Government of the Philippine Islands v. El Hogar Filipino, 50 Phil. 399 Facts: This is a quo warranto proceeding instituted by Government of the Philippine Islands against El Hogar Filipino is the first corporation organized in the Philippine Islands in 1910 under the first Corporation Law (Act No. 1459) enacted on March 1, 1906. In 1910, its capital stock in the association had been subscribed to the amount of P150,000 of which the sum of P10,620 had been paid in. Under the law as it then stood, the capital of the Association was not permitted to exceed P3,000,000, but by Act No. 2092, passed December 23, 1911, the statute was so amended as to permit the capitalization of building and loan associations to the amount of ten millions. Soon thereafter the association took advantage of this enactment by amending its articles so as to provide that the capital should be in an amount not exceeding the then lawful limit. From the time of its first organization the number of shareholders has constantly increased, with the result that on December 31, 1925, the association had 5,826 shareholders holding 125,750 shares, with a total paid-up value of P8, 703, 602.25. During the period of its existence prior to the date last above-mentioned the association paid to withdrawing stockholders the amount of P7,618,257,.72; and in the same period it distributed in the form of dividends among its stockholders the sum of P7,621,565.81. The government of the Philippines instituted a quo warranto proceeding based on 17 causes of actions. Its purpose is to deprive it with corporate franchise, exclude it from all corporate rights and privileges, and effectits dissolution. Summary of the causes of action: First Cause of Action - El Hogar Filipino violates subsection 5 of section 13 of the Corporation Law for illegally holding real property it acquired from foreclosure sales for a period in excess of five years. The law states, that while corporations may loan funds upon real estate security and purchase real estate when necessary for the collection of loans, they shall dispose of real estate so obtained within five years after receiving the title. Second Cause:
Government of the Philippine Islands v. El Hogar Filipino, 50
Phil. 399Facts: This is a quo warranto proceeding instituted by
Government of the Philippine Islands against
El Hogar Filipino is the first corporation organized in the
Philippine Islands in 1910 under the first Corporation Law (Act No.
1459) enacted on March 1, 1906. In 1910, its capital stock in the
association had been subscribed to the amount of P150,000 of which
the sum of P10,620 had been paid in. Under the law as it then
stood, the capital of the Association was not permitted to exceed
P3,000,000, but by Act No. 2092, passed December 23, 1911, the
statute was so amended as to permit the capitalization of building
and loan associations to the amount of ten millions. Soon
thereafter the association took advantage of this enactment by
amending its articles so as to provide that the capital should be
in an amount not exceeding the then lawful limit. From the time of
its first organization the number of shareholders has constantly
increased, with the result that on December 31, 1925, the
association had 5,826 shareholders holding 125,750 shares, with a
total paid-up value of P8, 703, 602.25. During the period of its
existence prior to the date last above-mentioned the association
paid to withdrawing stockholders the amount of P7,618,257,.72; and
in the same period it distributed in the form of dividends among
its stockholders the sum of P7,621,565.81.The government of the
Philippines instituted a quo warranto proceeding based on 17 causes
of actions. Its purpose is to deprive it with corporate franchise,
exclude it from all corporate rights and privileges, and effectits
dissolution.Summary of the causes of action:First Cause of Action -
El Hogar Filipino violates subsection 5 of section 13 of the
Corporation Law for illegally holding real property it acquired
from foreclosure sales for a period in excess of five years. The
law states, that while corporations may loan funds upon real estate
security and purchase real estate when necessary for the collection
of loans, they shall dispose of real estate so obtained within five
years after receiving the title.Second Cause:
