The topics below may be relevant to your daily activities, especially those which involve business law, labor law, and other legal areas of your business.
Business Law and Labor Law Updates
VALUATION OF THE SHARES OF STOCKS NOT LISTED AND TRADED IN THE LOCAL STOCK EXCHANGE
For common shares, the Fair Market Value (FMV) shall be the book value based on the latest available audited financial statements (AFS) prior to the date of sale, but not earlier than the immediately preceding taxable year.
- For preferred shares, the FMV shall be the liquidation value, which is equal to the redemption price of the preferred shares as of balance sheet date nearest to the transaction date, including any premium and cumulative preferred dividends in arrears.
- In determining the FMV of the shares, the book value of common shares or the liquidation value of the preferred shares need not be adjusted to include any appraisal surplus from any property of the corporation not reflected or included in the latest AFS.
CORRECTION OF ENTRY IN THE CERTIFICATE OF LIVE BIRTH WITHOUT FILING A CASE IN COURT
Under the old rules, a case must be filed in court for the correction of clerical errors in the Certificate of Live Birth
Clerical or typographical error refers to a mistake committed in the performance of clerical work in writing, copying, transcribing or typing an entry in the civil register
Clerical or typographical errors may now be corrected without filing a case in court
CONTRACT OF LEASE
The contract of lease is an agreement whereby lessor binds himself to grant temporarily the enjoyment or use of a thing or to render some work or service to a lessee who undertakes to pay rent, compensation or price therefor.
The contract of lease may be of things, or of work and service.
The difference between lease and sale is that, in a lease, the lessor transfers merely the temporary possession and enjoyment of the thing leased. In a sale, he seller transfers ownership of the thing sold.
FAILURE TO COMPLY WITH THE PROVISIONS OF THE TRUTH IN LENDING ACT
Any creditor who fails to disclose to any person any information in violation of the Truth in Lending Act shall be liable to such person in the amount of P100 or in an amount equal to twice the finance charged required by such creditor in connection with such transaction, whichever is the greater, except that such liability shall not exceed P2,000 on any credit transaction.
Any person who willfully violates any provision of Truth in LendingAct shall be fined by not less than P1,000 or more than P5,000 or imprisonment for not less than 6 months, nor more than one year or both.
The contract or transactions entered by parties remains valid or enforceable.