Are directors required to be residents of the Philippines? The Revised Corporation Code (“RCC”) provides the qualifications of a director of a corporation. The qualifications of a director may be summarized as follows: (1) must have legal ownership of at least one share of the capital stock, as provided under […]
OPINION
Can tax liabilities be abated or cancelled? Under Section 204 of the National Internal Revenue Code (“NIRC”), the Commissioner may abate or cancel a tax liability under the following conditions: 1. The tax or any portion thereof appears to be unjustly or excessively assessed; or 2. The administration and collection […]
Is the mere closure of current factory and termination of current employees, and relocation to a bigger location with new employees violative of the security of tenure of its current employees? The answer is yes. Article 294 of the Labor Code provides that “[i]n cases of regular employment, the employer […]
What is the situs rule in local taxation? How are entities with branch offices, sales offices, project offices, factories, plants and others taxed? Local business taxes (“LBT”) are taxes imposed by local government units on the privilege of doing business within their jurisdiction. The rules on situs of LBT under […]
Can an employer validly terminate employment of employees due to closure of business? Yes, provided that the closure is due business due to serious business losses or financial reverses. Article 298 of the Labor Code provides that the employer may also terminate the employment of any employee due to the […]
Section 18 of the Magna Carta of Women provides that “[a] woman employee having rendered continuous aggregate employment service of at least six (6) months for the last twelve (12) months shall be entitled to a special leave benefit of two (2) months with full pay based on her gross […]
What is the extent of employer’s liability on work-related injuries? At the outset it must be noted that for liability to attach to the employer in relation to injuries related to employment, the Supreme Court in the case of U-Bix Corp. v. Bandiola (G.R. No. 157168, 26 June 2007), ruled that the injury […]
Section 73 of the Revised Corporation Code (“RCC”) provides that “[corporate records, regardless of the form in which they are stored, shall be open to inspection by any director, trustee, stockholder or member of the corporation in person or by a representative at reasonable hours on business days, and a demand in […]
The principle of invalidity of a transfer prior to a recording of the same in the books of a corporation under Section 62 of the Revised Corporation Code (“RCC”) has been consistently upheld on numerous occasions by the Supreme Court and by the SEC. In the case of Teng vs. […]
Are all contracts required to be notarized? In Tabao v. Lacaba, A.C. No. 9269, March 13, 2019 citing Triol v. Agcaoili, Jr., A.C. No. 12011, June 26, 2018 the Supreme Court reiterated the rule that “[n]otarization converts a private document into a public document, making it admissible in evidence without […]
