Duty of loyalty by the corporate directors

A person cannot serve two masters without detriment to one of them. It is from this basic human frailty that the doctrine of corporate opportunity was recognized and laws were put in place to deter corporate officers from using their position of trust and confidence to further private interests. (TOPROS, Inc. v. Chang, Jr., G.R No. 200070-71, December 7, 2021)

The Supreme Court Decides:  Ownership of property is transferred by agreement and delivery, not by registration; a later buyer in bad faith cannot override the rights of the original buyer.

The sale of the subject property between Zenaida and the spouses Basas was valid and binding despite the failure to immediately register the sale in the Register of Deeds. Registration is not a recognized mode of acquiring ownership but binds the whole world, especially innocent purchasers for value.

Why choose ALBURO LAW?

Alburo Alburo & Associates Law Offices:

• Have labor law and business law as our main fields of practice. For almost a decade now, we have been helping businesses improve their productivity and profitability by helping them comply with relevant laws, rules, and regulations.

• Observe high standards of excellence.

• Always consider innovative approaches to effectively address the legal concerns of our clients, covering a wide range of industries such as food, manufacturing, chemicals, real estate, retail and wholesale trade, and services in fields such as information technology, human resources, security, training, process outsourcing and other manpower services, among many others.

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