Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 124 views

    Silverio v. FBCI

    Uploaded by

    Katherine Novela
    This case involves a dispute over possession of a 62-hectare property in Calatagan, Batangas between Esses Development Corporation, Tri-Star Farms, Inc. and Filipino Business Consultants, Inc. (FBCI) after Esses and Tri-Star failed to redeem the property from FBCI. FBCI claimed it was now the owner of the property since it purchased controlling shares in Esses and Tri-Star. However, the Supreme Court ruled that FBCI's acquisition of controlling shares did not make it the legal owner of the corporate property. A corporation has a separate legal personality from its shareholders, so shareholding only represents a proportional interest in corporate assets, not legal ownership

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Silverio v. FBCI

    Uploaded by

    Katherine Novela
    124 views2 pages
    This case involves a dispute over possession of a 62-hectare property in Calatagan, Batangas between Esses Development Corporation, Tri-Star Farms, Inc. and Filipino Business Consultants, Inc. (FBCI) after Esses and Tri-Star failed to redeem the property from FBCI. FBCI claimed it was now the owner of the property since it purchased controlling shares in Esses and Tri-Star. However, the Supreme Court ruled that FBCI's acquisition of controlling shares did not make it the legal owner of the corporate property. A corporation has a separate legal personality from its shareholders, so shareholding only represents a proportional interest in corporate assets, not legal ownership

    Original Title

    18.-Silverio-v.-FBCI.docx

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This case involves a dispute over possession of a 62-hectare property in Calatagan, Batangas between Esses Development Corporation, Tri-Star Farms, Inc. and Filipino Business Consultants, Inc. (FBCI) after Esses and Tri-Star failed to redeem the property from FBCI. FBCI claimed it was now the owner of the property since it purchased controlling shares in Esses and Tri-Star. However, the Supreme Court ruled that FBCI's acquisition of controlling shares did not make it the legal owner of the corporate property. A corporation has a separate legal personality from its shareholders, so shareholding only represents a proportional interest in corporate assets, not legal ownership

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    124 views2 pages

    Silverio v. FBCI

    Uploaded by

    Katherine Novela
    This case involves a dispute over possession of a 62-hectare property in Calatagan, Batangas between Esses Development Corporation, Tri-Star Farms, Inc. and Filipino Business Consultants, Inc. (FBCI) after Esses and Tri-Star failed to redeem the property from FBCI. FBCI claimed it was now the owner of the property since it purchased controlling shares in Esses and Tri-Star. However, the Supreme Court ruled that FBCI's acquisition of controlling shares did not make it the legal owner of the corporate property. A corporation has a separate legal personality from its shareholders, so shareholding only represents a proportional interest in corporate assets, not legal ownership

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Ricardo S. Silverio, Jr., Esses Development Corporation, and Tri-Star Farms, Inc. v.

    Filipino Business Consultants, Inc.


    G.R. No. 143312. August 12, 2005
    Carpio, J.:
    FACTS:

    The parties are wrangling over possession of a 62 hectare-land in Calatagan, Batangas


    after Esses and Tri-Star failed to redeem the Calatagan Property from FBCI. During the
    pendency of the case, FBCI filed with the an Urgent Ex-Parte Motion to Suspend Enforcement of
    Writ of Possession. FBCI pointed out that it is now the new owner of Esses and Tri-Star having
    purchased the substantial and controlling shares of stocks of the two corporations. It claimed that
    since it is now the owner of the controlling shares of stocks, the property must be awarded in its
    favor.

    ISSUE:

    Did FBCI become the owner of the subject property by reason of its purchase of the
    substantial and controlling shares of stocks of Esse and Tri-Star?

    HELD:

    No. FBCIs acquisition of the substantial and controlling shares of stocks of Esses and
    Tri-Star does not create a substantial change in the rights or relations of the parties that would
    entitle FBCI to possession of the Calatagan Property, a corporate property of Esses and Tri-Star.
    Esses and Tri-Star, just like FBCI, are corporations. A corporation has a personality distinct from
    that of its stockholders.

    A corporation is a juridical person distinct from the members composing it. Properties
    registered in the name of the corporation are owned by it as an entity separate and distinct from
    its members. While shares of stock constitute personal property, they do not represent property
    of the corporation. The corporation has property of its own which consists chiefly of real estate.
    A share of stock only typifies an aliquot part of the corporation's property, or the right to share in
    its proceeds to that extent when distributed according to law and equity, but its holder is not the
    owner of any part of the capital of the corporation. Nor is he entitled to the possession of any
    definite portion of its property or assets. The stockholder is not a co-owner or tenant in common
    of the corporate property.

    Thus, FBCIs alleged controlling shareholdings in Esses and Tri-Star merely represent a
    proportionate or aliquot interest in the properties of the two corporations. Such controlling
    shareholdings do not vest FBCI with any legal right or title to any of Esses and Tri-Stars
    corporate properties. As a stockholder, FBCI has an interest in Esses and Tri-Stars corporate
    properties that is only equitable or beneficial in nature. Even assuming that FBCI is the
    controlling shareholder of Esses and Tri-Star, it does not legally make it the owner of the
    Calatagan Property, which is legally owned by Esses and Tri-Star as distinct juridical persons.
    As such, FBCI is not entitled to the possession of any definite portion of the Calatagan Property
    or any of Esses and Tri-Stars properties or assets. FBCI is not a co-owner or tenant in common
    of the Calatagan Property or any of Esses and Tri-Stars corporate properties.

    You might also like