Issue Whether or not the petitioners may validly amend their articles of

Issue whether or not the petitioners may validly

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Issue: Whether or not the petitioners may validly amend their articles of partnership to extend their partnership with the effect of extending the tenure of their business. Ruling: No. The court ruled that since the right to organize a corporation or a partnership that could claim a juridical personality of its own and transact business as such, is not a matter of absolute right but a privilege which may be enjoyed only under such terms as the State may deem necessary to impose. Hence, pursuant to RA 1180, such right is deemed limited only until the expiration of the term of the partnership originally entered in to prior to the enactment of the aforementioned act. Furthermore, the court added that “To argue that because the original articles of partnership provided that the partners could extend the term of the partnership, the provisions of Republic Act 1180 cannot be adversely affect appellants herein, is to erroneously assume that the aforesaid provision constitute a property right of which the partners can not be deprived without due process or without their consent.”.The agreement to amend the original articles of partnership must still be deemed subject of laws existing at the time of the said amendment. In this case, RA1180 is already enacted thus making it contrary to the same to amend the articles of the partnership in order to extend the business of the same. Thus, the court ruled that the petitioners may not do the same.
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