REPUBLIC ACT No. 11232 . An Act Providing for the Revised Corporation Code of the Philippines

CASE STUDY. Cite the applicable provision in your explanation.

Atlantis Realty Corporation [ARC], a local rm engaged in real estate development, plans to sell one of its priIne assetsa threehectare land valued at about FIDOmillion. For this purpose, the board of directors of ARC unanimously passed a resolution approving the sale of the property for P75million to Shangrila Real Estate Ventures [SREV] a rival realty rm. The resolution also called for a special stockholders' meeting at which the proposed sale would be up for ratication. Atty. Edric, a stockholder who owns only one (1) share in ARC, wants to stop the sale. He then commences a derivative suit for and in behalf of the corporation, to enjoin the board of directors and the stockholders from approving the sale. a. Can Atty. Edric, who owns only one share in the company, initiate a derivative suit? Why or why not? b. If such a suit is commenced, would it constitute an intra corporate dispute? If so, why and where would such a suit be led? If not, why not