issue arose out o# intra8corporate or partners6ip relations> and ;7< i# t6e controers3 is intrinsicall3 connected wit6 t6e re*ulation o# t6e corporation or t6e en#orcement o# t6e parties? ri*6ts and o7li*ations under t6e Corporation Code and t6e internal re*ulator3 rules o# t6e corporation. T6e Court 6eld t6at t6ese two elements eIist in t6is case een t6ou*6 - 6ad 7een dissoled. +n addition, Section !'( o# t6e Corporation Code assures an a**rieed part3 t6at t6e corporation?s dissolution will not impair, muc6 less remoe, 6is@6er ri*6ts or remedies a*ainst t6e corporation, its stoc6olders, directors or oGcers. T6e dissolution o# t6e corporation simpl3 pro6i7its it #rom continuin* its 7usiness. T6e dissolution o# t6e corporation simpl3 pro6i7its it #rom continuin* its 7usiness. parties. T6us, a cause o# action inolin* an intra8corporate controers3 remains and must 7e 5led as an intra8 corporate dispute despite t6e su7sequent dissolution o# t6e corporation.
