What are the initial two steps required for the distribution of assets during the dissolution of a nonstock corporation?
The distribution process begins by mandating that all liabilities and obligations of the corporation shall be paid, satisfied, and discharged, or adequate provision shall be made for these obligations (SEC. 93, Revised Corporation Code of the Philippines). Following the settlement of general liabilities, the corporation must address assets held upon a condition requiring return, transfer, or conveyance. If that condition occurs due to the dissolution, those assets shall be returned, transferred, or conveyed in accordance with the specific requirements attached to the original donation or grant. This prioritization ensures external debts are settled first, followed by conditional assets.
02 November 2025
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