Practice question
An investor buys shares of a corporation whose only substantial asset is a warehouse. The investor claims the share purchase itself makes the shares immovable because the warehouse cannot be moved. Which is correct?
- Every shareholder directly owns the warehouse building
- Every investment instrument follows the physical nature of corporate assets
- The shares remain personal property under Article 417; the corporation’s warehouse is a distinct asset
- All shares become land titles whenever the corporation acquires land
- The warehouse becomes movable because shares exist
Legal references
- https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html — Civil Code, Articles 415–417
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