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    Acclaw4 Notes

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    Jeayan Casona
    The document discusses two doctrines that apply to corporations under the Revised Corporation Code of the Philippines (RCCP): separate juridical personality and limited liability. Separate juridical personality means that a corporation is recognized as a separate legal entity from its owners or shareholders. Limited liability means that shareholders are not personally liable for the acts or debts of the corporation. These doctrines protect both the corporation and its shareholders from liability arising from corporate operations.

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    Acclaw4 Notes

    Uploaded by

    Jeayan Casona
    10 views1 page
    The document discusses two doctrines that apply to corporations under the Revised Corporation Code of the Philippines (RCCP): separate juridical personality and limited liability. Separate juridical personality means that a corporation is recognized as a separate legal entity from its owners or shareholders. Limited liability means that shareholders are not personally liable for the acts or debts of the corporation. These doctrines protect both the corporation and its shareholders from liability arising from corporate operations.

    Original Description:

    RCCP notes for Accounting Law 4.

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    The document discusses two doctrines that apply to corporations under the Revised Corporation Code of the Philippines (RCCP): separate juridical personality and limited liability. Separate juridical personality means that a corporation is recognized as a separate legal entity from its owners or shareholders. Limited liability means that shareholders are not personally liable for the acts or debts of the corporation. These doctrines protect both the corporation and its shareholders from liability arising from corporate operations.

    Copyright:

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

    Acclaw4 Notes

    Uploaded by

    Jeayan Casona
    The document discusses two doctrines that apply to corporations under the Revised Corporation Code of the Philippines (RCCP): separate juridical personality and limited liability. Separate juridical personality means that a corporation is recognized as a separate legal entity from its owners or shareholders. Limited liability means that shareholders are not personally liable for the acts or debts of the corporation. These doctrines protect both the corporation and its shareholders from liability arising from corporate operations.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    The RCCP recognizes two doctrines that have been applied to corporations:

    Separate juridical personality and Limited Liability. These two doctrines protect both
    the corporation and its shareholders from liability arising from their corporate
    operations.
    Separate Juridical Personality: This doctrine relates to an issue of law known as
    "separate personality." When a corporation is created, it is recognized that it has a
    separate existence in law (its corporate existence) separate from its owners (its
    stockholders). This separate existence is based on the corporate entity having a
    personality that can be considered a legally distinct entity, as opposed to an existing
    body of persons (such as shareholders) who are not separate legal entities. The
    corporation is a creature of law. It does not exist by itself but in virtue of the laws of
    its creation, to with: its articles of incorporation or association and the law that
    created it. It is only through these laws that it is given corporate personality. A
    corporation has “juridical personality” and can transact business separate from its
    members. This means that it has a distinct legal existence from its members and can
    therefore sue and be sued separately from them.
    Limited Liability: This doctrine protects stockholders from being personally liable for
    any acts of their corporation. The prohibition against personal liability applies when
    shareholders have invested in the corporation and not in the stock of another
    person. This means that investors should not be liable for corporate actions such as
    fraud or negligence when they hold shares in their corporations.

    A corporation is considered to have separate personality from its shareholders. This


    means that corporations can act as an individual in certain areas. Limited Liability
    Corporations also have limited liability, which means its shareholders are not liable
    for what the company does or how much it owes to other people or businesses.

    In other words, If the company has a liability but because of the doctrine of
    “separate juridical personality”－corporations can act as an individual in certain
    areas and “limited liability”－its shareholders are not liable for what the company
    does or how much it owes to other people or businesses under Revised Corporation
    Code of the Philippines, then the shareholder is not liable for this.

    The doctrine of “separate juridical personality” is a legal principle that holds that a
    corporation is not the same as its shareholders. Thus, it does not share the same
    rights and obligations as its shareholders.

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