July 24, 2017
SEC-OGC OPINION NO. 06-17
RE: EQUITY RESTRUCTURING THROUGH THE INCREASE OF PAR VALUE
New Transcend Construction & Development Corporation
Unit 309 Humana Wellness Center
Tagaytay Road, Brgy. Don Jose
Sta. Rosa, Laguna 4026
Attention: Atty. Anna P. Cureg
Vice-President
Gentlemen :
This refers to your letter dated 19 September 2016 requesting for a legal opinion regarding the intended equity restructuring of your company.
In your letter, you mentioned that you intend to amend your company's Articles of Incorporation (Articles) to increase the par value of each share from P10.00 to P50.00, without increasing the present number of shares. In addition, you disclosed that your company's authorized capital stock (ACS) is fully subscribed and fully paid up. On the basis of the foregoing, you sought clarification on the following matters:
(a) The requirements for the above application;
(b) The processes involved in the equity restructuring that will result after the increase in par value; and
(c) The laws and/or jurisprudence applicable to your case.
At the outset, we note that, although you mentioned that your company does not intend to increase the present number of shares, you...
