Ms. Corazon M. Bejasa
SEC Opinion • Securities and Exchange Commission • Opinions • Jun 22, 1995
Full text
June 22, 1995 Ms. Corazon M. Bejasa And Atty. Ma. Jennifer S. Tria Urban Bank Urban Bank Center, Urban Ave., Makati, Metro Manila Madam: This refers to your letter of June 9, 1995 requesting opinion on the legality of the proposed amendment of the articles of incorporation of Urbanbank Realty Developers, Inc. changing the par value of its common shares from P1.00 to P2.00 per share. The power of the corporation to make changes in the articles of incorporation is sanctioned under Section 36(4) of the Corporation Code. Accordingly, the above proposal is allowable, subject however to compliance with the procedural and documentary requirements under Section 16 of the Corporation Code relative to amendments of articles of incorporation, and if the par value per share would be increased without decreasing the existing number of shares, Section 38 of the Corporation Code shall also be complied with since there would be a corresponding increase in the total amount of the authorized capital stock. However, if there is a corresponding decrease in the number of shares and the total peso amount of the authorized capital stock would remain the same, mere amendment of the Articles of Incorporation will suffice. Please be guided accordingly. cdlex Very truly yours, (SGD.) SONIA M. BALLO Director Corporate and Legal Department
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