Practice question
A shareholder’s personal lender seeks to seize a delivery truck owned by the corporation solely because the debtor owns 70% of its shares. No independent basis or piercing ground exists. Which is correct?
- Share ownership alone does not make the corporate truck the shareholder’s personal property
- The lender automatically owns the truck
- A majority shareholder directly owns every corporate asset
- Corporate assets are always free for personal creditors to take
- The corporation loses personality once a shareholder borrows
Legal references
- https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/86463 — Republic Act No. 11232, sections 2 and 35
- https://lawphil.net/judjuris/juri2013/mar2013/gr_167530_2013.html — PNB v. Hydro Resources Contractors Corporation, G.R. Nos. 167530, 167561 and 167603, March 13, 2013, main opinion
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