When forming a domestic corporation in the Philippines, bear in mind that the Securities and Exchange Commission (SEC) is the government agency tasked with the implementation of registration requirements for domestic corporations. Accordingly, allow me to share you some tips in forming a domestic corporation:
a) Choose your corporate name beforehand. Please bear in mind that you cannot use a corporate name which is similar or confusingly similar from other corporations that are already existing and registered at the SEC. In thinking of a company name, the words "Inc.", "Incorporated," "Corp.", and "Corporation" are phrases that must be attached or included to your proposed corporate name. In addition, you must be ready for at least 6 choices of corporate names so that you will not have a difficult time falling in line when reserving your corporate business name for purposes of registration.
b) The following are the documentation requirements for purposes of registration as of this posting:
Reservation of Corporate Name Confirmation;
Articles of Incorporation with undertaking by the incorporators to change the corporate name immediately upon receipt of notice or directive from the SEC that another corporation, partnership or person has acquired a prior right to the use of that name, or that name has been declared misleading, deceptive, confusingly similar to a registered name, or contrary to morals, good customs or public policy;
By-laws;
Treasurer’s Affidavit;
Certificate of Bank Deposit of the paid-up capital of the corporation.
c) In devising the articles of incorporation, please be reminded that of the authorized capital stock to be declared, 25% of the authorized capital stock must be subscribed by the incorporators and 25% of the subscribed capital stock must be paid, in which case, the total paid-up capital must not be less than P5,000.00.
d) The following are the prescribed contents of the articles of incorporation as mandated by the Corporation Code and as per directive of the Securities and Exchange Commission:
Primary purpose of the corporation;
Place where the principal office of the corporation is to be located;
Name, nationality, Tax Identification number and residence of the incorporators. Under the Corporation Code, the incorporators must consist of at least five but not more than 15 natural persons, of legal age, and majority of whom must be residents of the Philippines as stated in the articles of incorporation;
The number of shares subscribed by each incorporator. It is a legal requirement that each incorporator must have a subscribed share of the capital stock of the corporation, not necessarily paid;
The total amount of paid up capital from the subscribed capital stock;
The designated Treasurer of the Corporation.
e) In devising the By-laws of the corporation, the same must be executed at the principal office where the corporation is to be located.
f) The treasurer's affidavit signifies a sworn statement by the designated Treasurer of the Corporation that: (i) he or she has been elected by the subscribers as the treasurer of the corporation, and shall act as such until a successor has been duly elected and qualified in accordance with the by-laws of the corporation; (ii) he or she is subscribing under oath that at least 25% of the authorized capital stock of the corporation is subscribed, 25% of the subscribed capital stock has been paid for the benefit and credit of the corporation; (iii) he or she authorizes the Securities and Exchange Commission and Bangko Sentral ng Pilipinas to examine and verify the bank deposit acccount in his/her name as Treasurer-In-Trust for the Corporation which represents the paid up capital of the corporation; (iv) he or she authorizes the SEC to examine the pertinent books and records of accounts of the corporation as well as supporting papers to determine the utilization and disbursement of the said paid-up capital; (v) he or she waives the right of the corporation to a notice and hearing in the revocation of the Certificate of Incorporation of the Corporation in case the said paid-up capital is not deposited or withdrawn prior to the approval of the articles of incorporation.
g) The articles of incorporation, Treasurer's Affidavit and Certificate of Bank Deposit must be subscribed before a notary public. In addition, the articles of incorporation must be signed by at least two instrumental witnesses who must not be designated incorporators of the corporation.
h) The Stock and Transfer Book of the Corporation must be registered at the Securities and Exchange Commission within one month from the time a Certificate of Incorporation has been issued by the SEC.
For more information visit the website of the Securities and Exchange Commission.
Tuesday, February 8, 2011
Tuesday, February 1, 2011
What is meant by the term "constructive dismissal"
Constructive dismissal or a constructive discharge has been defined as quitting because continued employment is rendered impossible, unreasonable or unlikely, as an offer involving a demotion in rank and a diminution in pay. (See Philippine Industrial Security Agency Corporation vs. Virgilio Dapiton et al., G.R. No. 127421 December 8, 1999). Constructive dismissal may also occur when there is an act of clear discrimination, insensibility, or disdain by an employer so unbearable on the part of the employee so as to foreclose any choice on his part except to resign from such employment (See Soliman Security Services Inc. et al. vs. The Court of Appeals et al., G.R. 143215 July 11, 2002).
As held in the case of Siemens Philippines Incorporated et al. vs. Enrico Domingo et al., G.R. 150488 July 28, 2008, the gauge for constructive dismissal is whether a reasonable person in the employee's position would feel compelled to give up his employment under the prevailing circumstances. It may exist when the resignation on the part of the employee was involuntary due to the harsh, hostile and unfavorable conditions set by the employer. An employee who is forced to surrender his position through the employer's unfair or unreasonable acts is deemed to have been illegally terminated and such termination is deemed to be involuntary.
The following are instances which constitute constructive dismissal:
1) Diminution of pay is prejudicial to the employee and amounts to constructive dismissal;
2) Where the transfer involves demotion of rank or a diminution of salary and other benefits;
3) Ordering the employee to take a leave and transfer by reason of company financial losses, and upon the employee's return to work, he was not allowed to enter the company premises;
4) Failing to pay wages due;
5) Putting managers into excessively difficult work situations without supporting their decisions.
6) Harassment or humiliation particularly in front of less senior staff;
7) Victimization of the staff member;
8) Unilaterally changing the employee's job content or terms of employment;
9) Significantly changing the employee's job location at short notice;
10) Falsely accusing an employee of misconduct or of not being capable of carrying out their job;
11) Undue demotion or disciplinary procedures;
12) Sabotage of employee's work product either directly or indirectly with repeated interruption, confusing or inaccurate direction, or uncommunicated deadline changes;
13) Vandalizing the employee's workplace, home, or other personal property. Such tactics could range from minor destruction of immaterial items to more severe acts of vandalism.
14) Forced attendance of a social event against the employee's wishes;
15) Forced resignation;
As held in the case of Siemens Philippines Incorporated et al. vs. Enrico Domingo et al., G.R. 150488 July 28, 2008, the gauge for constructive dismissal is whether a reasonable person in the employee's position would feel compelled to give up his employment under the prevailing circumstances. It may exist when the resignation on the part of the employee was involuntary due to the harsh, hostile and unfavorable conditions set by the employer. An employee who is forced to surrender his position through the employer's unfair or unreasonable acts is deemed to have been illegally terminated and such termination is deemed to be involuntary.
The following are instances which constitute constructive dismissal:
1) Diminution of pay is prejudicial to the employee and amounts to constructive dismissal;
2) Where the transfer involves demotion of rank or a diminution of salary and other benefits;
3) Ordering the employee to take a leave and transfer by reason of company financial losses, and upon the employee's return to work, he was not allowed to enter the company premises;
4) Failing to pay wages due;
5) Putting managers into excessively difficult work situations without supporting their decisions.
6) Harassment or humiliation particularly in front of less senior staff;
7) Victimization of the staff member;
8) Unilaterally changing the employee's job content or terms of employment;
9) Significantly changing the employee's job location at short notice;
10) Falsely accusing an employee of misconduct or of not being capable of carrying out their job;
11) Undue demotion or disciplinary procedures;
12) Sabotage of employee's work product either directly or indirectly with repeated interruption, confusing or inaccurate direction, or uncommunicated deadline changes;
13) Vandalizing the employee's workplace, home, or other personal property. Such tactics could range from minor destruction of immaterial items to more severe acts of vandalism.
14) Forced attendance of a social event against the employee's wishes;
15) Forced resignation;
The Need to Study Philippine Tourism Laws
In one way or another, there has been a moment that in one part of our lives, we became travelers or tourists. That is why I write this article on the need for studying tourism laws because this will definitely benefit you, in one way or another. Before we proceed, we have to discuss the concept of Tourism Law.
Tourism law may be defined as a body of rules or principles of action which deals with the regulation, authority, relations and obedience among members of a society involved in tourist travel and accommodation. It includes persons traveling from place to place for pleasure (tourist), and business establishments or persons engaged in the occupation of providing various services for tourists.
The Philippines is governed by many statutes, administrative orders, judicial decisions, rules and regulations. It is imperative to take a closer look on these which affect our tourism industry. The growth and development of the tourism industry is imperative in the context of regional and countryside development. It generates employment, trade and business opportunities. It also promotes strong backward and forward linkages with other industries such as transport, real estate and property development-- hotels/resorts, gift shops, restaurants, jewelry, and construction among others.
Consider the following situations where tourism laws should have been very handy, without which our country or the world would have been a better place to live.
TERRORISM. We will not forget what happened during the December 30, 2000 Light Railway terrorist attack, also known as the Rizal Day Attack where many have died and one hundred victims injured. These victims’ only concern was to avail of the enjoyment of traveling from one place to another through the convenience of the Light Railway Transit, one of the fastest transportation vehicle in Metro Manila. Would it have made a difference if the LRT management strictly followed security measures in order to deter such attacks?
Let us not also forget the recent news where a Newman Goldliner air-conditioned bus traveling in Makati City exploded on January 25, 2011, where it was confirmed that 4 people were killed, and 14 others wounded. What do you think should have been the security measures that the bus company would have done to prevent such attack? Which government agency would have been responsible so that the same incident would not happen again or at least be minimized?
THE OIL SPILL IN THE GUIMARAS ISLANDS. The oil tanker M/T Solar I, carrying more than two million liters of bunker fuel, sank on August 11, 2006 at the Guimaras Strait off the coast of the Guimaras and Negros Occidental provinces, causing some 500,000 liters of oil to pour into the strait. Such oil spill has now adversely affected marine sanctuaries and mangrove reserves in three out of five municipalities in Guimaras Island. Feeding and reproduction in these grounds are also hindered and these organisms became susceptible to diseases. Its effects on corals are swollen tissues, excessive production of mucus and tissue degeneration. For marine birds and mammals, such as whales and dolphins, their insulation and buoyancy are affected since their feathers and fur become matted and soaked with oil. Definitely, the oil spill in the Guimaras Islands has made news all over the world, not to mention in the Philippine Tourism industry. Allegations have been made stating that the tanker only had a capacity of 1.2 million, implying the possibility of overloading. Other investigations have claimed that the captain of the ship has no capacity to manage it. Would it have made a difference if tourism laws were taken more seriously in order to prevent such devastating incident?
THE 2007 GLORIETTA EXPLOSION. This occurred in the Glorietta 2 section at Ayala Center in Makati, Metro Manila on October 19 2007. The blast killed eleven and injured at least 126 persons. The most probable cause, according to authorities, was the accumulation of methane gas in the building's septic tanks, as well as other combustible materials in its basement. Authorities, however, are not ruling out the possibility of a terrorist attack and are still investigating the incident to discover the true cause of the explosion. Whether or not it is caused by an accident or terrorist attack, tourism laws also play a vital role in assessing liabilities and responsibilities of the government and the management of Glorietta 2.
Finally, let us look at the devastation that is caused by typhoons and tsunamis. Recently, typhoon “Frank” ravaged the central and southern Philippines leaving 155 people dead, 27 missing and at least 1 billion pesos worth of damaged infrastructure. In addition, the sinking of the MV Princess of the Star made the Philippine Coast Guard and the owners of Sulpicio Lines in a very bad light. Whoever is responsible for the death and injury of the passengers in MV Princess of the Star, you cannot however remove the fact that tourism laws still play a vital part in assessing the responsibilities and liabilities, not only the ship captain and owner of the MV Princess of the Star, but also the proper government agency.
Today, society has evolved wherein business establishments engaged in tourism have been in the food service, hotel service, transportation service, travel and tour operations, events management and even medical tourism, among others, all for the interest of gratification, happiness, amusement, entertainment, safety and security of people traveling from place to place. E-commerce has now been considered a way of necessity to do business in tourism.
All things being considered, it will not be denied that there are now various or even millions of commercial transactions involved in tourism. In addition, numerous regulations are being imposed by the different government agencies in order to promote tourism development for national interest, security and safety. Hence, there is a need to study the different principles and statutes governing tourism development.
So, why is there a need to study tourism laws? These are the four reasons:
First, it protects the rights of travelers and tourism workers. Every Filipino has at least experienced becoming a traveler in one part of his life. It would be worthwhile to take a closer look on the different statutes governing these rights.
Second, to preserve tourism resources where future generations can enjoy. We know that as responsible Filipinos, we can be instrumental in being part of this endeavor of preserving tourism resources such as our infrastructure, natural and human resources, museums, art collections, etc. so that our children, grand children, great grand children, great great grandchildren would be happy and delighted to enjoy them.
Third, to provide better tourism services. I have been working with practitioners, entrepreneurs and businessmen in the tourism industry. And one thing I have observed is that they have this mission of providing excellent service to the Filipino people. I admit, our country is not perfect..... We all have our differences. But at least tourism laws will provide a strong foundation of improving tourism services to enhance our Filipino values and culture.
Lastly, to promote growth of the tourism industry. In this regard, tourism laws will be instrumental in helping our government generate income for our country’s survival and growth so that we can compete in a global economy.
In the long run, once we realize the need for studying tourism laws, tourism activities and infrastructure will be managed well, and customers like us will be very much satisfied.
So, always remember that to be an outstanding tourism professional, you must be a law-abiding citizen and I encourage you to study tourism laws to gain competitive advantage.
Philippine Tourism Laws by Cabulay and Carpio
Tourism law may be defined as a body of rules or principles of action which deals with the regulation, authority, relations and obedience among members of a society involved in tourist travel and accommodation. It includes persons traveling from place to place for pleasure (tourist), and business establishments or persons engaged in the occupation of providing various services for tourists.
The Philippines is governed by many statutes, administrative orders, judicial decisions, rules and regulations. It is imperative to take a closer look on these which affect our tourism industry. The growth and development of the tourism industry is imperative in the context of regional and countryside development. It generates employment, trade and business opportunities. It also promotes strong backward and forward linkages with other industries such as transport, real estate and property development-- hotels/resorts, gift shops, restaurants, jewelry, and construction among others.
Consider the following situations where tourism laws should have been very handy, without which our country or the world would have been a better place to live.
TERRORISM. We will not forget what happened during the December 30, 2000 Light Railway terrorist attack, also known as the Rizal Day Attack where many have died and one hundred victims injured. These victims’ only concern was to avail of the enjoyment of traveling from one place to another through the convenience of the Light Railway Transit, one of the fastest transportation vehicle in Metro Manila. Would it have made a difference if the LRT management strictly followed security measures in order to deter such attacks?
Let us not also forget the recent news where a Newman Goldliner air-conditioned bus traveling in Makati City exploded on January 25, 2011, where it was confirmed that 4 people were killed, and 14 others wounded. What do you think should have been the security measures that the bus company would have done to prevent such attack? Which government agency would have been responsible so that the same incident would not happen again or at least be minimized?
THE OIL SPILL IN THE GUIMARAS ISLANDS. The oil tanker M/T Solar I, carrying more than two million liters of bunker fuel, sank on August 11, 2006 at the Guimaras Strait off the coast of the Guimaras and Negros Occidental provinces, causing some 500,000 liters of oil to pour into the strait. Such oil spill has now adversely affected marine sanctuaries and mangrove reserves in three out of five municipalities in Guimaras Island. Feeding and reproduction in these grounds are also hindered and these organisms became susceptible to diseases. Its effects on corals are swollen tissues, excessive production of mucus and tissue degeneration. For marine birds and mammals, such as whales and dolphins, their insulation and buoyancy are affected since their feathers and fur become matted and soaked with oil. Definitely, the oil spill in the Guimaras Islands has made news all over the world, not to mention in the Philippine Tourism industry. Allegations have been made stating that the tanker only had a capacity of 1.2 million, implying the possibility of overloading. Other investigations have claimed that the captain of the ship has no capacity to manage it. Would it have made a difference if tourism laws were taken more seriously in order to prevent such devastating incident?
THE 2007 GLORIETTA EXPLOSION. This occurred in the Glorietta 2 section at Ayala Center in Makati, Metro Manila on October 19 2007. The blast killed eleven and injured at least 126 persons. The most probable cause, according to authorities, was the accumulation of methane gas in the building's septic tanks, as well as other combustible materials in its basement. Authorities, however, are not ruling out the possibility of a terrorist attack and are still investigating the incident to discover the true cause of the explosion. Whether or not it is caused by an accident or terrorist attack, tourism laws also play a vital role in assessing liabilities and responsibilities of the government and the management of Glorietta 2.
Finally, let us look at the devastation that is caused by typhoons and tsunamis. Recently, typhoon “Frank” ravaged the central and southern Philippines leaving 155 people dead, 27 missing and at least 1 billion pesos worth of damaged infrastructure. In addition, the sinking of the MV Princess of the Star made the Philippine Coast Guard and the owners of Sulpicio Lines in a very bad light. Whoever is responsible for the death and injury of the passengers in MV Princess of the Star, you cannot however remove the fact that tourism laws still play a vital part in assessing the responsibilities and liabilities, not only the ship captain and owner of the MV Princess of the Star, but also the proper government agency.
Today, society has evolved wherein business establishments engaged in tourism have been in the food service, hotel service, transportation service, travel and tour operations, events management and even medical tourism, among others, all for the interest of gratification, happiness, amusement, entertainment, safety and security of people traveling from place to place. E-commerce has now been considered a way of necessity to do business in tourism.
All things being considered, it will not be denied that there are now various or even millions of commercial transactions involved in tourism. In addition, numerous regulations are being imposed by the different government agencies in order to promote tourism development for national interest, security and safety. Hence, there is a need to study the different principles and statutes governing tourism development.
So, why is there a need to study tourism laws? These are the four reasons:
First, it protects the rights of travelers and tourism workers. Every Filipino has at least experienced becoming a traveler in one part of his life. It would be worthwhile to take a closer look on the different statutes governing these rights.
Second, to preserve tourism resources where future generations can enjoy. We know that as responsible Filipinos, we can be instrumental in being part of this endeavor of preserving tourism resources such as our infrastructure, natural and human resources, museums, art collections, etc. so that our children, grand children, great grand children, great great grandchildren would be happy and delighted to enjoy them.
Third, to provide better tourism services. I have been working with practitioners, entrepreneurs and businessmen in the tourism industry. And one thing I have observed is that they have this mission of providing excellent service to the Filipino people. I admit, our country is not perfect..... We all have our differences. But at least tourism laws will provide a strong foundation of improving tourism services to enhance our Filipino values and culture.
Lastly, to promote growth of the tourism industry. In this regard, tourism laws will be instrumental in helping our government generate income for our country’s survival and growth so that we can compete in a global economy.
In the long run, once we realize the need for studying tourism laws, tourism activities and infrastructure will be managed well, and customers like us will be very much satisfied.
So, always remember that to be an outstanding tourism professional, you must be a law-abiding citizen and I encourage you to study tourism laws to gain competitive advantage.
Philippine Tourism Laws by Cabulay and Carpio
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