Practice question
Siblings who own shares dispute solely the division of their deceased parent’s estate, including inherited shares. The actual allegations establish only hereditary entitlements, not enforcement of internal corporate rights. They call the complaint derivative. Which distinction follows Reyes?
- Shares as estate assets do not alone turn an inheritance controversy into a derivative suit
- Any mention of shares makes inheritance intra-corporate
- A derivative caption settles every jurisdictional inquiry
- Sibling status necessarily establishes corporate wrongdoing
- Every estate dispute belongs exclusively to the SEC
Legal references
- Reyes v RTC Makati GR165744 August11,2008 MAIN relationship and controversy tests: https://lawphil.net/judjuris/juri2008/aug2008/gr_165744_2008.html
- Gonzales v GJH Land GR202664 November10,2015 MAIN designation guidelines: https://lawphil.net/judjuris/juri2015/nov2015/gr_202664_2015.html
Answer this question in flashcards to review your response and continue practicing.