The Securities and Exchange Commission issued draft guidelines on the revival of corporations whose terms had expired prior to the enactment of Republic Act No. 11232 or the Revised Corporation Code of the Philippines.
The SEC said in a statement the proposed guidelines on the revival of expired corporations were pursuant to Section 11 of the Revised Corporation Code which provides for the perpetual existence of corporations.
It said that as a part of the shift to a perpetual corporate term, the Revised Corporation Code allows an expired corporation to apply for the revival of its existence, together 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.
“The revival of expired corporations will ultimately benefit our society. This will translate to more market players competing, introducing innovations and more choices, and creating employment opportunities, among others,” SEC chairman Emilio Aquino said.
Under the draft guidelines, an expired corporation seeking to revive its existence should file with the corporate regulator a verified petition for revival, signed by a majority of the board of directors or trustees, the corporate secretary and corporate treasurer.