Practice question
Two shareholders litigate an unrelated personal loan having no corporate-rights connection. Assuming those complete facts, what does the controversy test prevent?
- Automatic classification as intra-corporate based only on share ownership
- Every court hearing the debt
- Proof of the loan
- Application of ordinary civil rules
- A debtor’s right to defend
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
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