Who is the winning bidder at a delinquency sale, and how are the resulting shares transferred?
The delinquent stock is sold at public auction to the bidder who offers to pay the full amount of the balance due, together with accrued interest, costs of advertisement, and expenses of sale, for the smallest number of shares or fraction of a share (SEC. 67, Revised Corporation Code of the Philippines). This mechanism minimizes the loss of shares for the delinquent stockholder. The shares so purchased are transferred to the purchaser in the books of the corporation, and a new certificate is issued in the purchaser’s favor. Any remaining shares from the subscription, if the winning bid only required a fraction, are credited back to the delinquent stockholder, who is entitled to a certificate covering those remaining shares.
02 November 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/.
