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    Cojuangco v. Sandiganbayan

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    Jay jogs
    This document summarizes a Supreme Court of the Philippines case regarding ownership of dividends from shares originally owned by Marcos cronies but declared by the court to belong to the Republic of the Philippines. The court ruled that the Republic was entitled to dividends from the shares from 1986 when they were sequestered until they were sold to Metro Pacific in 2007, at which point the Republic became the trustee of those dividends for Metro Pacific based on their sale agreement. The key issues were whether the Republic was still entitled to dividends after transferring the shares, and the legal principles that dividends belong to the record owner and a non-recorded transfer is only valid between the parties.

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    Cojuangco v. Sandiganbayan

    Uploaded by

    Jay jogs
    676 views2 pages
    This document summarizes a Supreme Court of the Philippines case regarding ownership of dividends from shares originally owned by Marcos cronies but declared by the court to belong to the Republic of the Philippines. The court ruled that the Republic was entitled to dividends from the shares from 1986 when they were sequestered until they were sold to Metro Pacific in 2007, at which point the Republic became the trustee of those dividends for Metro Pacific based on their sale agreement. The key issues were whether the Republic was still entitled to dividends after transferring the shares, and the legal principles that dividends belong to the record owner and a non-recorded transfer is only valid between the parties.

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    This document summarizes a Supreme Court of the Philippines case regarding ownership of dividends from shares originally owned by Marcos cronies but declared by the court to belong to the Republic of the Philippines. The court ruled that the Republic was entitled to dividends from the shares from 1986 when they were sequestered until they were sold to Metro Pacific in 2007, at which point the Republic became the trustee of those dividends for Metro Pacific based on their sale agreement. The key issues were whether the Republic was still entitled to dividends after transferring the shares, and the legal principles that dividends belong to the record owner and a non-recorded transfer is only valid between the parties.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    676 views2 pages

    Cojuangco v. Sandiganbayan

    Uploaded by

    Jay jogs
    This document summarizes a Supreme Court of the Philippines case regarding ownership of dividends from shares originally owned by Marcos cronies but declared by the court to belong to the Republic of the Philippines. The court ruled that the Republic was entitled to dividends from the shares from 1986 when they were sequestered until they were sold to Metro Pacific in 2007, at which point the Republic became the trustee of those dividends for Metro Pacific based on their sale agreement. The key issues were whether the Republic was still entitled to dividends after transferring the shares, and the legal principles that dividends belong to the record owner and a non-recorded transfer is only valid between the parties.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Cojuangco v.

    Sandiganbayan
    G.R. No. 183278, April 24, 2009
    Carpio-Morales, J.:

    DOCTRINE:

    Dividends are payable to the stockholders of record as of the date of the


    declaration of dividends or holders of record on a certain future date, as the case may
    be, unless the parties have agreed otherwise. And a transfer of shares which is not
    recorded in the books of the corporation is valid only as between the parties, hence, the
    transferor has the right to dividends as against the corporation without notice of transfer
    but it serves as trustee of the real owner of the dividends, subject to the contract
    between the transferor and transferee as to who is entitled to receive the dividends.

    FACTS:

    Respondent Republic of the Philippines filed before the Sandiganbayan a


    "Complaint for Reconveyance, Reversion, Accounting, Restitution and Damages
    praying for the recovery of alleged ill-gotten wealth from the late President Marcos and
    former First Lady Imelda Marcos and their cronies. The complaint, which was later
    amended to implead herein petitioners Ramon and Imelda Cojuangco, alleged that the
    Marcoses’ ill-gotten wealth included shares in the PLDT covered by shares of stock in
    the Philippine Telecommunications Investment Corporation (PTIC), registered in the
    name of Prime Holdings, Inc. (Prime Holdings).

    By Decision dated January 20, 2006, this Court, in G.R. No. 153459, ruled in
    favor of the Republic, declaring it to be the owner of 111,415 PTIC shares registered in
    the name of Prime Holdings. By Resolution dated December 14, 2006, the
    Sandiganbayan granted the Motion for the Issuance of a Writ of Execution with respect
    to the reconveyance of the shares, but denied the prayer for accounting of dividends.

    On Motion for Reconsideration of the Republic, the Sandiganbayan, by the first


    assailed Resolution dated November 7, 2007, directed PTIC to deliver the cash and
    stock dividends pertaining to the 111,415 shares, including compounded interests.
    Petitioners insist on a literal reading of the dispositive portion of this Court’s Decision in
    G.R. No. 153459 as excluding the dividends, interests, and earnings accruing to the
    shares of stock from being accounted for and remitted; that the Republic has yielded its
    right to the fruits of the shares when it sold them to Metro Pacific Assets Holdings, Inc.

    ISSUE:

    Whether or not the Republic, having transferred the shares to a third party, is
    entitled to the dividends, interests, and earnings thereof.

    RULING:
    Yes. Dividends are payable to the stockholders of record as of the date of the
    declaration of dividends or holders of record on a certain future date, as the case may
    be, unless the parties have agreed otherwise. And a transfer of shares which is not
    recorded in the books of the corporation is valid only as between the parties, hence, the
    transferor has the right to dividends as against the corporation without notice of transfer
    but it serves as trustee of the real owner of the dividends, subject to the contract
    between the transferor and transferee as to who is entitled to receive the dividends.

    It is thus clear that the Republic is entitled to the dividends accruing from the subject
    111,415 shares since 1986 when they were sequestered up to the time they were
    transferred to Metro Pacific via the Sale and Purchase Agreement of February 28, 2007;
    and that the Republic has since the latter date been serving as trustee of those
    dividends for the Metro Pacific up to the present, subject to the terms and conditions of
    the said agreement they entered into.

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