What happens to assets distributable to an unknown or unfound creditor, stockholder, or member during liquidation? Except for assets distributed under specific nonstock corporation rules (Sections 93 and 94), upon the winding up of corporate affairs, any asset distributable to a creditor, stockholder, or member who is unknown or cannot be found shall be escheated […]
What is the fine structure imposed for contempt of the SEC? Any person who fails or refuses to comply with a lawful order, decision, or subpoena issued by the SEC, without justifiable cause, shall be held in contempt after due notice and hearing (SEC. 157, Revised Corporation Code of the Philippines). The resulting fine imposed
What is the fine structure imposed for contempt of the SEC? Read More »
What conditions must a foreign corporation meet regarding its home country’s laws to be eligible to transact business in the Philippines? A foreign corporation is defined as one formed, organized, or existing under laws other than those of the Philippines (SEC. 140, Revised Corporation Code of the Philippines). Crucially, its laws must allow Filipino citizens
What are the maximum and minimum administrative fines the SEC may impose for violating the Code? If the SEC finds that any provision of the Code, rules, or orders has been violated, it may impose several administrative sanctions (SEC. 158, Revised Corporation Code of the Philippines). The primary sanction is the imposition of a fine
What key document must a foreign corporation submit with its application for a license, and what is required if it is not in English? A foreign corporation applying for a license to transact business in the Philippines must submit to the SEC a copy of its articles of incorporation and bylaws, certified in accordance with
What critical information regarding legal service must a foreign corporation disclose in its license application? The application for a license must specifically set forth the name and address of its resident agent authorized to accept summons and process in all legal proceedings (SEC. 142, Revised Corporation Code of the Philippines). This designation is mandatory, ensuring
What documentation is required to satisfy the SEC regarding a foreign corporation’s financial condition upon application for a license? The application for a license must be accompanied by a statement under oath of the president or any other authorized person of the corporation (SEC. 142, Revised Corporation Code of the Philippines). This statement must show,
What is the minimum value required for the securities deposit maintained by a licensed foreign corporation? Within sixty (60) days after the issuance of its license, the foreign corporation must deposit with the SEC securities for the benefit of present and future creditors in the Philippines (SEC. 143, Revised Corporation Code of the Philippines). These
When must a licensed foreign corporation deposit additional securities with the SEC? The SEC shall require the licensee to deposit additional securities if the licensee’s gross income for a fiscal year exceeds Ten million pesos (P10,000,000.00) (SEC. 143, Revised Corporation Code of the Philippines). The additional deposit required must be equivalent in actual market value
When must a licensed foreign corporation deposit additional securities with the SEC? Read More »
Who is qualified to be appointed as a resident agent for a foreign corporation? A resident agent may be either an individual residing in the Philippines or a domestic corporation lawfully transacting business in the Philippines (SEC. 144, Revised Corporation Code of the Philippines). An individual designated as a resident agent must meet personal standards,
Who is qualified to be appointed as a resident agent for a foreign corporation? Read More »
