I.HISTORICAL BACKGROUND1.The Philippine Corporate LawWhen the Philippine !a"e #n$er A"eri!an o%erei&nt'( attention wa $rawn to the )a!t that there wa no entit' in Spanih law e*a!tl' !orrepon$in& to the notion +!orporation, in -n&lih an$ A"eri!an law. the Philippine Co""iion ena!te$ the Corporation Law /A!t No. 10123( to intro$#!e the A"eri!an !orporation into the Philippine a the tan$ar$ !o""er!ial entit' an$ to haten the $a' when the o!ie$a$ an4ni"a o) the Spanih law wo#l$ 5e o5olete. The tat#te i a ort o) !o$i6!ation o) A"eri!an Corporate Law.Har$en %. Benet Conoli$ate$ 7inin& Co.( 18 Phil. 101 /12993.:.The Corporation LawThe 6rt !orporate tat#te( the Corporation Law( or A!t No. 1012( 5e!a"e e;e!ti%e on 1 April 12"eal a"en$"ent $#rin& it ?0 'ear hitor'. It rapi$l' 5e!a"e anti@#ate$ an$ not a$apte$ to the !han&in& ti"e.9.The Corporation Co$eThe preent Corporation Co$e( or Bata Pa"5ana Bl&. =8( 5e!a"e e;e!ti%e on 1 7a' 128!orporation relationhip/53 Contra!t#al Relationhip Le%el( whi!h !oni$er that the !orporate ettin& i at on!e a !ontra!t#al relationhip on )o#r /03 le%elE>Between the !orporation an$ it a&ent or repreentati%e to a!t in the real worl$( #!h a it $ire!tor an$ it oA!er( whi!h i &o%erne$ alo 5' the Law on A&en!'.>Between the !orporation an$ it harehol$er or "e"5er.>Between an$ a"on& the harehol$er in a !o""on %ent#re. an$>Between the !orporation an$ thir$>partie or +o#ti$er,( whi!h i eentiall' &o%erne$ 5' Contra!t Law.0.Theorie on Ior"ation o) CorporationE/a3 Theor' o) Con!eion /Ta'a& %. Benet Conoli$ate$ In!.( := SCRA :0: G12=8H3To or&aniFe a !orporation that !o#l$ !lai" a B#ri$i!al peronalit' o) it own an$ trana!t 5#ine a #!h( i not a "atter o) a5ol#te ri&ht 5#t a pri%ile&e whi!h "a' 5e enBo'e$ onl'#n$er #!h ter" a the State "a' $ee" ne!ear' to i"poe /*>!).An& P#e J Co. %. Se!. o) Co""er!e an$ In$#tr'( 1 SCRA =01 G12=:H3.Be)ore a !orporation "a' a!@#ire B#ri$i!al peronalit'( the State "#t &i%e it !onent eitherin the )or" o) a pe!ial law or a &eneral ena5lin& a!t( an$ the pro!e$#re an$ !on$ition pro%i$e$ #n$er the law )or the a!@#iition o) #!h B#ri$i!al peronalit' "#t 5e !o"plie$ with. The )ail#re to !o"pl' with the tat#tor' pro!e$#re an$ !on$ition $oe not warrant a 6n$in& that #!h ao!iation a!hie%e$ the a!@#iition o) a eparate B#ri$i!al peronalit'( e%en when it a$opt et o) !ontit#tion an$ 5'>law. *International -*pre Tra%el J To#r Ser%i!e( In!. %. Co#rt o) Appeal( 909 SCRA =?0 /:$epen$en!e on the li%e o) thoe who !o"poe it e%en a it enBo' !ertain ri&ht an$ !on$#!t a!ti%itie o) nat#ral peron.Re'noo( IC %. Co#rt o) Appeal(G.R. No. 11=1:0>:1( :: No%e"5er :