Majority Stockholders of Ruby Industrial Corporation vs. Miguel Lim

MAJORITY STOCKHOLDERS OF RUBY INDUSTRIAL CORPORATION, PETITIONERS, VS. MIGUEL LIM, IN HIS PERSONAL CAPACITY AS STOCKHOLDER OF RUBY INDUSTRIAL CORPORATION AND REPRESENTING THE MINORITY STOCKHOLDERS OF RUBY INDUSTRIAL CORPORATION AND THE MANAGEMENT COMMITTEE OF RUBY INDUSTRIAL CORPORATION, RESPONDENTS. CHINA BANKING CORPORATION, PETITIONER, VS. MIGUEL LIM, IN HIS PERSONAL CAPACITY AS A STOCKHOLDER OF RUBY INDUSTRIAL CORPORATION AND REPRESENTING THE MINORITY STOCKHOLDERS OF RUBY INDUSTRIAL CORPORATION, RESPONDENTS.

G.R. No. 165887 and G.R. No. 165929 | 2011-06-06

The stockholder must be given a reasonable time within which to exercise their preemptive rights. Upon the expiration of said period, any stockholder who has not exercised such right will be deemed to have waived it.

THIRD DIVISION

D E C I S I O N

VILLARAMA, JR., J.:

This case is brought to us on appeal for the fourth time, involving the same parties and interests litigating on issues arising from rehabilitation proceedings initiated by Ruby Industrial Corporation way back in 1983.

Following is the factual backdrop of the present controversy, as culled from the records and facts set forth in the ponencia of Chief Justice Reynato S. Puno in Ruby Industrial Corporation v. Court of Appeals.¹

The Antecedents

Ruby Industrial Corporation (RUBY) is a domestic corporation engaged in glass manufacturing. Reeling from severe liquidity problems...