Rules Regulating the Issuance of Property Dividends

June 9, 1992RULES REGULATING THE ISSUANCE OF PROPERTY DIVIDENDSPursuant to the authority vested in this Commission as provided for under Section 143 of the Corporation Code of the Philippines and in order to protect the interest of stockholders and creditors in stock corporations, the following rules regulating the issuance of property dividends are hereby promulgated. LexLibSECTION 1. All corporations that have declared and/or issued property dividends in accordance with the provisions of the Corporation Code of the Philippines shall send notice of such dividends within thirty (30) days from the date of the declaration thereof.The notice of the declaration and/or issuance of the property dividends shall show, in scheduled form, the nature of property declared as dividends, their individual book values and market values, if any, and the manner in which such property are distributed to the stockholders.SECTION 2. The issuance of the property dividends shall conform with the following conditions:a) That the property to be distributed as dividends shall consist only of property which are no longer intended to be used in the operation...