Under Article 96 of the Labor Code, managerial employees are expressly excluded from receiving a share of collected service charges.
Who is explicitly excluded from receiving a share of the collected service charges? Read More »
Article 95 of the Labor Code excludes managerial employees who direct work and have hiring authority from Service Incentive Leave.
Do managerial employees qualify for Service Incentive Leave? Read More »
Who is authorized to form a corporation sole, and for what purpose? A corporation sole may be formed by the chief archbishop, bishop, priest, minister, rabbi, or other presiding elder of any religious denomination, sect, or church (SEC. 108, Revised Corporation Code of the Philippines). The specific purpose of forming this unique corporate entity is
Who is authorized to form a corporation sole, and for what purpose? Read More »
What is the purpose of designating a nominee and an alternate nominee in a One Person Corporation? The single stockholder must designate both a nominee and an alternate nominee, and their purpose is to ensure the continuity of management (SEC. 124, Revised Corporation Code of the Philippines). These individuals shall, in the event of the
What agreement provision relating to corporate affairs is permitted among stockholders of a close corporation that would normally be restricted? A written agreement among some or all of the stockholders in a close corporation is explicitly permitted to relate to the conduct of the business and affairs of the corporation (SEC. 99, Revised Corporation Code
What are the mandatory composition and specific restrictions placed upon the powers of an Executive Committee? The board may create an executive committee if authorized by the bylaws, and this committee must be composed of at least three (3) directors (SEC. 34, Revised Corporation Code of the Philippines). The committee may act on specific matters
When is stockholder approval not necessary for a corporation to invest its funds in another business? Generally, a private corporation must obtain approval from a majority of the board and ratification by two-thirds (2/3) of the outstanding capital stock before investing funds in another business or for any purpose other than its primary purpose (SEC.
What are the fundamental roles and responsibilities of the board of directors or trustees? The board of directors or trustees is vested with the power to exercise the corporate powers, which are the fundamental legal capabilities of the entity (SEC. 22, Revised Corporation Code of the Philippines). The board is also responsible for conducting all
