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On August 26, 2010, Diaz Corporation filed a complaint for collection against Mr. Escamilla. While the case was pending, Diaz Corporation amended its Articles of Incorporation to shorten its terms of existence up to December 31, 2010. The Securities and Exchange Commission approved the amendment. The trial court however, was not notified of the thereof, so that the proceedings continued until November 5, 2014, when Mr. Escamilla, learning of the dissolution, questioned the personality of Diaz Corporation to continue prosecuting the case. Mr. Escamilla alleged that since Diaz Corporation had already been dissolved, but had not taken steps to wind up its affairs and transfer its assets to a trustee or assignee within the 3 year period under Revised Corporation Code, it had ceased to exist for all purposes. Decide the case with reasons.
Directors have a primary duty to manage the company and not to answer to individual shareholders.'
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