G.R. No. L-23145, Nov. 29, 1968
- PRIVATE INTERNATIONAL LAW: Situs of Shares of Stock: domicile of the corporation
- SUCCESSION: Ancillary Administration: The ancillary administration is proper, whenever a person dies, leaving in a country other than that of his last domicile, property to be administered in the nature of assets of the deceased liable for his individual debts or to be distributed among his heirs.
- SUCCESSION: Probate: Probate court has authority to issue the order enforcing the ancillary administrator’s right to the stock certificates when the actual situs of the shares of stocks is in the Philippines.
FACTS:
Idonah Slade Perkins, an American citizen who died in New York City, left among others, two stock certificates issued by Benguet Consolidated, a corporation domiciled in the Philippines. As ancillary administrator of Perkins’ estate in the Philippines, Tayag now wants to take possession of these stock certificates but County Trust Company of New York, the domiciliary administrator, refused to part with them. Thus, the probate court of the Philippines was forced to issue an order declaring the stock certificates as lost and ordering Benguet Consolidated to issue new stock certificates representing Perkins’ shares. Benguet Consolidated appealed the order, arguing that the stock certificates are not lost as they are in existence and currently in the possession of County Trust Company of New York.
ISSUE: Whether or not the order of the lower court is proper
HELD:
The appeal lacks merit.
Tayag, as ancillary administrator, has the power to gain control and possession of all assets of the decedent within the jurisdiction of the Philippines
It is to be noted that the scope of the power of the ancillary administrator was, in an earlier case, set forth by Justice Malcolm. Thus: "It is often necessary to have more than one administration of an estate. When a person dies intestate owning property in the country of his domicile as well as in a foreign country, administration is had in both countries. That which is granted in the jurisdiction of decedent's last domicile is termed the principal administration, while any other administration is termed the ancillary administration. The reason for the latter is because a grant of administration does not ex proprio vigore have any effect beyond the limits of the country in which it is granted. Hence, an administrator appointed in a foreign state has no authority in the [Philippines]. The ancillary administration is proper, whenever a person dies, leaving in a country other than that of his last domicile, property to be administered in the nature of assets of the deceased liable for his individual debts or to be distributed among his heirs."
Probate court has authority to issue the order enforcing the ancillary administrator’s right to the stock certificates when the actual situs of the shares of stocks is in the Philippines.
It would follow then that the authority of the probate court to require that ancillary administrator's right to "the stock certificates covering the 33,002 shares ... standing in her name in the books of [appellant] Benguet Consolidated, Inc...." be respected is equally beyond question. For appellant is a Philippine corporation owing full allegiance and subject to the unrestricted jurisdiction of local courts. Its shares of stock cannot therefore be considered in any wise as immune from lawful court orders.
Our holding in Wells Fargo Bank and Union v. Collector of Internal Revenue finds application. "In the instant case, the actual situs of the shares of stock is in the Philippines, the corporation being domiciled [here]." To the force of the above undeniable proposition, not even appellant is insensible. It does not dispute it. Nor could it successfully do so even if it were so minded.
