Regulatory Alerts2020-04-07
MC No. 12 s.2020 — Shareholders’ Approval on Sale of Corporate Assets
The Securities and Exchange Commission issued this memorandum circular to mandate shareholder approval for the sale of corporate assets amounting to at least 51% of total assets. The rule requires a two-thirds vote of outstanding capital stock for such transactions, including aggregate sales within a one-year period that breach the threshold. Compliance is determined using the latest audited or quarterly financial statements, with violations subject to sanctions under the Revised Corporation Code of the Philippines.
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