Lex Rex Ph

Lao vs. Lao Digest (Oct. 2008)

Lao vs. Lao, G.R. No. 170585, October 6, 2008

Facts

Petitioners David Lao et al filed with the SEC against respondent Dionision Lao, president of Pacific Foundry Shop Corp (PFSC) praying that the former be declared as stockholders and directors of PFSC. Petitioners claimed that they are stockholders based on GIS filed with the SEC, and Respondent Lao is estopped from contesting the GIS. However, petitioners Lao have no certificates of shares in their name.

Issue

Whether mere inclusion of petitioners in the GIS of a corp constitutes as a sufficient proof that they are shareholders of the company.

Ruling

No. GIS is an insufficient proof. A CoS is the evidence of a holder’s interest and status in the corporation. It is prima facie evidence that the holder is a shareholder of a corporation.  Other evidence: AOI, STB, Minutes of Meeting, Sec. Certficate

Other Content You May Be Interested In:

Stocks vs. Bonds

Stocks Bonds Nature A unit of ownership of the company A loan to the company Profits over time Intended to appreciate in value through time

Read More »

Forum Shopping

Forum shopping is the institution of two or more actions involving the same parties for the same cause of action either simultaneously or successively, on

Read More »

Respect

One unavoidable consequence of everyone having the freedom to choose is that others may make different choices – choices we would not make for ourselves,

Read More »
en_USEnglish