Regulatory Alerts2020-08-18
SEC Memorandum Circular No. 22 Series of 2020: Guidelines on Corporate Term
The Securities and Exchange Commission issued these guidelines to implement Section 11 of the Revised Corporation Code, establishing that all corporations incorporated under the new code have perpetual existence unless their articles specify otherwise. Existing corporations with prior certificates of incorporation are deemed to have perpetual terms automatically, but they must file a notice to retain specific terms within two years of the code's effectivity or face automatic conversion to perpetual status. The circular further details the voting requirements and procedures for amending articles of incorporation to extend, shorten, or change the nature of a corporation's corporate term.
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