Case Digest on ESCANO V. FILIPINAS MINING CORP 74 PHIL 711 (1944 Fa!ts" A ga#nis$%ent &as se#'ein )a'o# o) Es!ano o'e# !e#tain s$a#es o) Fi*i+inas Mining Co#+o#ation na%e ,ne# Sa*'osa -,t &as $e* in es!#o& a*so - Fi*i+inas Mining Co#+o#ation. Des+ite t$at/ Sa*'osa %anage to se**/ s,-se0,ent*/ t$e sai s$a#es to eng2on &$o a*so *ate# on so* t$e sa%e to Stana# In'est%ent o) t$e P$i*i++ines. Fi*i+inas Mining Co#+o#ation t$en iss,e t$e !o##es+oning !e#ti)i!ates o'e# t$e sai s$a#es in )a'o# o) Stana# In'est%ent o) t$e P$i*i++ines. 3$e t#ia* !o,#t #,*e )o# Es!ano. Iss,e" $et$e# o# not t$e iss,an!e o)t$e !e#ti)i!ate o) sto!5 to Stana# &as 'a*i against t$e atta!$ing 6,g%ent !#eito# o) t$e o#igina* o&ne#.
De!ision" 3$e S,+#e%e Co,#t a))i#%e t$e e!ision o) t$e *o&e# !o,#t. Se!tion 8 o) t$e Co#+o#ation La&/ &$i!$ #e0,i#es t$at #egist#ation o) t#ans)e# o) s$a#es o) sto!5 ,+on t$e -oo5s o) t$e !o#+o#ation as a !onition +#e!eent to t$ei# 'a*iit against t$e !o#+o#ation an t$i# +a#ties/ is a*so a++*i!a-*e to ,niss,e s$a#es $e* - t$e !o#+o#ation in es!#o&. Aitiona* I%+o#tant Points )#o% t$e Case o) Es!ano" Reasons o) t$e La& Re0,i#ing Re!o#ing o) 3#ans)e# in t$e Co#+o#ate oo5s" (1 to ena-*e t$e !o#+o#ation to 5no& at a** ti%es &$o its a!t,a* sto!5$o*e#s a#e/-e!a,se %,t,a* #ig$ts an o-*igations eist -et&een t$e !o#+o#ation an its sto!5$o*e#s: (; to a))o# to t$e !o#+o#ation an o++o#t,nit to o-6e!t o# #e),se its !onsent tot$e t#ans)e# in !ase it $as an !*ai% against t$e sto!5 so,g$t to -e t#ans)e##e/ o# )o# an ot$e# 'a*i #eason: an/ ( to a'oi )i!titio,s o# )#a,,*ent t#ans)e#s.
III. No Regist#ation o) 3#ans)e# o) ,n+ai !*ai%? in t$e se!on +a#ag#a+$ o) se!tion @ 0,ote a-o'e oes not ne!essa#i* %ean t$ats,-s!#i+tion t$e#e s$o,* $a'e -eena +#e'io,s !a**!o#+o#ation - t$e -oa# o) a i#e!to#s. as an +o#tion o) t$e +#i!e #e%ains ,n+ai/ t$e $as !*ai% onAs t$e*ong s$a#es/ +a%ent )o# &$i!$ it %a e%an eit$e# on t$e ag#ee ate o) +a%ent o#/ i) t$e#e -e no s,!$ ag#ee ate/ - %a5ing a !a** at an ti%e in a!!o#an!e &it$ se!tion @7 o) t$e Coe. 3$e !o#+o#ation %a $o&e'e# ag#ee to #e!o# a t#ans)e# a*t$o,g$ t$e#e sti** #e%ains an ,n+ai -a*an!e on t$e s,-s!#i+tion/ +#o'ie t$e t#ans)e#ee ass,%es t$e o-*igation to +a t$e ,n+ai -a*an!e. IV. Re%e i) Regist#ation Re),se 3$e #ig$t to $a'e t$e t#ans)e# #egiste#e eists )#o% t$e ti%e o) t$e t#ans)e# an it is to t$e t#ans)e#ee=s -ene)it t$att$e #ig$t -e ee#!ise ea#*. Ho&e'e#/ sin!e t$e *a& oes not +#es!#i-e an +e#io &it$in &$i!$ t$e #egist#ation s$o,* -e e))e!te/ t$e a!tion to en)o#!e t$e #ig$t oes not a!!#,e ,nti* t$e#e $as -een a e%an an a #e),sa* to #e!o# t$e t#ans)e#. I) t$e !o#+o#ation s$o,* &#ong),** #e),se to #e!o# t$e t#ans)e# o# iss,e a ne& !e#ti)i!ate in )a'o# o) t$e t#ans)e#ee/ t$e *atte# %a +etition t$e !o,#t )o# a &#it o) %ana%,s to !o%+e* t$e
!o#+o#ation to o so an t$e &#it &i** -e g#ante +#o'ie it is s$o&n t$at t$e t#ans)e#ee $as not ot$e# +*ain/ s+ee an ae0,ate #e%e an t$at t$e#e a#e no ,n+ai !*ai%s against t$e sto!5s &$ose t#ans)e# is so,g$t to -e #e!o#e.
