Jurisdiction and Nature of Proceedings in Financial Liquidation and Suspension of Payments

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Financial liquidation and suspension of payment proceedings are in rem, which means that it is binding on everyone and not just the parties who participated in the case. Financial liquidation covers both individual and juridical persons, as provided under the Financial Liquidation and Suspension of Payments Rules of Procedure for Insolvent Debtors (2105), also known as the “FLSP Rules”. The FLSP Rules, issued by the Supreme Court pursuant to Section 6 of Republic Act No. 10142, also covers suspension of payments for insolvent individual debtors.

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Cybercrimes and Warrantless Arrests: The Case of Ronnel Mas

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A cybercrime may refer to an offense defined and penalized under the Cybercrime Prevention Act of 2012 (Republic Act No 10175), or crimes/offenses defined and penalized in other laws committed through an information and communications system (ICT). A warrantless arrest, on the other hand, may be valid under certain circumstances (see Warrant of arrest in cybercrimes). We see the combination of both topics discussed in this Forum, cybercrimes and valid warrantless arrests, in the recent resolution of the Department of Justice (DOJ) relating to the warrantless arrest of a teacher, Ronnel Mas.

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Suspension of Court Hearings and Extension of Deadlines for MECQ and GCQ Provinces/Areas

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The IATF has released the list of areas or provinces under General Community Quarantine (GCQ) and Modified Enhanced Community Quarantine (MECQ) [Update: quarantine classifications from 1 to 15 June 2020]. Given this development, the Supreme Court released the guidelines for provinces/areas under GCQ (Administrative Circular No. 40-2020 for 16-31 May 2020, citing Administrative Circular No. 36-2020 for 1-15 May 2020) and MECQ (Administrative Circular No. 39-2020 for 16-31 May 2020). This post is a consolidation/summary of the two circulars, updated as of 15 May 2020. 

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Guidelines for Courts in Areas Placed under GCQ from 16 to 31 May 2020 (Administrative Circular No. 40-2020)

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[On 15 May 2020, the Supreme Court issued Administrative Circular No. 40-2020, providing for guidelines for courts in areas placed under General Community Quarantine (GCQ) from 16 to 31 May 2020 (court hearings allowed; deadlines extended for 30 days counted from 1 June 2020). Areas under Modified Enhanced Community Quarantine (MECQ) are covered by a separate issuance, Administrative Circular No. 39-2020. The full text of Administrative Circular No. 40-2020 is reproduced below for easy reference.]

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Suspension of Court Hearings and Extension of Deadlines during MECQ until 31 May 2020 (Administrative Circular No. 39-2020)

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[Courts in areas covered by the MECQ shall remain physically closed, and deadlines falling due up to 31 May 2020 are extended for 30 calendar days, counted from 1 June 2020. Note that this is only for MECQ areas (update: new quarantine classifications from 1 to 15 June 2020). For areas under General Community Quarantine (GCQ), refer to Administrative Circular No 40-2020. Refer also to the previous guidelines.]

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Authentication of Articles of Incorporation in Registration of Domestic Corporations

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In registering with the Securities and Exchange Commission (SEC), a new domestic corporation must file its Articles of Incorporation, duly signed and “acknowledged or authenticated“,  containing substantially the required matters (see Contents of Articles of Incorporation). Acknowledgement and authentication are done differently, as provided in SEC Memorandum Circular No. 16 dated 29 April 2020 (Re: Guidelines on Authentication of Articles of Incorporation in Applications for Registration of New Domestic Corporations, published on 30 April 2020 in Manila Bulletin and Philippine Star).

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Corporations: Penalties for Incomplete, Inaccurate, False or Misleading Statements or Reports

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A corporation registered with the Securities and Exchange Commission (SEC) must comply with certain reportorial requirements, including the basic requirements of General Information Sheet (GIS) and the Annual Financial Statements (FS). [See General Information Sheet (GIS), Financial Statements (FS): Reportorial Requirements of Corporations]

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Retrenchment or Downsizing: Authorized Cause in Employment Termination

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Retrenchment refers to the economic ground for dismissing employees and is resorted to primarily to avoid or minimize business losses. Like redundancy, it is a form of downsizing. Retrenchment and redundancy are valid management prerogatives, provided they are done in good faith and the employer faithfully complies with the substantive and procedural requirements laid down by law and jurisprudence.

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