De facto corporation created by special law?
QUESTION: A company was created under a special law. After that, the law creating it was declared invalid by the Supreme Court. Can you say that said corporation is a de facto corporation?
No, said company cannot be considered a de facto corporation. Private corporations can only be created under the general law on incorporation -- the Corporation Code of the Philippines (B.P. 68). Under special laws, only public corporations may be created. If a private corporation has been created under a special law, no valid attempt at legal incorporation has been made; hence, it cannot be claimed that said corporation has a de facto status.
No, said company cannot be considered a de facto corporation. Private corporations can only be created under the general law on incorporation -- the Corporation Code of the Philippines (B.P. 68). Under special laws, only public corporations may be created. If a private corporation has been created under a special law, no valid attempt at legal incorporation has been made; hence, it cannot be claimed that said corporation has a de facto status.
