What limitations are imposed on the exclusive voting rights granted to Founders’ Shares?
The exclusive right granted to Founders’ Shares, allowing holders to vote and be voted for in the election of directors, is subject to a strict time limitation (SEC. 7, Revised Corporation Code of the Philippines). This exclusive right cannot exceed a period of five (5) years from the date of incorporation. Furthermore, the exercise of this exclusive right is explicitly disallowed if it would violate key Philippine statutes, such as the Anti-Dummy Law or the Foreign Investments Act of 1991, ensuring compliance with nationality requirements. Founders’ shares grant special rights and privileges not enjoyed by owners of other stocks, but these special powers are temporary and regulated.
31 October 2025
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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/.
