With the suspension of the Usury Law and the removal of interest ceilings, the parties are generally free to stipulate the interest rates to be imposed on monetary obligations. As a rule, the interest rate agreed by the creditor and the debtor is binding upon them. This rule, however, is not absolute.
Continue readingThere are formal learning institutions dealing in all aspects of business. There are Big Businesses dominating our economy. Of course, there are Pinoys who are very lucky to have graduated from these prestigious institutions and work for or with the Big Businesses. However, outside of formal learning institutions, budding Pinoy entrepreneurs refer to materials from various sources in order to gain knowledge and insights on how business clicks. Continue reading
The concept of networking, whether in the virtual or real world, is basically the same. The purposes may be different (e.g., professional, personal, business, dating), but the general concept is the same – to link people/entities for optimum utilization of resources. In the real world (and in this side of the world), we have been exposed to the more common kind of business networking: the multi-level marketing (MLM).
Continue readingCorporations are no longer allowed to use ‘Metro Manila’ as a principal place of business in the Articles of Incorporation (AOI), as provided under Memorandum Circular No. 3 (26 January 2006) of the Securities and Exchange Commission (SEC).
Prior to this Circular, corporations located within Metro Manila usually indicate ‘Metro Manila’, without specifying the city or municipality where they are actually located, as their corporate address or principal place of business. This is intended to obviate the need of amending the AOI if the corporation subsequently transfers its place of business.
From a litigation point of view, the more obvious significance is the determination of venue in filing of cases. Like natural persons or individuals, a corporation also has a residence, which is the address specified in its AOI duly filed with the SEC. A case may be filed, for or against the corporation, at a court where the corporation ‘resides’.
[Update: See Contents of Articles of Incorporation under the Revised Corporation Code]
[The General Information Sheet (GIS) is one of the documents required to be submitted to the SEC on a yearly basis. As prescribed in SEC Circular No. 5 (2006), starting 1 April 2006, only filings that conform to the format of the official GIS form shall be accepted by SEC. Any deviation shall be considered as non-compliant with existing rules and regulation and, hence, will not be accepted. Update: See GIS under the Revised Corporation Code.]
Continue readingEverybody knows about “5-6” and similar lending schemes. Everybody also knows that, ironically, those who are in financial trouble are forced to accept ridiculously high interest rates – which, in many (almost all?) instances, leads to more trouble (financial or otherwise).
Continue readingOne of the more confusing matters, for employees and HR people alike, is the computation of holiday pay, complicated by the fact that there are different “kinds” of holidays. This is cleared by Memorandum Circular No. 1 of the Department of Labor and Employment (DOLE), the full text of which is reproduced and discussed below (added: see computation for double holidays). Continue reading
Can management, pursuant to a stipulation in a Collective Bargaining Agreement (CBA), retire an employee who has not yet reached the minimum compulsory retirement age under the Labor Code?
Continue readingCorporate rehabilitation, which is similar to Chapter 11 reorganization in the United States of America, is distinct and separate from insolvency. Rehabilitation is intended to enable a distressed corporation to gain a new lease on life, so to speak, and to continue its business as a going concern. On the other hand, insolvency is intended to close and liquidate an insolvent corporation (please note that insolvency is also available to individuals or natural persons, while rehabilitation is available only to corporations, partnerships and associations). [Update: Refer to Court-Supervised Rehabilitation Proceedings under the Financial Rehabilitation and Insolvency Act (FRIA) of 2010; Supreme Court A.M. No. 12-12-11-SC (Financial Rehabilitation Rules of Procedure) and A.M. No. 15-04-06-SC (Financial Liquidation and Suspension of Payments Rules of Procedure for Insolvent Debtors)
Continue readingSome people still have confidence, which confidence may be regarded as misplaced by others, in the deterrent effect of Batas Pambansa Blg. 22, also known as the “Bouncing Checks Law” (full text here). Here are some things a layman should know:
Continue reading