Practice question
After a private corporation has validly acquired personality, several founders sell their shares and officers change. A creditor argues that every personnel or ownership change necessarily creates a different legal being and extinguishes the original entity. No dissolution or restructuring event is established. Which feature in Section 2 answers the claim?
- A corporate logo controls existence
- Every officer is the corporation personally
- A change of shareholder automatically erases all corporate relations
- The corporation’s right of succession supports continuity despite such changes
- The creditor may dissolve the corporation by assertion
Legal references
- RA 11232, Sections 2 and 18: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/86463
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