Scribd Logo
Upload

Welcome to Scribd!

  • 142 views

    Kulani 1

    Uploaded by

    Jeorge Ryan Mangubat
    The petitioner claimed rights as the heir of Carlos L. Puno, one of the incorporators of the respondent corporation, seeking to inspect corporate books and receive profits. The Court of Appeals dismissed the complaint as the petitioner did not establish paternity or filiation to Carlos Puno. The Supreme Court ruled that upon a shareholder's death, their heirs do not automatically become stockholders or acquire shareholder rights and privileges. The stocks must first be distributed in estate proceedings and recorded in corporate books. During this interim, the heirs are equitable owners but the executor holds legal title and rights until estate settlement.

    Copyright:

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

    Kulani 1

    Uploaded by

    Jeorge Ryan Mangubat
    142 views1 page
    The petitioner claimed rights as the heir of Carlos L. Puno, one of the incorporators of the respondent corporation, seeking to inspect corporate books and receive profits. The Court of Appeals dismissed the complaint as the petitioner did not establish paternity or filiation to Carlos Puno. The Supreme Court ruled that upon a shareholder's death, their heirs do not automatically become stockholders or acquire shareholder rights and privileges. The stocks must first be distributed in estate proceedings and recorded in corporate books. During this interim, the heirs are equitable owners but the executor holds legal title and rights until estate settlement.

    Original Description:

    succession

    Original Title

    KULANI.1

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The petitioner claimed rights as the heir of Carlos L. Puno, one of the incorporators of the respondent corporation, seeking to inspect corporate books and receive profits. The Court of Appeals dismissed the complaint as the petitioner did not establish paternity or filiation to Carlos Puno. The Supreme Court ruled that upon a shareholder's death, their heirs do not automatically become stockholders or acquire shareholder rights and privileges. The stocks must first be distributed in estate proceedings and recorded in corporate books. During this interim, the heirs are equitable owners but the executor holds legal title and rights until estate settlement.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    142 views1 page

    Kulani 1

    Uploaded by

    Jeorge Ryan Mangubat
    The petitioner claimed rights as the heir of Carlos L. Puno, one of the incorporators of the respondent corporation, seeking to inspect corporate books and receive profits. The Court of Appeals dismissed the complaint as the petitioner did not establish paternity or filiation to Carlos Puno. The Supreme Court ruled that upon a shareholder's death, their heirs do not automatically become stockholders or acquire shareholder rights and privileges. The stocks must first be distributed in estate proceedings and recorded in corporate books. During this interim, the heirs are equitable owners but the executor holds legal title and rights until estate settlement.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    KULANI.1 PUNO V PUNO ENTERPRISES, INC.

    , 599 SCRA 585


    FACTS: Carlos L. Puno, the decedent, was an incorporator of respondent Puno Enterprises, Inc.
    Petitioner Joselito Musni Puno, claiming to be an heir of Carlos L. Puno, initiated a complaint for
    specific performance against respondent. As surviving heir, he claimed entitlement to the rights
    and privileges of his late father as stockholder of respondent. The complaint thus prayed that
    respondent allow petitioner to inspect its corporate book, render an accounting of all the
    transactions, and give petitioner all the profits, earnings, dividends, or income pertaining to the
    shares of Carlos L. Puno. The lower court ruled in favor of the petitioner.
    On appeal, the CA ordered the dismissal of the complaint because the petitioner was not
    able to establish the paternity of and his filiation to Carlos L. Puno. Accordingly, the CA said that
    petitioner had no right to demand that he be allowed to examine respondents books. Moreover,
    petitioner was not a stockholder of the corporation but was merely claiming rights as an heir of
    Carlos L. Puno, an incorporator of the corporation.
    ISSUE: Whether the honorable court of appeals erred in not ruling that the Joselito Puno is entitled
    to the reliefs demanded he being the heir of the late Carlos Puno, one of the incorporators of
    respondent corporation.
    RULING: Upon the death of a shareholder, the heirs do not automatically become stockholders
    of the corporation and acquire the rights and privileges of the deceased as shareholder of the
    corporation. The stocks must be distributed first to the heirs in estate proceedings, and the transfer
    of the stocks must be recorded in the books of the corporation. The Corporation Code provides
    that no transfer shall be valid, except as between the parties, until the transfer is recorded in the
    books of the corporation. During such interim period, the heirs stand as the equitable owners of
    the stocks, the executor or administrator duly appointed by the court being vested with the legal
    title to the stock. Until a settlement and division of the estate is effected, the stocks of the decedent
    are held by the administrator or executor.[18] Consequently, during such time, it is the
    administrator or executor who is entitled to exercise the rights of the deceased as stockholder.
    MAIN POINT: Upon the death of a stockholder, the heirs do not automatically become
    stockholders of the corporation; neither are they mandatorily entitled to the rights and privileges
    of a stockholder.

    You might also like