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Ago Realty & Development Corp. vs. Dr. Ago

AGO REALTY & DEVELOPMENT CORPORATION (ARDC), EMMANUEL F. AGO, AND CORAZON CASTAÑEDA-AGO, PETITIONERS, V. DR. ANGELITA F. AGO, TERESITA PALOMA-APIN, AND MARIBEL AMARO, RESPONDENTS. [G.R. No. 211203, October 16, 2019] DR. ANGELITA F. AGO, PETITIONER, V. AGO REALTY & DEVELOPMENT CORPORATION, EMMANUEL F. AGO, CORAZON C. AGO, EMMANUEL VICTOR C. AGO, AND ARTHUR EMMANUEL C. AGO, RESPONDENTS.

G.R. No. 210906 | 2019-10-16

D E C I S I O N
 
A. REYES, JR., J.:
 
Grounded on equity, the derivative suit has proven to be an effective tool for the protection of minority shareholders. Such actions have for their object the vindication of a corporate injury, even though they are not brought by the corporation, but by its stockholders. That said, derivative suits remain an exception. As a general rule, corporate litigation must be commenced by the corporation itself, with the imprimatur of the board of directors, which, pursuant to the law, wields the power to sue. Therefore, since the derivative suit is a remedy of last resort, it must be shown that the...