Practice question
A group seeks substantive consolidation of related companies under Section 7. It shows common control and common creditors but refuses to establish voluntary accession of the related enterprise or benefit to all concerned. It says procedural joinder automatically supplies substantive consolidation. Which is correct?
- Joinder is distinct; the stated substantive-consolidation conditions cannot simply be omitted
- Every joinder merges all assets
- Common creditors alone suffice
- Voluntary accession is legally irrelevant
- The court must ignore separate personality in every group case
Legal references
- RA 10142 (FRIA), Sections 4, 7, 9, 17-18, 31-35, 64-70 and 115-121: https://lawphil.net/statutes/repacts/ra2010/ra_10142_2010.html
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