Category Archives: Corporate and Investments

Mining in the Philippines, Foreign Investments and the Grandfather Rule

How much foreign ownership is allowed for mining companies in the Philippines? The Supreme Court again discussed this issue in a recent ruling denying a motion for reconsideration filed by certain mining companies in the Philippines. The controversy is anchored on the requirement that mining, among other activities, is reserved by the Constitution — the highest law of the land — for Filipinos. Sec. 2, Art. XII of the Constitution, which provides that the exploration, development, and utilization of of natural resources is reserved to Filipinos, whether natural persons or juridical persons. Filipino juridical persons refer to “corporations or associations at least sixty per centrum of whose capital is owned by such citizens.” Continue reading

Rules on Principal Office Address of Corporations and Partnerships

The Securities and Exchange Commission (SEC) has extended the compliance period — until 30 June 2015 (per Memorandum Circular No. 1, series of 2015) — for companies and partnerships to comply with the required designation of the principal office address. We believe that it’s helpful to disseminate the information to non-clients as well, so we are summarizing the requirements below, culled from SEC Memorandum Circular No. 6 (series of 2014; full text) and SEC Memorandum Circular No. 16 (series of 2014; full text). Continue reading

Principal Office Address of Corporations and Partnerships (SEC Memorandum Circular No. 16; full text)

[See also SEC Rules on Principal Offic Address; and Memorandum Circular No. 6, series of 2014]

Republic of the Philippines
Department of Finance
Securities and Exchange Commission
SEC Building, EDSA, Greenhills, Mandaluyong City

MEMORANDUM CIRCULAR No. 16
Series of 2014.

TO : ALL CONCERNED

SUBJECT : PRINCIPAL OFFICE ADDRESS OF CORPORATIONS
AND PARTNERSHIPS Continue reading

Amendment of the Principal Office Address (SEC Memorandum Circular No. 6; full text)

[See also Rules on Principal Offic Address; and SEC Memorandum Circular No. 16, series of 2014]

Republic of the Philippines
Department of Finance
Securities and Exchange Commission
SEC Building, EDSA, Greenhills, Mandaluyong City

Company Registration and Monitoring Department

MEMORANDUM CIRCULAR No. 6
Series of 2014.

TO : ALL CONCERNED

SUBJECT : AMENDMENT OF THE PRINCIPAL OFFICE ADDRESS Continue reading

New Law Increasing the Exemption for 13th Month Pay and Other Benefits (Republic Act 10653)

Republic of the Philippines
Congress of the Philippines
Metro Manila

REPUBLIC ACT NO. 10653

AN ACT ADJUSTING THE 13TH MONTH PAY AND OTHER BENEFITS CEILING EXCLUDED FROM THE COMPUTATION OF GROSS INCOME FOR PURPOSES OF INCOME TAXATION, AMENDING FOR THE PURPOSE SECTION 32(B), CHAPTER VI OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED

Continue reading

Primer on the Anti-Red Tape Act of 2007 (RA 9485)

Is there a law that deals with red tape?

Yes. In addition to laws that deals with red tape, Congress enacted Republic Act (R.A.) No. 9485, also known as the “Anti-Red Tape Act of 2007“. If you want the longer title, it’s “An Act to Improve Efficiency in the Delivery of Government Service to the Public by Reducing Bureaucratic Red Tape, Preventing Graft and Corruption, and Providing Penalties Therefor“. Continue reading

FAQ on 13th Month Pay

What is 13th month pay?

It is a form of monetary assistance equivalent to the monthly basic compensation received by an employee, computed pro-rata according to the number of months within a year that an employee has rendered service to an employer (basic monthly pay/12 x number of months actually worked). Continue reading

Holiday Economics in the Philippines

We celebrate holidays to commemorate an event or a person of special significance to the country. While the declaration of holidays is supposed to bring unity, it sometimes results to confusion in the workplace, even if unintended. Continue reading

Dam Operator liable for Negligence in Flooding

The recent flooding recently caused by the heavy rainfall brought by Typhoons Ondoy and Pepeng has caused tremendous damage to life and property. Also recently, there are threats to sue the dam operators who were allegedly negligent in releasing water too late and without sufficient warning. Continue reading

Liability of a Co-Maker: Distinguished from Guarantor

Maybe you’ve been asked by a friend to sign as a co-maker in a loan. You’re then asked to sign a promissory note or a debt instrument which designates you as a co-maker. There should be no problem with this, as the principal is usually someone we know and trust. I’ve seen, however, co-makers being held liable because the principal debtor was not able to pay. We also have a number of queries related to this issue. So let’s have a brief discussion on the extent of a co-maker’s liability. Continue reading