Re: Condonation of Subscriptions Receivables or Cancellation of Subscriptions

October 11, 2019SEC-OGC OPINION NO. 50-19RE: CONDONATION OF SUBSCRIPTIONS RECEIVABLES OR CANCELLATION OF SUBSCRIPTIONSTan Venturanza Valdez2704 East Tower, Philippine Stock Exchange CentreExchange Road, Ortigas Center1605 Pasig City, Metro ManilaAttention: Atty. Jason C. NaluptaAtty. Ann Margaret K. LorenzoAttorneys :This refers to your letter dated 23 June 2016, filed before the Office of the General Counsel, on behalf of your client, Philippine Realty and Holdings Corporation (PRHC), requesting for a legal opinion on whether the corporation has the power under the Corporation Code, or any other law, to condone subscriptions receivables due or to partially cancel the subscriptions of its stockholders. In said letter, you represented that PRHC is a company whose common shares have been listed with the Philippine Stock Exchange since 1988. On 9 February 2016, this Commission approved PRHC's equity restructuring wherein the par value of the latter's shares were reduced from One Peso (Php1.00) to Fifty Centavos (Php0.50) per share, and thereby, resulting in the increase of PRHC's additional paid-in capital (APIC) which was used to eliminate the corporation's deficit. 1 You also...