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Lesson 2-Incorporation and Organization
Lesson 2-Incorporation and Organization
LESSON 2
SEC 25 RCC
SECS 162 RCC
SEC 161 RCC VIS A VIS SECS 45,73,92,128,177 RCC
SEC 21 RCC
EFFECT OF NON-USE OF CORPORATE CHARTER/CONTINUOUS INOPERATION
Failure to resume operations within the period given by the SEC shall cause the
revocation of its certificate of incorporation (Sec. 21 RCC).
PREPARATION/DRAFTING/EXECUTION OF AOI
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FORM/CONTENTS
1. CORPORATE NAME
NOT
NOT
PROTECTED BY LAW
NOT
2. PURPOSE/S-PRIMARY/SECONDARY
-SEC 13 (b) RCC/14 SECOND RCC
4. TERM
-SEC 13 (d) RCC/14 FOURTH RCC/SEC II RCC
The corporate term limit of 50 years has been removed such that a
corporation can now enjoy perpetual existence unless expressly limited by
its AOI.
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Such perpetual corporate term shall also apply to corporations
incorporated prior to the RCC, unless said corporations elect to retain a
specific corporate term.
The new law also states that a corporation whose term has expired can
apply with the Securities and Exchange Commission (SEC) for the revival
of its corporate existence, with all the rights and privileges under its
certificate of incorporation and subject to all of its duties, debts and
liabilities existing prior to its revival. Upon the SEC’s approval, the
corporation shall be deemed revived and a certificate of revival of
corporate existence shall be issued giving it perpetual existence, unless its
application for revival provides otherwise (Sec. 11 RCC).
EXTENSION/SHORTENING
STEPS/RULES:
1.BOARD RES
2. SH RES
NOTICE OF MEETING
PME-PERSONAL/MAIL/E NOTICE
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3. AMENDED AOI
6. EFFECTIVITY
-SEC 36 RCC
SHORTENING
5. IINCORPORAT4ORS
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an estate. A shareholder may acquire all the stocks of an ordinary stock
corporation and apply for the conversion thereof into an OPC. In terms of
liability, the single shareholder claiming limited liability has the burden of
affirmatively showing that the corporation was adequately financed (Sec.
18, 115, 116, 130, 131
RCC).
MNEMONICS-No PAIRS
No
-NUMBER
GR-SEC 10-1-15 RCC
SEC 115-132 RCC-OPC
EXCEPTIONS
SEC 13 (f) RCC/91 RCC
-NON STOCK-MAY BE MORE THAN 15/MAY
NOT BE MORE THAN 15
SEC 95 RCC
-CLOSE-1-20
P
-PERSONS-NATURAL OR JURIDICAL/SINGLY OR JOINTLY
A
-AGE-NATURAL PERSON-LEGAL AGE-18 AND ABOVE
I
-INCAPACITY-NATURAL PERSON-NOT SUFFERING FROM
INCAPACITY OR LEGAL IMPEDIMENT SUCH AS INSANITY,
INSOLVENCY, CIVIL INTERDICTION
R
-RESIDENCE-RESIDENCE ADDRESSES
S
-SHAREHOLDER/STOCKHOLDER-MUST OWN AT LEAST 1
STOCK/SHARE
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6. DIRECTORS
-SEC 13 (f) RCC/SEC 14 SIXTH RCC/SECS 22-34 RCC
Stock corporations are still not required to have a minimum capital stock, unless
specifically provided by special law.
STOCK
-ACS-SEC 13 (h) RCC-INITIAL CAPITAL/FUND/MONEY
-OCS-SEC 173 RCC-ISSUED CAPITAL STOCK
NON STOCK
-CAPITAL CONTRIBUTIONS/DONATIONS-SEC 13 (i) RCC
8. SUCS
-SEC 13 (i) RCC/SEC 14 EIGHTH RCC
STOCK
-SUBSCRIBED-
NON STOCK
-NAMES, NATIONALITIIES AND RESIDENCE ADDRESSES
OF DONORS/CONTRIBUTORS AND AMOUNT GIVEN-SEC
13 (i) RCC
The RCC removed the requirement that 25% of the authorized capital stock be
subscribed and that 25% of the subscribed capital stock be paid for purposes of
incorporation as previously mandated under Section 13 of the Corporation Code,
which was deleted in its entirety (Sec. 12 RCC).
However, the 25%-25% requirement was retained for any increase in the
authorized capital stock (Sec. 27 RCC).
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OTHER MATTERS
-SEC 13 (j) RCC
9. INTERIM TREASURER
-SEC 13 (h)/SEC 14 NINTH RCC
AMENDMENT OF AOI
-SEC 15 RCC
MNEMONICS-LAFE
L
-LEGITIMATE PURPOSE/S-SEC 15 1ST PAR RCC
A
-APPROVAL/ASSENT-SEC 15 1ST PAR RCC
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BOD/T MEETING HELD
-BOARD RES-MAJORITY VOTE
SHS/MS MEETING HELD
-SHS/MS RES-2/3 OCS/MS
WITH NOTICE
– PERSONAL/MAIL/E NOTICE
NOT COMPLIANT
MNEMONICS-COP FoR
C
-CERTIFICATION OF TREASURER ANENT SUCS AND/OR PUCS IS
FALSE
O
-OWNERSHIP OF C/S-REQUIRED % NOT COMPLIED WITH
P
-PURPOSE-ILLEGAL, UNCONSTITUTIONAL, IMMORAL, CONTRARY TO
GOVT RULES AN REGULATIONS
Fo
-FORM-AS PRESCRIBED BY SEC
R
-RECOMMENDATION-NO FAVORABLE RECOMMENDATION FROM
APPROPRIATE GOVERNMENT AGENCIES
NSSLAS-
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