BUSINESS LAWS AND REGULATIONS; Instructions: Your answer should demonstrate your ability to analyze the facts, apply the pertinent laws and jurisprudence, and arrive at a sound or logical conclusion. Always support your answer with the pertinent laws, rules, and/or jurisprudence. A MERE "YES" OR "NO" ANSWER WITHOUT ANY CORRESPONDING EXPLANATION OR DISCUSSION WILL NOT BE GIVEN FULL CREDIT. THUS, ALWAYS BRIEFLY BUT FULLY EXPLAIN YOUR ANSWERS ALTHOUGH THE QUESTION DOES NOT EXPRESSLY ASK FOR AN EXPLANATION.

While the incorporation papers of XYZ, Inc. were pending before the SEC for approval, A, the designated Treasurer in the Articles of Incorporation held real estate property worth P20,000 which E turned over for shares he (E) purchased in XYZ Inc. Before the certificate of incorporation for XYZ, Inc could be issued, H, who claims to be the owner of said real estate property, filed an action against XYZ, Inc. for recovery of possession of the same. Will H suit prosper? Why?