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Archive

December 25, 2014

What is the fraud-on-the-market theory in stock market transactions? This was the subject of a lengthy discourse in the case of Basic Incorporated vs. Levinson, 485 U.S. 224 (1988). Briefly, sometime in 1977 and 1978, Combustion Engineering, Inc. engaged in merger negotiations with some directors and officers of Basic Inc., a company listed on the New York Stock Exchange (NYSE). In the course... Read More

December 18, 2014

OF A RELATIVELY recent vintage, a seemingly innocuous proxy has become a subject of a judicial controversy. A proxy is a formal authority given by a stockholder empowering another to exercise his right to vote. It is a special form of agency, and a proxy holder is in the eye of the law an agent and as such a fiduciary. The Corporation Code of the Philippines recognizes voting by proxy in all... Read More

December 02, 2014

PREVALENT IS the practice by certain banks and credit card companies of issuing unsolicited credit cards to the public. One would often be surprised to receive from a bank or any credit card company a credit card, without even actually applying for one. The credit card would be complete with the intended recipient’s full name and address. Without the recipient ever using it, the next thing he... Read More