[ Act No. 1895, May 17, 1909 ]
AN ACT TO AMEND SECTION SEVENTEEN OF ACT NUMBERED FOURTEEN HUNDRED AND FIFTY-NINE, ENTITLED "THE CORPORATION LAW," AS AMENDED BY ACT NUMBERED SEVENTEEN HUNDRED AND FORTY-FOUR, SO THAT INCREASE IN CAPITAL STOCK OF CORPORATIONS MAY BE PAID IN CASH OR PROPERTY.
By authority of the United States, be it enacted by the Philippine Legislature, that:
Section 1. Section seventeen of Act Numbered Fourteen hundred and fifty-nine, entitled ''The Corporation Law," is hereby amended to read as follows:
'"Section 17. No corporation shall increase or diminish its capital or capita, stock, or incur, create or increase any bonded indebtedness unless, at a stockholders' meeting regularly called for the purpose, two-thirds of the entire corporate capital stock subscribed shall favor the increase or diminution of the capital stock, or a majority of the subscribed capital stock shall favor the incurring, creating, or increasing of any bonded indebtedness. Written or printed notice in of the proposed notices of meeting of the proposed increase or diminution of the capital stock or of the incurring, creating, or increasing of any bonded indebtedness and of the time and place of the stockholders' meeting at which the Proposed increase or diminution of the capital stock or the incurring, creating, Or increasing of any bonded indebtedness is to be considered must be addressed to cacth stockholder at his place of residence as shown by the books of the corporation and registered and deposited so addressed in the post-office with postage prepaid.
"A certificate in duplicate must be signed by a majority of the directors of the corporation and countersigned by the chairman and secretary of the stockholders' meeting, setting forth :
"(a) That the requirements of this section have been complied with.
"(b) The amount of the increase1 or diminution of the capital stock.
"(c) If an increase of the capital stock, the amount thereof actually subscribed, the names and residences of the persons subscribing, the amount subscribed by each, and the amount paid by each on his subscription in cash or properly.
"(d) Any bonded indebtedness to be created, incurred, or increased.
"(e) The actual indebtedness of the corporation on the day of the meeting.
"(f) The amount of stock represented at the meeting.1aшphi1
"(g) The vote authorizing the increasing or diminution of the capital stock, or the incurring, creating, or increasing of any bonded indebtedness.
"One of the duplicate certificates shall be kept on file in the office of the corporation and the other shall be tiled in the office of the chief of the division of archives, patents, copyrights, and trade-marks of the Executive Bureau and attached by him to the original articles of incorporation. From and after the filing of the duplicate certificate with the chief of the said division the capital stock shall stand increased or diminished and the incurring, creating, or increasing of any bonded indebtedness authorized as the certificate may declare.
"The chief of the said division of archives, patents, copyrights, and trade-marks shall be entitled to collect the sum of twenty pesos for the filing of said duplicate certificate: Provided, however, That if the said duplicate certificate increases the amount of capital stock, the chief of the said division of archives, patents, copyrights, and trade-marks shall not file such certificate unless accompanied by the sworn statement of the treasurer of the corporation lawfully holding office at the time of the filing of the certificate1, showing that at least twenty per centum of such increased capital stock has been subscribed and that at least twenty-five per centum of the amount subscribed has been either paid in actual cash to the corporation or that there has been transferred to the corporation property the fair valuation of which is equal to twenty-five per centum of the subscription."
Section 2. This Act shall take effect on its passage.
Enacted, May 17, 1909.
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