What is the restriction on a foreign corporation’s ability to maintain or intervene in legal actions in the Philippines without a license? No foreign corporation transacting business in the Philippines without a license, nor its successors or assigns, shall be permitted to maintain or intervene in any action, suit, or proceeding in any court or […]
What are the grounds upon which the SEC may revoke or suspend the license of a foreign corporation? The SEC may revoke or suspend a foreign corporation’s license for several reasons, without prejudice to other special laws (SEC. 151, Revised Corporation Code of the Philippines). Grounds include failure to file its annual report or pay
What documents must be published when a foreign corporation files a petition for withdrawal of its license to transact business? Before the SEC issues a certificate of withdrawal for a foreign corporation’s license, all claims and taxes lawfully due in the Philippines must be paid or settled (SEC. 153, Revised Corporation Code of the Philippines).
What is the rule concerning the forfeiture of assets of a corporation involuntarily dissolved for illegal acts? If a corporation is ordered dissolved by final judgment for committing or aiding in securities violations, money laundering, or graft and corrupt practices, its assets, after payment of its liabilities, shall be forfeited in favor of the national
What restrictions apply to the SEC when publishing findings or information concerning a violation? The SEC is authorized to investigate and publish its findings, orders, opinions, advisories, or information concerning any alleged violation of the Code or its regulations (SEC. 154, Revised Corporation Code of the Philippines). However, this publication power is explicitly subject to
For how long can a dissolved corporation continue its corporate existence for liquidation purposes? Except for banks, which are covered by specific banking laws, every corporation whose charter expires or is annulled shall nevertheless remain as a body corporate for three (3) years after the effective date of dissolution (SEC. 139, Revised Corporation Code of
What is the purpose and maximum validity period for a Cease and Desist Order ex parte issued by the SEC? The SEC may issue a cease and desist order ex parte to enjoin an act or practice which is fraudulent or can be reasonably expected to cause significant, imminent, and irreparable danger or injury to
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
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What are the requirements and vote for a religious society to incorporate? A religious society may incorporate upon the written consent and/or by an affirmative vote at a meeting called for the purpose of at least two-thirds (2/3) of its membership (SEC. 114, Revised Corporation Code of the Philippines). This incorporation is intended for the
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