Practice question
A corporate recruitment agency and its foreign principal face a proved Section 10 money claim arising from their covered overseas employment contract. The agency’s sitting president and directors are properly impleaded and their relevant positions are established. They demand dismissal solely because the company has separate personality, while the principal says the insurance policy is the only available source of payment. Which is best?
- The special statutory liability of the agency and covered officers/directors must be applied, and insurance does not erase Section 10 liability
- Separate personality invariably defeats every special statute
- Insurance automatically releases everyone else
- Every shareholder in every Philippine corporation is liable for this claim
- Only the agency’s receptionist can be liable
Legal references
- RA8042, Sections 10 and 37-A; Ascent Skills v. Manuel, G.R. 249843, October 6, 2021: https://lawphil.net/judjuris/juri2021/oct2021/gr_249843_2021.html
- RA8042, Sections 10 and 37-A, as amended: https://lawphil.net/statutes/repacts/ra2010/ra_10022_2010.html
Answer this question in flashcards to review your response and continue practicing.