AN ACT TO FURTHER AMEND SECTION ONE HUNDRED AND NINETY-SIX OF THE INSURANCE LAW

REPUBLIC ACT No. 1932

AN ACT TO FURTHER AMEND SECTION ONE HUNDRED AND NINETY-SIX OF THE INSURANCE LAW, ACT NUMBERED TWO THOUSAND FOUR HUNDRED AND TWENTY-SEVEN, AS AMENDED.

Section 1. Section one hundred and ninety-six of Act Numbered Two thousand four hundred and twenty-seven, as amended, otherwise known as the Insurance Law, is hereby further amended so as to read as follows:

"Sec. 196. Any provision of law to the contrary notwithstanding, every domestic life insurance corporation, formed for a limited period under the provisions of its articles of incorporation, may extend its corporate existence for a period not exceeding fifty years in any one instance by amendment to its articles of incorporation on or before the expiration of the term so fixed in said articles: Provided, however, That such an amendment shall require the affirmative vote of stockholders holding at least two-thirds of the subscribed capital stock at a stockholders' meeting called for the purpose. Any stockholder who did not vote for such an amendment may, within forty days after the...

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Summary of Republic Act No. 1932

Provisions for Extension of Corporate Existence of Domestic Life Insurance Corporations

- Allows domestic life insurance corporations formed for a limited period to extend their corporate existence for up to 50 years at a time by amending their articles of incorporation. (Section 1)
- The amendment requires an affirmative vote of at least two-thirds of the subscribed capital stock at a stockholders' meeting called for this purpose. (Section 1)
- Dissenting stockholders who did not vote for the amendment can object within 40 days and demand payment for their shares. (Section 1)
- If the corporation and the stockholder cannot agree on the share value, it will be determined by three disinterested appraisers: one appointed by the stockholders, one by the corporation, and the third by the two appointed appraisers. (Section 1)
- The appraiser's finding is final, and if not paid by the corporation within 30 days, the stockholder can recover the amount plus damages and attorney's fees through legal action. (Section 1)
- Upon payment, the stockholder must transfer and assign the shares as directed by the corporation. (Section 1)
- The Securities and Exchange Commission will collect the same fees for filing the amended articles as for filing new articles of incorporation. (Section 1)
- No domestic insurance corporation can adopt the name of an existing company in a similar business or a misleading name. (Section 1)