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 in favor of the national government (SEC. 139, Revised Corporation Code of the Philippines). This prevents assets from remaining in limbo indefinitely. Furthermore, the Code strictly prohibits any corporation from distributing any of its assets or property, except by valid decrease of capital stock or as otherwise allowed by the Code, unless upon lawful dissolution and after payment of all its debts and liabilities. This reiterates the importance of settling debts before any capital return.
02 November 2025
About Nicolas and De Vega Law Offices
Nicolas and De Vega Law Offices is a full-service law firm in the Philippines. You may visit us at the 16th Flr., Suite 1607 AIC Burgundy Empire Tower, ADB Ave., Ortigas Center, 1605 Pasig City, Metro Manila, Philippines. You may also call us at +632 84706126, +632 84706130, +632 84016392 or e-mail us at [email protected]. Visit our website https://ndvlaw.com/.
