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Point of Law

The following articles were written by Francisco Ed. Lim and also published in The Philippine Daily Inquirer.

April 27, 2017

Sometimes, companies with expiring corporate terms fail to timely apply for an extension with the Securities and Exchange Commission (SEC). In some instances, they do initiate the process of extension by getting the requisite board and stockholders’ approval for amendment of their articles of incorporation but for one reason or another, they fail to go to the SEC before the deadline. A case in... Read More

March 30, 2017

The January 2017 resolution of the Supreme Court (SC) settled the controversy involving the PEACe (Poverty Eradication and Alleviation Certificates) bonds and resolved the propriety of subjecting the P24.3-billion discount to 20-percent final withholding tax of around P4.9 billion. The Bureau of Internal Revenue issued two rulings a few days prior to the bonds’ maturity in 2011, asserting that... Read More

February 09, 2017

When I was president of the Philippine Stock Exchange, I pushed for the enactment of several laws, which were meant to boost the economy and develop our capital markets. These bills, authored by the Angara father-and-son tandem in Congress, are now part of the law of the land. Among these were the Personal Retirement Account Act under RA 9505 (Peraa), Real Estate Investment Trust Act under RA... Read More

January 30, 2017

The controversy on the Social Security System (SSS) pension hike highlights the predicament that many retired pensioners face: the struggle to make do with so little in exchange for paying so much. The amount of the  retirement benefits simply could not catch  up with the rising cost of living. The initial increase of P1,000 per month in pension mandated by President Duterte, albeit... Read More

December 15, 2016

As we close the calendar year, many organizations run through the annual twin rituals of self-examination and planning.  For organizations which follow the calendar year as their fiscal year, this is a time for reflection—of the year that has passed, judging success (or the lack thereof) based on pre-agreed metrics, and planning for the new year.   In business management, we... Read More

November 17, 2016

If a micro, small or medium enterprise (MSME) runs into a financial problem, is there a mechanism that it can use to get back on its feet?   The question is important because MSMEs play an important role in our economy.  Based on the 2014 data of the Philippine Statistics Authority, MSMEs accounted for 99.6 percent of total registered enterprises, employing millions of... Read More

November 03, 2016

(Last of four parts)   If you are a credit card holder but find it difficult  to pay your credit card liabilities as they fall due, is it the end of the world for you?   Absolutely not.   Not known to everybody, the Financial Rehabilitation and Insolvency Act (FRIA) has a special remedy for debtors under this situation.   The original... Read More

October 06, 2016

In its first-ever press conference last week, the Philippine Competition Commission (PCC) announced it “is now investigating the power and cement industries.” “We intend to exercise our enforcement powers in a way that is envisioned under the law, which is a muscular agency, not a paper-pushing, rubber-stamping agency,” said PCC Commissioner El Cid Butuyan.   The Cement... Read More

September 08, 2016

In a merger or acquisition (M&A) where a company purchases either the assets or shares of stock  of a competing company, the buyer usually insists the inclusion of  a non-compete clause that prohibits  the seller  from engaging in any business that competes with the buyer.   A question that has arisen is whether the clause is still valid in the light of the... Read More

July 21, 2016

Second of four parts   Based on the Financial Liquidation and Suspension of Payments Rules of Procedure for Insolvent Debtors (FLSP Rules), any transaction prior to the issuance of a liquidation order or conversion of rehabilitation proceedings to liquidation proceedings entered into by the debtor company involving its assets may be rescinded or declared void. This is... Read More

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