Practice question
An insolvent company distributes corporate assets to shareholders while leaving creditors unpaid. A shareholder says the distribution is immune because that shareholder fully paid all subscriptions. Which Halley principle is relevant?
- Full payment always immunizes every asset received.
- Only unpaid subscribers can ever be affected.
- Corporate assets improperly distributed to shareholders can be reachable for creditors under the doctrine despite full subscription payment.
- The distribution automatically converts creditors into directors.
- Every unrelated personal asset must therefore be forfeited.
Legal references
- Halley v. Printwell, GR157549, May30 2011, main decision: https://lawphil.net/judjuris/juri2011/may2011/gr_157549_2011.html
- Enano-Bote v. Alvarez, GR223572, November10 2020, main decision: https://lawphil.net/judjuris/juri2020/nov2020/gr_223572_2020.html
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