Nireject yung sinubmit natin na document. Bakit irereject? Because we failed. 1.

Failure to observe the form prescribed. Yung articles of incorporation may format.
Kapag di mo sinunod format, may problem aka. May pangalan, may purpose.
Kapag di marunong gumawa go to SEC may ready-form, ififill up mo lang yung
blanko. 2. Failure to meet minimum Filipino ownership. Fortunately, meron pa
ring businesses reserved to Filipinos. Retail trade 100% Pinoy. Kapag natural
resources 60% business mo involves natural resources, 60% dapat Filipino-
owned pa rin. And kung later on inacquire ng another corporation, nagkaroon ng
parent and holding, dapat yung hahawak sayo 60% pa rin Filipino owned.
Grandfather rule. Pangatlo, the failure to submit favorable recommendation from
the appropriate government agency in charge of the corporation activities kasi
special corporations. Corporations involved in businesses which involves public
interest and welfare. Kapag ang itatayo natin negosyo makakaaffect ng public, di
tayo dederecho sa SEC, dadaan tayo sa appropriate government agency tasked
to monitor and regulate our activity. Kung paaralan, di dederecho sa SEC. If
basic ed, DepEd, if tertiary CHED, if vocational TESDA. Kapag transporation
business, if by land LTO. If banks, BSP. Kapag makakaaffect sa public welfare,
kailangan mo muna dumaan sa appropriate government agency. Kapag nakita
ng SEC na ang purpose natin is magtatayo tayo ng Red Light District.
Prostitution houses. Hindi tayo papayagan kasi purpose pa lang natin is
unconstitutional, ang purpose natin is contrary to existing government rules and
regulations, ang purpose pala natin illegal immoral. Or baka nakita ang
Treasurer’s affidavit ay false tayo pala naka par value so as to par, meron tayong
par or pwede rin tayong walang par. Kapag may par tayo, tatandaan mo ang
original issue price niyan kasi baka reissuance or treasury stock, hindi ito
applicable. Ang original issue price niyan only at par or above par. Huwag na
huwag mo iissue ang shares below par that violates the Trust Fund Doctrine.
How much is the par? It will depend on the incorporators kung magkano. Gusto
mo konti lang maging stockholders? Mahalan mo. Gusto mo marami? Mura.
Gusto mo par value P1,000,000, konti lang makakabili niyan. Par value P1
marami makakabili. Pagpalagay mo P10 ang par, kapag ibinenta yan ng P10,
ang amount na matatanggap mo legal capital, kapag binenta above par say P12,
out of the P12 na napagbentahan niyo, yung P10 yung legal capital, yung excess
na P2 yung paid-in capital. Now ang tanong bakit kailangan idistinguish mo kung
ang natanggap ay legal capital or hindi. Baka later the corporation may decide to
declare dividends. Kapag nagdeclare ka ng dividend wag kang kukuha ng
dividend sa legal capital. Hindi siya profit eh, puhunan siya. Sa paid in capital
pwede. Kung sakaling no-par, alam dapat makikita. Kasi kapag may par ka,
makikita yung authorized capital stock. Kaya makikita baka mali yung Treasurer’s
affidavit. Kapag no par, may minimum issue price yan. Hindi siya dapat bumaba
sa P5 minimum na yan. Kapag binenta yan ng P5, P5 is legal capital, kapag
binenta ng P8, P8 is legal capital. Therefore we conclude there is no paid-in
capital in excess of no par. At tatandaan mo although libre tayo magsabi kung
may par or wala, subalit ang mga sumusunod not allowed. Hindi sila
pinapayagan to issue no par. So you bet naka-par sila. Pag sila ay mga BITPUB.
B-banks, I-insurance companies, T-trust companies, PU-public utilities, B-
buildings and loan associations. What if wala tayo sa limang ito? Ano gagawin ng
SEC? Ang SEC ay iaapprove tayo. Kapag inapprove tayo ng SEC, pano natin
malalaman na inapprove tayo? Iissue ng SEC an gating certificate of
incorporation at dahil meron tayong certificate, it marks the birth of the
corporation. At dahil ipinanganak na tayo, nagkaroon na tayo ng secondary
franchise. Ano ang ibig sabihin ng secondary franchise? This is our right to
commence our operation. Ano ang primary franchise? Primary is the right of the
stockholders to organize the corporation. So ang primary, nasa stockholders,
nasa incorporators. That’s the right of the incorporators to organize. Ang
secondary nasa corporation. Pero may obligation. Ano obligation? Kasi sabi
within 2 years dapat ka mag commence from the issuance of the certificate. So
obligation siya. Otherwise, kapag di ka nakapagcommence. Ano mangyayari?
Ang corporation ay automatically dissolved. ANo magandang proof na tayo ay
nagcommence ng operation? Ano mapapakita natin? Tatawag na tayo ng
election. Iboboto na natin ang members ng board at ang officers natin. Board of
Directors and Board of Trustees. Sino pumipili ng Board of Directors? Ang may-
ari ng corporation. Stockholders. Sila ang pipili. Ano tawag sa may-ari kapag
non-stock? Members. Sino pipili ng officers? Ang mananalong members ng
board sila ang pipili. Para manalo ka bilang member ng board of directors ano
dapat? Ikaw dapat 1.Di ka convicted by final judgment when there is
imprisonment for more than 6 years. Today, si Mr. A naconvict ng RTC ang
naging hatol sakanya reclusion perpetua. Is Mr. A still qualified? Qualified. Ka-
coconvict lang niya therefore di pa final ang judgment. Kapag ang hatol pwede
pa i-appeal or naka-appeal, di final di ka pa disqualified. 2. Baka siya ay dapat
not guilty ng violation ng Corporation Code committed within 5 years prior to the
election. 3. He must own at least 1 share except if di pwede kasi greater number
is required ng corporation. Kapag boboto ka naman ng BOT, 1 and 2 requisites
mentioned above. 3. You must be a member of the corporation. At pano sila
binoboto? Kapag bumoboto tayo ng BOD, at BOT pwede kaya ang cumulative?
Straight-voting? Yes. Sa BOT bawal ang cumulative, straight lang. Paano
ginagawa ang cumulative voting? Ipagpalagay mo boboto tayo ng director, kapag
director ang binoboto at may isang share ka, entitled ka sa 1 vote. At yung vote
mong yan imumultiply sa number of directors na iboboto equals you total votes
available. So by way of illustration, ipagpalagay mo may 5 directors na mananalo
at meron kang 1 share, so meron ka 1 share x 5 kaya meron kang 5 votes. Dahil
pwede ang cumulative, pwede mo siya ipunin. SO pwede ka mag cumulative
voting by total. Ano ibig sabihin niyan? Pwede yung 5 votes mo ibigay mo lahat
kay A, 5 pwede. Pwede mo rin gawin by distribution. Pwede yung 5 votes mo
hatiin mo bigyan mo si A ng 3 votes at si B ng 2 votes. Kaya sa ating election ng
board of directors, the election is yet to commence and yet we already know who
the winners are kasi of cumulative. Bakit? Ipagpalagay mo itanong ka ng client
mo, I want to be elected, ilan ba ang kailangan kong minimum number of
shares? ANg tanong niya minimum na kailangan niya. Or sabi niya ilang
minimum na boto ang kailangan ko. Anong sasabihin mo sakanya? Ilan po ang
outstanding shares ng corporation? Sabi niya nasa stock transfer book ay 1,000,
ilan po mananalong directors? 5. So ang total votes available ay 5,000. Ano
sagot mo sakanya? Kung 5,000 po ang outstanding patingin po ng shares na
nasa inyong pangalan kapag umabot po kayo ng 167, nanalo na kayo. Kasi 167
x 5 you already have 835 votes. You only need this. Hindi mo kailangan ng
maraming boto. Eh sabi niyo 5,000 eh yung kalaban ko sila may-ari ng 4,165.
Okay lang po. Hindi ka matatalo. 835 will definitely sit in the board. There’s no
way 4,165 can unseat an 835. There’s no way the 4,165 can elect 5 directors, at
most it can elect 4. Paano nakuha yan? If shares ang tinatanong, ang numerator
mo outstanding shares divided by the number of directors to be elected + 1/3
divided by six. At para walang tie plus 1. Kapag boto ang tinatanong, ang
numerator mo get the total votes divided by number of directors to be elected +
1. At yung result + 1. Unlike pag board of trustees, sa board of trustees di pwede
ang cumulative. Kaya kapag boboto ng BOT ang 1 member entitled lang s 1 vote
to be multiplied by the number of trustees to be elected. Yan na ang iyong total
votes. Kaya kapag may 5 trustees na iboboto at ikaw si A member ka, may 1
vote ka imumultiply ng 5. Meron ka 5 votes. Pero bawal ka mag cumulative. Ang
pwede mo lang ibigay 1 vote per candidate. Kaya pag bumoboto ng BOT para ka
lang bumoboto ng public officials. At dahil meron na tayong board, it’s high time
now we elect our officers. Ang officers natin ay iboboto na natin. Para maboto
ang officers, ang board na ang magdedecide. At hindi pwede magdecide ang
board kapag wala siyang quorum. Dapat may quorum siya. Ano ibig sabihin ng
quorum? The minimum number who should be present. Gaano karami? As
required by the by laws, or AOI. Kapag silent pano? Ang quorum ay majority.
What is majority? ½ +1. Therefore by way of illustration kung ang members ng
board ay 9, ang ½ niyan ay 4 ½ +1/ So dapat present ang 5 ½. Wala naman
taong half kaya inaalis nalang yan. So majority ay 5. 5 is more than ½ of 9.
Kapag matapos iestablish ang quorum, dapat gagawa ng decision. For them to
make decision anong klaseng decision? Kapag election ng officer dapat makuha
natin majority vote of all members of the board. Kapag ang gagawin ay other
than election, passing ng resolution, kailangan lang makuha majority ng present.
Kung 9 ang members ng board at umattend lahat, 7 ang in favor. Is the officer
elected? Is the resolution approved? Yes. 5 in favor? Elected. 4 in favor, elected,
approved? No. What if only 7 attended, and out of 7 who attended, 5 in favor?
Elected? Yes. Approved? Yes. 4 in favor? Elected? Yes. Approved? No.
Magkaiba ng sagot diba. What if only 5 will attend and of the 5 voted unanimous.
Elected? Yes. Is the resolution approved? Yes. 3 in favor elected? No.
Approved? Yes. 2 in favor? Elected? No. Approved? No. What if only 4 attended
and all the 4 voted in favor. Elected? No. Approved? No. Walang quorum. Di
dapat matuloy ang meeting na ito, walang quorum. Para sa election and all acts
other than election, dapat lagi may majority. If di present ang majority, forget the
meeting. Any meeting without a quorum is void. Anything you will have in that
meeting is void. Even what has been agreed upon is very good, commendable,
noble, forget it because you violated the rules. Yan ang number 1 requirement.
Walang personality to continue the meeting, you do not have the majority. Iboto
na natin an gating officers. Piliin na natin yung pangulo. Ang president should be
a member of the board. At ang president ang nagprepreside sa lahat ng meeting
ke meeting ng stockholders ke meeting ng board, except if they provided
otherwise. Baka nilagay nila ang magprepreside si Chairman. Marami ang nag-
aakala na ang nagppreside sa meeting ay chairman. Mali. Ang nagprepreside sa
meeting ay Presidente. Pero kung ang gusto niyo si Chairman, ilagay niyo na
siya. Kaya ordinarily, sa malalaking corporations, the President is also the
chairman pero di necessarily. Tapos pipiliin natin ang taga-sulat the Secretary.
The secretary is required to be a resident and a citizen of the Philippines. Tapos
may treasurer tayo. Ito ang 3 top corporate officers. Subalit walang requirement
sa treasurer. At meron tayong tinatawag however na incompatible office. One
person cannot be the President and the Secretary. He cannot be the President
and Treasurer. Pero pwede siya humawak ng ibang pwesto. President and
Chairman. Sabi niya, ako na rin ang Vice President. So he can hold any other
position wag lang secretary and treasurer. At ngayong may board and officers
let’s now show to all, that we’re now starting the business by availing of
ourselves of the power of a corporation – the expressed, implied, incidental. The
most superior in the management of the corporation. A. President, B. Board of
Directors, C. Chairman, D. Stockholders. Sino ang pinakamakapangyarihan?
Kapag may shares k aba sa San Miguel so stockholder ka, meron ka bang boses
doon? Wala kang boses doon. Wala kang power. Nasa board of directors. Lahat
ng powers ng corporation will be exercised by the board. Siya ang most powerful.
Kaya lahat ng stockholders gusto manalong members ng board.