How is the penalty in the Revised Corporation Code imposed if the offender of a violation is a corporation? If the offender of a violation is a corporation, the penalty may be imposed upon the corporation itself and/or upon its responsible personnel (SEC. 171, Revised Corporation Code of the Philippines). At the discretion of the […]
How are aiders and abettors penalized for violating the Revised Corporation Code? Anyone who shall aid, abet, counsel, command, induce, or cause any violation of this Code, or any rule, regulation, or order of the SEC, shall face a penalty (SEC. 172, Revised Corporation Code of the Philippines). The punishment imposed upon these secondary actors
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How is the term “outstanding capital stock” defined under the Revised Corporation Code? The term “outstanding capital stock” is defined as the total shares of stock issued under binding subscription contracts to subscribers or stockholders (SEC. 173, Revised Corporation Code of the Philippines). This total includes shares whether they are fully paid or only partially
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What alternate name designations are permitted for the governing boards of nonstock or special corporations? Notwithstanding specific provisions of the Code that reference “board of directors” or “board of trustees,” nonstock or special corporations are permitted to use alternate names for their governing boards (SEC. 174, Revised Corporation Code of the Philippines). These corporations may,
What is the purpose of the fund created by the SEC’s collection of fees, fines, and other charges? The SEC is authorized to collect, retain, and use fees, fines, and other charges pursuant to the Code for the purpose of a more effective implementation of this Code (SEC. 175, Revised Corporation Code of the Philippines).
What is the criminal penalty for the unauthorized use of a corporate name? The unauthorized use of a corporate name is specifically penalized under the Code (SEC. 159, Revised Corporation Code of the Philippines). The violator shall be punished with a fine ranging from Ten thousand pesos (P10,000.00) to Two hundred thousand pesos (P200,000.00). This
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What role does the NEDA play in monitoring stock ownership in corporations? The National Economic and Development Authority (NEDA) is tasked with determining, from time to time, if the corporate vehicle has been used by any corporation, business, or industry to frustrate the provisions of this Code or applicable laws (SEC. 176, Revised Corporation Code
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What is the penalty for a director, trustee, or officer who willfully holds office despite knowing a ground for disqualification exists? When a director, trustee, or officer willfully holds office, or willfully conceals such disqualification, despite knowing the existence of a ground for disqualification under Section 26, they face severe penalties (SEC. 160, Revised Corporation
What two primary reportorial requirements must every corporation, domestic or foreign, submit annually to the SEC? Every corporation, whether domestic or foreign, doing business in the Philippines must submit two primary reportorial requirements annually to the SEC (SEC. 177, Revised Corporation Code of the Philippines). These reports include the annual financial statements audited by an
What are the penalties for the unjustified failure or refusal to allow the inspection or reproduction of corporate records? The unjustified failure or refusal by the corporation, or those responsible for maintaining corporate records, to comply with the rules on inspection and reproduction shall be punished with a fine ranging from Ten thousand pesos (P10,000.00)
