{"id":5391,"date":"2019-04-28T18:27:00","date_gmt":"2019-04-28T10:27:00","guid":{"rendered":"https:\/\/pnl-law.com\/blog\/?p=5391"},"modified":"2020-05-12T15:55:17","modified_gmt":"2020-05-12T07:55:17","slug":"intra-corporate-disputes-in-corporation-laws","status":"publish","type":"post","link":"https:\/\/pnl-law.com\/blog\/intra-corporate-disputes-in-corporation-laws\/","title":{"rendered":"Intra-Corporate Disputes in Corporation Laws"},"content":{"rendered":"\n<p>To determine whether or not a case involves an intra-corporate dispute, two tests are applied &#8211; the relationship test and the nature of the controversy test.<\/p>\n\n\n\n<!--more-->\n\n\n\n<p>Under the <strong>relationship test<\/strong>, there is an intra-corporate controversy when the conflict is:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>(1) between the <a href=\"https:\/\/pnl-law.com\/blog\/glossary-for-the-revised-corporation-code\/#Corporations\">corporation<\/a>, partnership, or association and the public;&nbsp;<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>(2) between the corporation, partnership, or association and the State insofar as its franchise, permit, or license to operate is concerned;&nbsp;<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>(3) between the corporation, partnership, or association and its <a href=\"https:\/\/pnl-law.com\/blog\/glossary-for-the-revised-corporation-code\/#Stockholders\">stockholders<\/a>, partners, members, or officers; and&nbsp;<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>(4) among the <a href=\"https:\/\/pnl-law.com\/blog\/glossary-for-the-revised-corporation-code\/#Stockholders\">stockholders<\/a>, partners, or associates themselves.<\/li><\/ul>\n\n\n\n<p>On the other hand, in accordance with the <strong>nature of controversy test<\/strong>, an intra-corporate controversy arises when the controversy is not only rooted in the existence of an intra-corporate relationship, but also in the enforcement of the parties&#8217; correlative rights and obligations under the Corporation Code and the internal and intra-corporate regulatory rules of the corporation. [Source: San Jose vs. Ozamiz, G.R. No. 190590, 12 July 2017]<\/p>\n\n\n\n<p>Jurisdiction over intra-corporate disputes has been transferred to regular courts, from the Securities and Exchange Commission (SEC), pursuant to Section 5.2 of the <a href=\"https:\/\/pnl-law.com\/blog\/securities-regulation-code-republic-act-no-8799-full-text\/\">Securities Regulation Code<\/a> (<a href=\"https:\/\/pnl-law.com\/blog\/securities-regulation-code-republic-act-no-8799-full-text\/\">Republic Act No. 8799<\/a>).&nbsp;<\/p>\n\n\n\n<p>The rules are provided under <a href=\"https:\/\/pnl-law.com\/blog\/interim-rules-of-procedure-for-intra-corporate-controversies-a-m-no-01-2-04-sc\/\">Interim Rules of Procedure for Intra-Corporate Disputes<\/a> (A.M. No. 01-2-04-SC. March 13, 2001).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>To determine whether or not a case involves an intra-corporate dispute, two tests are applied &#8211; the relationship test and the nature of the controversy test.<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1361,2],"tags":[1255,234,235,1316,1315,90,1254,1253],"class_list":["post-5391","post","type-post","status-publish","format-standard","hentry","category-corporate-law","category-litigation-category","tag-corporate-law","tag-corporation","tag-corporations","tag-intra-corporate-controversies","tag-intra-corporate-disputes","tag-philippines","tag-republic-act-no-11232","tag-revised-corporation-code"],"_links":{"self":[{"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/posts\/5391","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/comments?post=5391"}],"version-history":[{"count":2,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/posts\/5391\/revisions"}],"predecessor-version":[{"id":6326,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/posts\/5391\/revisions\/6326"}],"wp:attachment":[{"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/media?parent=5391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/categories?post=5391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/tags?post=5391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}