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    Razon Vs Iac (207 Scra 510)

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    Rivera Meriem Grace Mendez
    Vicente Chuidian filed a complaint against Enrique Razon for the delivery of stock certificate No. 003 representing 1,500 shares in E. Razon, Inc. (ERI) that were originally issued in the name of the late Juan Chuidian. Razon claimed he paid for the shares and owned them. The court of first instance ruled in favor of Razon. However, the appellate court reversed, finding that a valid transfer of stock requires the certificate to be properly endorsed, which did not occur. Therefore, the rightful owner of the 1,500 shares was Juan Chuidian.

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    Razon Vs Iac (207 Scra 510)

    Uploaded by

    Rivera Meriem Grace Mendez
    100 views1 page
    Vicente Chuidian filed a complaint against Enrique Razon for the delivery of stock certificate No. 003 representing 1,500 shares in E. Razon, Inc. (ERI) that were originally issued in the name of the late Juan Chuidian. Razon claimed he paid for the shares and owned them. The court of first instance ruled in favor of Razon. However, the appellate court reversed, finding that a valid transfer of stock requires the certificate to be properly endorsed, which did not occur. Therefore, the rightful owner of the 1,500 shares was Juan Chuidian.

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    Razon vs Iac (207 Scra 510)

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    Razon vs Iac (207 Scra 510)

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    Vicente Chuidian filed a complaint against Enrique Razon for the delivery of stock certificate No. 003 representing 1,500 shares in E. Razon, Inc. (ERI) that were originally issued in the name of the late Juan Chuidian. Razon claimed he paid for the shares and owned them. The court of first instance ruled in favor of Razon. However, the appellate court reversed, finding that a valid transfer of stock requires the certificate to be properly endorsed, which did not occur. Therefore, the rightful owner of the 1,500 shares was Juan Chuidian.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    100 views1 page

    Razon Vs Iac (207 Scra 510)

    Uploaded by

    Rivera Meriem Grace Mendez
    Vicente Chuidian filed a complaint against Enrique Razon for the delivery of stock certificate No. 003 representing 1,500 shares in E. Razon, Inc. (ERI) that were originally issued in the name of the late Juan Chuidian. Razon claimed he paid for the shares and owned them. The court of first instance ruled in favor of Razon. However, the appellate court reversed, finding that a valid transfer of stock requires the certificate to be properly endorsed, which did not occur. Therefore, the rightful owner of the 1,500 shares was Juan Chuidian.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Razon vs IAC (207 SCRA 510)

    Facts:
    Enrique Razon organized the E. Razon, Inc. (ERI) for the purpose of bidding for the
    arrastre services in South Harbor, Manila. Stock certificate No. 003 for 1,500 shares of
    stock was issued in the name of the late Juan T. Chuidian. Vicente B. Chuidian, as an
    administrator, filed a complaint against Razon for the delivery of certificate of stocks
    representing the shareholdings of the deceased Juan T. Chuidian in ERI. Vicente
    alleged that after organizing ERI, Razon distributed shares of stock previously placed in
    the names of the withdrawing nominal incorporators to some friends including Juan T.
    Chuidian. Stock Certificate No. 003, upon instruction of the late Chuidian, was
    personally delivered to the Corporate Secretary of ERI. Since then, Enrique was in
    possession of the said stock certificate even during the lifetime of the late Chuidian. By
    agreement of the parties, the stock certificate was delivered for deposit with the bank
    under the joint custody of the parties. Razon alleged later that he paid for all the
    subscription on the subject shares of stock and the understanding was that he was the
    owner of the same and was to have possession thereof until such time as he was paid
    therefor by the other nominal stockholders. The then Court of First Instance of Manila
    declared that Razon is the owner of the subject shares of stock. The then Intermediate
    Appellate Court, however, reversed the CFI's decision and ruled that Juan T. Chuidian
    is the owner of the shares of stock.
    Issue:
    Whether or not Juan T. Chuidian is the rightful owner of the stocks.
    Ruling:
    Yes. Chuidian is the rightful owner of the stocks. The law is clear that in order for a
    transfer of stock certificate to be effective, the certificate must be properly indorsed and
    that title to such certificate of stock is vested in the transferee by the delivery of the duly
    indorsed certificate of stock. (Section 35, Corporation Code) Since the certificate of
    stock covering the questioned 1,500 shares of stock registered in the name of the late
    Juan Chuidian was never indorsed to the petitioner, the inevitable conclusion is that the
    questioned shares of stock belong to Chuidian. The petitioner's asseveration that he did
    not require an indorsement of the certificate of stock in view of his intimate friendship
    with the late Juan Chuidian can not overcome the failure to follow the procedure
    required by law or the proper conduct of business even among friends. To reiterate,
    indorsement of the certificate of stock is a mandatory requirement of law for an effective
    transfer of a certificate of stock. Therefore, in the instant case, there is no dispute that
    the questioned 1,500 shares of stock of E. Razon, Inc. are in the name of the late Juan
    Chuidian in the books of the corporation.

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