Mr. Virgilio Calumpang
SEC Opinion • Securities and Exchange Commission • Opinions • Dec 9, 1981
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December 9, 1981 Mr. Virgilio Calumpang Manager Dumaguete City Development Bank, Inc. Dumaguete City Sir : In your letter to this Commission dated December 3, 1981, you wish to know whether or not that corporation must keep intact the additional funds paid-in by the stockholders in connection with the proposed increase in capital stock pending its verification and subsequent approval by the Commission. Please be informed that it is the policy of this Commission to allow the use of said funds purely for business operations provided that the disbursement of the funds be duly accounted for or recorded in the books of the corporation and, provided, further that no loans or cash advances be extended to any of the subscribers to the proposed increase in capital stock. Please be guided accordingly. Very truly yours, (SGD.) CORAZON I. MORANDO Officer-in-Charge Corporate and Legal Department
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