Individual debtors under financial distress may be covered by any of the following options: (a) Suspension of payments; (b) Voluntary liquidation; and (c) Involuntary liquidation. This discussion covers only suspension of payments under Republic Act No. 10142, also known as the “Financial Rehabilitation and Insolvency Act (FRIA) of 2010“, as fleshed out in the FLSP Rules. Moreover, the discussion below on Suspension of Payments applies only to individual debtors.
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Guidelines on Teleconferencing, Video Conferencing and Other Remote or Electronic Means of Communications in Corporate Meetings: Summary
Regular and special meetings of stockholders or directors can be done by means of electronic communications. In Memorandum Circular No. 6, series of 2020, the Securities and Exchange Commission (SEC) provided the guidelines on the attendance and participation of directors, trustees, stockholders, members and other persons of corporations in regular and special meetings through teleconferencing, video conferencing and other remote or electronic means of communication. These guidelines apply to all corporations registered with the SEC.
Continue readingPowers, Functions, and Jurisdiction of the Securities and Exchange Commission (SEC)
The Securities and Exchange Commission (SEC), the government agency which exercises supervision and jurisdiction over all corporations and persons acting on their behalf, was reorganized in 1976 through Presidential Decree No. 902-A. Section 5 of PD 902-A reads:
Continue readingThe Liquidation Order: Common Provisions in Insolvency Proceedings for Individual and Juridical Debtors
Insolvency proceedings may refer to voluntary or involuntary proceedings for individual debtors (see Voluntary liquidation and Involuntary liquidation) or juridical entities (see Liquidation proceedings). The provisions on Liquidation Order are common in all these proceedings, as provided under Republic Act No. 10142, also known as the “Financial Rehabilitation and Insolvency Act (FRIA) of 2010“, and fleshed out in the FLSP Rules. For purposes of these common provisions, the term “debtor” includes individual debtors and other juridical debtors.
Continue readingTeleconferencing, Video Conferencing and Other Remote or Electronic Means of Communications in Corporate Meetings (SEC Memorandum Circular No. 6)
[The guidelines on the attendance and participation of directors, trustees, stockholders, members and other persons of corporations in regular and special meetings through teleconferencing, video conferencing and other remote or electronic means of communication, are contained in Memorandum Circular No. 6, series of 2020, of the Securities and Exchange Commission (SEC). See the Summary. The full text of MC 6 is reproduced below.]
Continue readingApplication for Registration of Branch Office-Foreign Corporations/Partnerships in the Philippines
A foreign corporation, whether stock or nonstock, and a foreign partnership who intend to register a Branch Office or Representative Office in the Philippines must comply with/file the specific requirements, enumerated and discussed below, with the Securities and Exchange Commission (SEC). The application requirements are discussed below.
Continue readingApplication for Registration of RHQ/ROHQ-Foreign Corporations in the Philippines
A foreign corporation who intends to register a Regional/Area Headquarters (RHQ) or Regional/Area Operating Headquarters (ROHQ) in the Philippines must comply with/file the specific requirements, enumerated and discussed below, with the Securities and Exchange Commission (SEC). The requirements are discussed below.
Continue readingForeign Corporations: Grounds for Revocation of License to Operate in the Philippines
A foreign corporation which is licensed to operate or do business in the Philippines may lose its license based on a number of grounds provided in the Revised Corporation Code. The Securities and Exchange Commission (SEC) may revoke the license upon any of the following grounds:
Continue readingIntroduction to the Revised Corporation Code
The existing law governing corporations in the Philippines is Republic Act No. 11232, also known as the “Revised Corporation Code“. R.A. 11232 was signed by President Rodrigo R. Duterte on 20 February 2019. This is an introduction to the Revised Corporation Code.
Continue readingDetermination of Claims in Court-Supervised Financial Rehabilitation in the Philippines
A claim refers to all claims or demands of whatever nature or character against the debtor or its property, whether for money or otherwise, liquidated or unliquidated, fixed or contingent, matured or unmatured, disputed or undisputed, including, but not limited to: (1) all claims of the government, whether national or local, including taxes, tariffs and customs duties; and (2) claims against directors and officers of the debtor arising from acts done in the discharge of their functions falling within the scope of their authority.
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