DISCUSSION ON THE RESIDENCY REQUIREMENTS FOR DIRECTORS
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…
ABATEMENT AND CANCELLATION OF TAX LIABILITY
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…
SECURITY OF TENURE OF EMPLOYEES
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…
SITUS RULES IN LOCAL TAXATION
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…
CLOSURE IS DUE BUSINESS DUE TO SERIOUS BUSINESS LOSSES OR FINANCIAL REVERSES
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…
SPECIAL LEAVE BENEFITS UNDER THE MAGNA CARTA OF WOMEN
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)…
WORK-RELATED INJURRIES
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.…
DATA PRIVACY CONSIDERATIONS ON THE RIGHT TO INSPECT OF CORPORATE RECORDS
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…
RECORDING IN THE STOCK AND TRANSFER BOOK
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…
IMPORTANCE OF NOTARIZATION
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…