Which specific financial corporations are prohibited from issuing no-par value shares?
The issuance of no-par value shares is strictly prohibited for several types of financial and public interest corporations (SEC. 6, Revised Corporation Code of the Philippines). Specifically, banks, trust, insurance, and preneed companies, along with public utilities and building and loan associations, cannot issue these shares. This restriction also extends to other corporations authorized to obtain or access funds directly from the public, regardless of whether they are publicly listed or not. This measure aims to protect the public funds handled by these sensitive institutions by ensuring their capital structure has a stated floor value.
02 November 2025
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