" 9. ID.; ID.;ID.; PRIVATE RESPONDENTS HAVING THE LEGAL RIGHT TO FILE THE INSTANT CASE, COURT FINDS THAT THE COMPLAINT STATES A CAUSE OF ACTION. — There is no allegation in the complaint that would show that a demand on the board of directors of IISMI was in fact made. But even if the Jacintos and JSI omitted to make the same, they can still file the instant case as a derivative suit. They have alleged that "at this time, IISMI is without a duly or legally constituted board of directors and no election of officers has been held." It would be futile for them to make a demand on the board of directors whose very constitution is being questioned. Private respondents, having the legal right to file the instant case, we find that the complaint states a legal cause of action."
Source -
[G.R. No. 96921. January 29, 1993.]
DEVELOPMENT BANK OF THE PHILIPPINES, NATIONAL DEVELOPMENT COMPANY and NATIONAL STEEL CORPORATION, Petitioners, v. JUDGE AMIR PUNDOGAR, in his capacity as Presiding Judge of the Regional Trial Court of Iligan City, 12th Judicial Region, Branch III, FERNANDO JACINTO, JACINTO STEEL, INC., and ILIGAN INTEGRATED STEEL MILLS, INC., Respondents.
Office of the Government Corporate Counsel for petitioners.
Link - chanrobles.com.
https://www.chanrobles.com/cralaw/1993januarydecisions.php?id=68
