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 Code of the Philippines). They shall be punished with a fine ranging from Ten thousand pesos (P10,000.00) to Two hundred thousand pesos (P200,000.00) at the discretion of the court. Furthermore, the offender shall be permanently disqualified from being a director, trustee, or officer of any corporation. If the violation is injurious or detrimental to the public, the fine is increased to a range of Twenty thousand pesos (P20,000.00) to Four hundred thousand pesos (P400,000.00).
31 October 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/.
