What is the rule concerning the forfeiture of assets of a corporation involuntarily dissolved for illegal acts?
If a corporation is ordered dissolved by final judgment for committing or aiding in securities violations, money laundering, or graft and corrupt practices, its assets, after payment of its liabilities, shall be forfeited in favor of the national government (SEC. 138, Revised Corporation Code of the Philippines). This forfeiture is initiated upon the SEC’s petition to the appropriate court. This severe penalty is explicitly stated to be without prejudice to the rights of innocent stockholders and employees for services rendered, ensuring that passive investors and workers are protected. The forfeiture is also separate from any other penalty or sanction applicable under this Code or other laws.
02 November 2025
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