Philippine Bar review · Question

Practice question: Piercing the Corporate Veil

Multiple Choice Hard

Practice question

Two related corporations share directors and an address. A worker has a wage claim against one. Their separate records and actual operations are maintained, and no wrongful manipulation or causal injury involving the other is established. The worker asks the tribunal to disregard both personalities because common management alone supposedly proves fraud. Which is correct?
  1. Shared directors always establish fraud conclusively
  2. The tribunal must require the additional grounds and proof; relatedness alone is insufficient
  3. Every corporate group has only one legal person
  4. One unpaid claim automatically proves fraudulent incorporation
  5. The worker’s actual employer necessarily escapes its own debt

Legal references

  • Maricalum Mining, G.R. 221813 and 222723, July 23, 2018: https://lawphil.net/judjuris/juri2018/jul2018/gr_221813_2018.html

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