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Business Times

˜ The Manila Times w w w.manilatimes.net

WEDNESDAY May 1, 2019

OPC: Conversion from ordinary stock corporation

S

%#4)/.  OF 2EPUBLIC !CT .O   OTHERWISE KNOWN AS THE 2EVISED #ORPORATION #ODE OFTHE0HILIPPINES2## PROVIDES FORTHECONVERSIONOFANORDINARY corporation into a One Person Corporation (OPC). #ONVERSIONISDEkNEDASAPROCESSOFCAUSINGSOMETHINGTOCHANGE FROMONECONkGURATIONTOANOTHER )T INVOLVES PUTTING IN SOMETHING CALLED THE @)NPUT TO BE OPERATED ONBYTHEPROCESSTOPRODUCEANOTHERCALLEDTHE@/UTPUT4OFULLY APPRECIATE THE CONVERSION UNDER 3ECTIONOFTHE2## WEMUST UNDERSTANDBOTHTHEINPUTANDTHE OUTPUTOFTHECONVERSIONPROCESS &IRST LETUSBEGINWITHTHEOUTPUT !N/0#ISONEOFTHEGAME CHANGING PROVISIONS INTRODUCED BY THE 2##)TISDEkNEDASACORPORATION WITHASINGLESTOCKHOLDER3ECTION  2## THUS ITONLYPERTAINSTO STOCKCORPORATIONS 4HE2##ONLYALLOWSANATURAL PERSON ATRUST ORANESTATETOFORM an OPC (Section 116, RCC). This MEANS THE #ONGRESS INTENDED TO EXCLUDE JURIDICAL PERSONS FROM BECOMING AN INCORPORATOR OF AN

/0#,IKEWISE CERTAINENTITIESARE not allowed to be incorporated AS AN /0#  INCLUDING BANKS AND QUASI BANKS PRE NEED TRUST INSURANCE  PUBLIC AND PUBLICLY LISTED companies, and non-chartered GOVERNMENT OWNEDAND CONTROLLED corporations (Section 116, RCC). /N THE OTHER HAND  THE INPUT REQUIREDFORCONVERSIONUNDER3ECTIONOFTHE2##REFERSONLYTO ANORDINARYSTOCKCORPORATION4HE AFORESAID PROVISION STATES THAT AN ORDINARY STOCK CORPORATION MAY APPLYFORCONVERSIONINTOAN/0# WHENASINGLESTOCKHOLDERACQUIRES ALLITSSTOCKS 5NDER THE DRAFT GUIDELINES ON THECONVERSIONOFANORDINARYSTOCK corporation into a OPC, which the COMMISSIONISCURRENTLYkNALIZING  THE SINGLE STOCKHOLDER MUST kRST ACQUIREALLTHESTOCKSOFTHEORDINARY CORPORATIONBEFORETHELATTERMAY BEALLOWEDTOAPPLYFORCONVERSION )NITSAPPLICATIONFORCONVERSION  THE ORDINARY STOCK CORPORATION MUST CHANGE ITS CORPORATE NAME to indicate the letters ‘OPC’ either BELOWORATTHEENDOFITSCORPORATE NAME3ECTION 2## )TMUST

Q PROJECTION FROM B1

SEC MATTERS

KELVIN LESTER LEE ALSO REMOVE ANY SUFkX INDICATING THAT IT IS AN ORDINARY STOCK CORPORATION  SUCH AS g#ORPORATIONu  g)NCORPORATEDu g#ORPu ORg)NCu &URTHERMORE ITWILLNOTBEREQUIRED TOSUBMITANDkLEANEWSETOFCORporate by-laws. (OWEVER  THE ORDINARY STOCK CORPORATION SHALL RETAIN ITS 3%# COMPANY REGISTRATION NUMBER 4HIS IS IN CONSIDERATION OF THE PROVISIONUNDER3ECTIONOFTHE RCC which states that, “The OPC CONVERTEDFROMANORDINARYSTOCK CORPORATIONSHALLSUCCEEDTHELATTER ANDBELEGALLYRESPONSIBLEFORALLTHE LATTERSOUTSTANDINGLIABILITIESASOF THEDATEOFCONVERSIONu -OREOVER  IT NECESSARY FOLLOWS THAT THE APPLICATION SHOULD NOT ALTERORAMENDTHEAMOUNTOFAUTHORIZED  SUBSCRIBED AND PAID IN CAPITALSTOCKOFTHECORPORATIONIN VIEWOFTHEg4RUST&UND$OCTRINEu 

WHEREIN THE CAPITAL STOCK OF A corporation, as well as all its other PROPERTY AND ASSETS  ARE GENERALLY REGARDEDINEQUITYASATRUSTFUND FORTHEPAYMENTOFCORPORATEDEBTS 4HISGIVESCREDITORSOFTHECORPORATIONTHERIGHTTOPRIORITYPAYMENT OVERANYSTOCKHOLDERTHEREOF4HIS ALSOLESSENSTHEBARRIERSFOROPENING ACORPORATIONANDINDOINGBUSINESS in the Philippines. 4HEORDINARYSTOCKCORPORATION MUST ALSO DESIGNATE A NOMINEE and an alternate nominee, and the WRITTEN CONSENT OF THE NOMINEE AND ALTERNATE NOMINEE MUST BE attached in its application (Section 124, RCC). The nominee SHALL SIT AS DIRECTOR AND MANAGE THEAFFAIRSOFTHEPROPOSED/0#IN THEEVENTTHESINGLESTOCKHOLDERIS temporarily incapacitated (Section   2##  )N CASE OF DEATH OR PERMANENTINCAPACITYOFTHESINGLE STOCKHOLDER THENOMINEESHALLSIT ASDIRECTORANDMANAGETHEAFFAIRS OFTHE/0#UNTILTHELEGALHEIRSOF THE SINGLE STOCKHOLDER HAVE BEEN LAWFULLYDETERMINED ANDTHEHEIRS HAVE DESIGNATED ONE OF THEM OR HAVEAGREEDTHATTHEESTATESHALLBE

CENT AND"ANGKOKROSEPERCENT -EANWHILE  (ONG +ONG FELL  PERCENT 3EOULDROPPEDPERCENT  3INGAPORESLIPPEDPERCENT4OKYOISONALONGHOLIDAYBREAK )NTHEREGION 3HANGHAIGREW )N -ANILA  ONLY THE MINING AND PERCENT *AKARTAINCHEDUPPER- OIL AND kNANCIALS SECTORS REGISTERED

losses, down 0.52 percent and 0.02 PERCENT RESPECTIVELY 6OLUMETURNOVERSTOODATMILLIONVALUEDAT0BILLION Winners led losers, 99 to 89, while ISSUESREMAINEDUNCHANGED ANGELICA BALLESTEROS

FOR PRIVATE AND STATE OWNED BUSINESSES  AND DOMESTIC AND MULTINATIONALkRMS g3OMESUBSIDIESHAVEBEENSTOPPED  AND)BELIEVETHEPRINCIPLEOFCOMPETITIVENEUTRALITYWILLBEIMPLEMENTEDIN ALLASPECTSINTHEFUTURE uSAIDECONOMIST #UI &AN OF THE 5NIVERSITY OF )NTERNATIONAL"USINESSAND%CONOMICS ! NEW FOREIGN INVESTMENT LAW GUARANTEED FOREIGN INVESTED FIRMS

ANDAVARIETYOFDIFFERENTAGENCIESALL DOLINGOUTGRANTSTOSUPPORTkRMSIN FAVOUREDINDUSTRIES 4HE 53S MAIN GOAL gWOULD BE TO LISTOUTALLSUBSIDIESTHATARERECEIVED DOMESTICALLY WITHIN #HINA TODAY u 0ARKERSAID g4RANSPARENCY  EQUAL ACCESS FOR FOREIGNCOMPANIES ANDENFORCEMENT OF THAT TRANSPARENCY IS PROBABLY THE KEY uHESAID  AFP

PSEi hits 7,900 on lower 0.04 percent, 0.11 percent and 0.19 PERCENT RESPECTIVELY

Q TALKS FROM B1

USÂ trade INDUSTRIES OROTHERSTRATEGICAREASSEEN ASKEYTO#HINASFUTURE #HINAS3TATE#OUNCIL ITSCABINET  HAS IN RECENT MONTHS RETURNED REPEATEDLY TO THE IDEA OF COMPETITIVE NEUTRALITY MEANINGEQUALTREATMENT

THESINGLESTOCKHOLDEROFTHE/0# The alternate nominee shall sit as DIRECTOR AND MANAGE THE /0# IN CASE OF THE NOMINEES INABILITY  INCAPACITY DEATH ORREFUSALTODISCHARGETHEFUNCTIONSASDIRECTORAND MANAGER OF THE CORPORATION  AND ONLYFORTHESAMETERMANDUNDER the same conditions applicable to the nominee(Section 125, RCC). !TTHISPOINT )THINK)HAVEALREADYGONETHROUGHALLTHESALIENT ITEMSPERTAININGTOCONVERSIONFROM ANORDINARYSTOCKCORPORATIONTOAN /0#!SPARTOFTHEIMPLEMENTATIONOFTHISINITIATIVE THE3%#WILL BE ISSUING VARIOUS MEMORANDUM CIRCULARS -#S  SOON ) ADVISE MONITORINGOFTHE3%#WEBSITEFOR UPDATESONTHEVARYING-#S2EST ASSURED THE 3%# IS COMMITTED TO HELPINGOURCOMPANIESASPARTOFITS JOINTEFFORTSINEASEOFDOINGBUSIness in the Philippines, with the PURPOSEOFIMPROVINGANDSIMPLIFYINGREGULATIONSFORBUSINESSAND INTRODUCINGSTRONGERPROTECTIONSOF PROPERTYRIGHTS 7ITHTHEHELPOF3ECTIONOF THE 2##  ORDINARY STOCK CORPORATIONSAREENCOURAGEDTOAVAILOFTHE

EQUALACCESSTOSTATEAIDPROGRAMMES  he noted. 4HE5NITED3TATESANDTHE%UROPEAN 5NION HAVE LONG COMPLAINED THAT #HINAHASCREATEDANUNEVENPLAYING kELD BY HEAVILY SUBSIDISING #HINESE kRMS  WHILE ERECTING HURDLES FOR FOREIGN COMPANIES SEEKING TO TAP THE !SIANPOWERSVASTMARKET #HINASSUBSIDIESAREHIGHLYOPAQUE  WITHTHELOCALANDCENTRALGOVERNMENTS

ORDINARYSTOCKCORPORATIONm/0# CONVERSIONPROCESS4HISWILLENABLE them to streamline their decisionMAKINGPROCESSESANDBECOMEMORE RESPONSIVETOTHECHANGINGBUSINESS CONDITIONS AND ENVIRONMENTAL INTERACTIONSASTHEYOCCUR(ENCE  WEATTHE3%# BELIEVETHATWITHTHE FULLY EQUIPPED 2##  OUR GOAL TO NAMETHE0HILIPPINESASONEOFTHE BESTINVESTMENTDESTINATIONSINTHE world, especially with the proper IMPLEMENTATIONOFTHEPROVISIONS ONTHEEASEOFDOINGBUSINESSINTHE Philippines and more importantly, IMPROVEMENTOFOURSTANDINGINTHE 7ORLD"ANK%ASEOF$OING"USINESS RANKINGS ISINOURHANDSNOW7ITH PROPER IMPLEMENTATION  COUPLED WITHCOMPETITIVENESSANDPARTICIPATIONFROMEACHANDEVERYONEOFUS  EVERYSTAKEHOLDERCOULDSAYTHAT g)TS EASY 3%#Ãœu

+ELVIN ,ESTER + ,EE IS A #OMMISSIONER OF THE 3ECURITIES AND %XCHANGE#OMMISSION3%# 4HE VIEWSAND OPINIONSSTATEDHEREIN AREHISOWN9OUMAYEMAILYOUR COMMENTSANDQUESTIONSTOOCLEE SECGOVPH

Q PEREZ FROM B1

Holcim and the full 3OMETIMES $UE$ILIGENCERISPERCEIVEDTOFAVORMORE THE PUBLIC THAN LISTED COMPANIES 4HIS MAY BE TRUE BECAUSE IT IS THE PUBLIC THAT MAKE FAMILY BUSINESSES TRADEDON03% 7ITHOUTTHEPUBLIC THEVERYRICHFAMILIESWOULDBE ENRICHINGTHECOFFERSOFTHE"UREAUOF)NTERNAL2EVENUE BYPAYINGMORETAXES)FTHEYAREONLYBEINGUSEDTOGET THESEBUSINESSESSHARESLISTEDON03% SOBEIT 7HATTHESEFAMILY OWNEDBUSINESSESMUSTDOTOIMPRESS MORETHEPUBLICINVESTORSISFORTHEMTOABIDEBYTHEFULL DISCLOSURERULE (OWABOUTFULLYDISCLOSINGWHATTAKESPLACEINSIDETHE BOARDROOMS*USTASKING

EDPEREZ GMAILCOM

Profile for The Manila Times

THE MANILA TIMES | MAY 01, 2019  

The Manila Times is one of the leading national broadsheets in the Philippines. It is also one of the oldest, having been founded in 1898.

THE MANILA TIMES | MAY 01, 2019  

The Manila Times is one of the leading national broadsheets in the Philippines. It is also one of the oldest, having been founded in 1898.

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