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[2/2] CHEMPHIL Export & Import Corp. vs. CA, et al.

[2/2] CHEMPHIL EXPORT & IMPORT CORPORATION (CEIC), petitioner, vs. THE HONORABLE COURT OF APPEALS, JAIME Y. GONZALES, as Assignee of the Bank of the Philippine Islands (BPI), RIZAL COMMERCIAL BANKING CORPORATION (RCBC), LAND BANK OF THE PHILIPPINES (LBP), PHILIPPINE COMMERCIAL & INTERNATIONAL BANK (PCIB) and THE PHILIPPINE INVESTMENT SYSTEM ORGANIZATION (PISO), respondents.

G.R. Nos. 112438-39 | 1995-12-12

The requirement that the transfer shall be recorded in the books of the corporation to be valId as against third persons has reference only to absolute transfers or absolute conveyance of the ownership or title to a share.

Consequently, the entry or notation on the books of the corporation of pledges and chattel mortgages on shares is not necessary to their valIdity (although it is advisable to do so) since they do not involve absolute alienation of ownership of stock (Monserrat vs. Ceron, 58 Phil. 469 [1933]; Chua Guan vs. Samahang Magsasaka, Inc., 62 Phil. 472 [1935].) To affect third persons, it is enough that the date and description...