case digest for corporation law
National Coal Co. v. CIR
Facts: The National Coal Co.(NCC) was created by a special law and was enacted by virtue of Act 2705 in order to develop a coal industry. It was engaged in coal mining on reserved lands belonging to the government.
The National Coal Co.(NCC) filed a case against the CIR for the recovery of sum of money it paid on protest as specific tax on 24,089 tons of coals claiming exemption to tax pursuant to Sec. 14 and 15 of Act 2719.
Issue: Whether or not NCC is a private corporation?
Held: Plaintiff is a private corporation. The mere fact that the government is a majority stockholder of the corporation does not make the corporation. Act 2705 as amended by Act 2822 makes it subject to all the provision of the corporation law.
As a private corporation, it has no greater rights, powers or privileges than any other corporation which may be organized for the same purpose under the corporation law and certainly it was not the intention of the legislature to give preference or right or privilege over other legitimate private corporation in the mining of coal.
NCC is required to pay taxes pursuant to Section 1496 of the Administrative Code. Moreover, Act 2719 is applicable only to lessee or owner of coal bearing lands which NCC is not.
PHILIPPINE SOCIETY v COA
Facts: Petitioner was incorporated as a juridical entity over 100 years ago by virtue of Act No. 1285. The petitioner at the time it was created, was composed of animal aficionados and animal propagandists. At the time of the enactment of Act
No. 1285, the original Corporation Law Act No. 1459, was not yet in existence. Act No. 1285 antedated both Corporation
Law and the Constitution of SEC. When COA sought to conduct an audit survey. The petitioner protested on the ground that it was a private entity hence, not under the jurisdiction of COA.
Issue: Whether petitioner qualifies as a government agency that may be subject to audit by COA.
Ruliing: No. The fact that a certain
Facts: The National Coal Co.(NCC) was created by a special law and was enacted by virtue of Act 2705 in order to develop a coal industry. It was engaged in coal mining on reserved lands belonging to the government.
The National Coal Co.(NCC) filed a case against the CIR for the recovery of sum of money it paid on protest as specific tax on 24,089 tons of coals claiming exemption to tax pursuant to Sec. 14 and 15 of Act 2719.
Issue: Whether or not NCC is a private corporation?
Held: Plaintiff is a private corporation. The mere fact that the government is a majority stockholder of the corporation does not make the corporation. Act 2705 as amended by Act 2822 makes it subject to all the provision of the corporation law.
As a private corporation, it has no greater rights, powers or privileges than any other corporation which may be organized for the same purpose under the corporation law and certainly it was not the intention of the legislature to give preference or right or privilege over other legitimate private corporation in the mining of coal.
NCC is required to pay taxes pursuant to Section 1496 of the Administrative Code. Moreover, Act 2719 is applicable only to lessee or owner of coal bearing lands which NCC is not.
PHILIPPINE SOCIETY v COA
Facts: Petitioner was incorporated as a juridical entity over 100 years ago by virtue of Act No. 1285. The petitioner at the time it was created, was composed of animal aficionados and animal propagandists. At the time of the enactment of Act
No. 1285, the original Corporation Law Act No. 1459, was not yet in existence. Act No. 1285 antedated both Corporation
Law and the Constitution of SEC. When COA sought to conduct an audit survey. The petitioner protested on the ground that it was a private entity hence, not under the jurisdiction of COA.
Issue: Whether petitioner qualifies as a government agency that may be subject to audit by COA.
Ruliing: No. The fact that a certain