Name two specific grounds upon which the SEC may disapprove the Articles of Incorporation.
One ground for disapproval is if the Articles of Incorporation or any amendment thereto is not substantially in accordance with the form prescribed in the Code (SEC. 16, Revised Corporation Code of the Philippines). Another critical ground is if the purpose or purposes stated in the articles are patently unconstitutional, illegal, immoral or contrary to government rules and regulations. The SEC must first grant the incorporators a reasonable time from receipt of the disapproval notice to modify any objectionable portions before proceeding with final rejection. Additionally, the SEC will disapprove the articles if the required percentage of Filipino ownership has not been met.
02 November 2025
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Nicolas and De Vega Law Offices is a full-service law firm in the Philippines. You may visit us at the 16th Flr., Suite 1607 AIC Burgundy Empire Tower, ADB Ave., Ortigas Center, 1605 Pasig City, Metro Manila, Philippines. You may also call us at +632 84706126, +632 84706130, +632 84016392 or e-mail us at [email protected]. Visit our website https://ndvlaw.com/.
