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All ▸ Bar 2024 ▸ COMMERCIAL AND TAXATION LAWS ▸ I. CORPORATION LAW (R.A. No. 11232, Revised Corporation Code) ▸ A. General Principles ▸ 1. Nature and Attributes - Section 2

Question

A. General Principles: Nature and Attributes - Section 2

Scenario: Jane and John are business partners who own a manufacturing company. Due to financial difficulties, they were unable to pay the wages of their employees for several months. As a result, the employees filed a complaint for non-payment of wages with the Department of Labor and Employment (DOLE).

During the course of the investigation, it was uncovered that Jane and John had been diverting company funds for their personal use and engaging in fraudulent activities. The employees are seeking to hold both Jane and John personally liable for the non-payment of wages and other labor-related claims.

Issue:

  1. Can the employees hold Jane and John personally liable for the non-payment of wages and other labor-related claims? Explain.


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Bar Review Question: A. General Principles: Nature and Attributes - Section 2 Scenario: Jane and John are business part