Re: Term of License to Do Business of a Foreign Corp.

September 9, 2019SEC-OGC OPINION NO. 33-19RE: TERM OF LICENSE TO DO BUSINESS OF A FOREIGN CORPORATIONRomulo Mabanta BuenaventuraSayoc & De Los Angeles21st Floor, Philamlife Tower8767 Paseo de RoxasMakati City 1226Attention: Atty. Priscilla B. ValerAtty. Roxanne Viel C. SantosDear Attorneys :This refers to your letter dated 8 August 2018 requesting for confirmation of your opinion that the license to do business in the Philippines granted by the Commission to a foreign corporation is co-terminus with the life of the foreign corporation. Your letter states that Pacific Metals Co. Ltd. ("Pacific") is a foreign stock corporation organized and existing under the laws of Japan. It was issued a license to do business in the Philippines ("SEC License") on 23 October 1970.You further stated that, as a general rule, the term of a corporation incorporated under the laws of Japan is perpetual or indefinite unless its Articles of Incorporation expressly provides a specific term. Pacific's Articles of Incorporation did not provide for a definite corporate term, hence, its corporate term is deemed perpetual or indefinite.On the contrary, however,...