What are the four grounds upon which the SEC may dissolve a corporation involuntarily?
A corporation may be dissolved involuntarily by the SEC motu proprio or upon the filing of a verified complaint by any interested party (SEC. 138, Revised Corporation Code of the Philippines). Grounds for dissolution include the non-use of the corporate charter or the continuous inoperation of a corporation, as detailed under Section 21 of the Code. Another ground is the receipt of a lawful court order dissolving the corporation. Furthermore, dissolution may be ordered upon a final judgment finding that the corporation was created for the purpose of committing, concealing, or aiding in the SEC of securities violations, smuggling, tax evasion, money laundering, or graft and corrupt practices, provided the stockholders knew of or tolerated such acts.
02 November 2025
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