Mr. Josefin M. Mendoza
SEC Opinion • Securities and Exchange Commission • Opinions • Nov 26, 2001
Full text
November 26, 2001 SEC OPINION Mr. Josefin M. Mendoza Corporate Secretary Southern Cross Distribution, Inc., 3F Administration Bldg., Duhat Road, FTI Complex, Taguig S i r : This refers to your letter dated November 20, 2001, requesting for opinion on the legality of conversion of leasehold rights into equity. Relative thereto, please be informed that leasehold right which falls under intangible assets is allowed as payment on subscription subject to SEC verification and evaluation. As aptly provided under the Corporation Code of the Philippines: Sec. 62. Consideration for shares of stocks . Stock shall not be issued for a consideration less than the par or issued price thereof. Consideration for the issuance of stock may be any or a combination of any two or more of the following: xxx xxx xxx 2. Property tangible or intangible ,actually received by the corporation and necessary or convenient for its use and lawful purposes at a fair valuation equal to the par or issued value of the stock issued; (Emphasis supplied). xxx xxx xxx (SGD.) BENITO A. CATARAN Director
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