A Real Estate Investment Trust (“REIT”) is a stock corporation established principally for the purpose of owning income-generating real estate assets. For purposes of clarity, a REIT, although designated as a “trust”, does not have the same technical meaning as “trust” under existing laws and regulations but is used for the sole purpose of adopting the internationally accepted description of the company in accordance with global best practices.
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New Normal for Owners and Operators of Hotels and other Accommodation Establishments in the Philippines
When the lockdown is lifted and areas are no longer under any community quarantine, Accommodation Establishments will have to face the challenges of a New Normal. “New Normal” refers to the emerging behaviors, situations, and minimum public health standards that will be institutionalized in common or routine practices and remain even after the pandemic while the disease is not totally eradicated through means such as widespread immunization. In plain terms, New Normal means things will never be the same, and it is going to be extra challenging for owners or operators of Accommodation Establishments.
Continue readingWork Schedules: Options for Employers/Companies During or After the Community Quarantine Period
The coronavirus disease 2019 (Covid-19) pandemic poses a very serious threat to lives and businesses alike. The lockdown or community quarantine, particularly the enhanced community quarantine (ECQ) and modified enhanced community quarantine (MECQ), closed down many establishments. Here are some of the options for employers/establishments:
Continue reading5-Step Guide for Employers Operating During Community Quarantine
Existing community quarantine classifications are: Enhanced Community Quarantine (ECQ), Modified Enhanced Community Quarantine (MECQ), General Community Quarantine (GCQ), and Modified General Community Quarantine (MGCQ). The reclassification of many areas to MECQ and GCQ means more establishments are allowed to operate. Here is a quick guide for employers to determine if the company is allowed to operate and, in the affirmative, the requirements for such operation.
Continue readingRules on Interzonal and Intrazonal Travel: ECQ, MECQ, GCQ, MGCQ, No-Quarantine
Interzonal movement is the movement of people, goods and services across areas placed under different community quarantine classifications, while intrazonal movement is the movement of people, goods and services between localities under the same community quarantine classification, without transiting through an area placed under a different classification. These definitions, and the applicable rules, are contained in the IATF Revised Omnibus Guidelines on the Implementation of Community Quarantine in the Philippines dated 15 May 2020 (as amended by IATF Resolution No. 38 dated 22 May 2020; see quarantine classifications from 1 to 15 June 2020). The discussion on intrazonal travel is found in (B) below, the discussion on interzonal travel is found in (C), while the list of public transportation allowed is in (D).
Continue readingRevised Omnibus Guidelines on the Implementation of Community Quarantine in the Philippines
[Amendments (underscored) and deletions (in strikethrough) are incorporated in the full text below. Amendments were introduced under Resolution No. 38 dated 22 May 2020, Resolution No. 41 dated 29 May 2020, and Resolution No. 43 dated 3 June 2020. The original text was issued on 15 May 2020 by the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF), through its Resolution No. 37, series of 2020. See Updated Omnibus Guidelines and updated quarantine classifications).]
Post-Quarantine Procedure for Filing of GIS/AFS: Salient Points of SEC MC 18
The procedure for filing and receiving of corporate the reportorial requirements under the Revised Corporation Code — Audited Financial Statements (AFS) and General Information Sheet (GIS) — after the Enhanced Community Quarantine (ECQ) has been adopted by the Securities and Exchange Commission (SEC) through Memorandum Circular No. 18, series of 2020, dated 11 May 2020 (see also Extension of Deadlines). This covers all corporations, including branch offices, representative offices, regional headquarters and regional operating headquarters of foreign corporations. Here are the salient points of MC 18.
Continue readingAmended Guidelines and Procedures on the Use of Corporate and Partnership Names
On 21 June 2019, the Securities and Exchange Commission (SEC) issued SEC Memorandum Circular No. 13, series of 2019, providing for the “Amended Guidelines and Procedures on the Use of Corporate and Partnership Names”. The circular provides:
Continue readingSecured Creditors: Common Provisions in Insolvency Proceedings for Individual and Juridical Debtors
A “secured creditor” refers to s creditor with a secured claim. The Liquidation Order shall not affect the right of a secured creditor to enforce his lien in accordance with the applicable contract or law, unless he waives his right. The provisions cited/discussed below are from Republic Act No. 10142, also known as the “Financial Rehabilitation and Insolvency Act (FRIA) of 2010,“ as fleshed out in the FLSP Rules. These common provisions apply to liquidation of juridical debtors, and voluntary/involuntary liquidation of individual debtors.
Continue readingLiquidation of Insolvent Juridical Debtors under the Financial Rehabilitation and Insolvency Act (FRIA) of 2010
Insolvency, or the state of being insolvent, is the financial condition of a debtor that is generally unable to pay its or his liabilities as they fall due in the ordinary course of business or has liabilities that are greater than its or his assets. Insolvency proceedings may cover an individual debtor or a juridical debtor. This article covers only juridical debtors (there are separate rules for voluntary and involuntary liquidation of individual debtors).
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