University Physicians' Services, Inc.
SEC Opinion • Securities and Exchange Commission • Opinions • Mar 22, 1988
Full text
March 22, 1988 University Physicians' Services, Inc. 1122 General Luna Street Ermita, Manila Attention : Dir . Jose R . Relacion Sir : This refers to your letter, dated March 11, 1988, requesting for opinion as to whether a stock corporation, which is on deficit, may borrow funds to acquire its own shares as an investment. prcd The pertinent provision of the Corporation Code reads thus: "SECTION 41. Power to acquire own shares . A stock corporation shall have the power to purchase or acquire its own shares for a legitimate corporate purpose or purposes including but not limited to the following cases: Provided, That the corporation has unrestricted retained earnings in its books to cover the shares to be purchased or acquired . xxx xxx xxx". Hence, your query is answered in the negative. Very truly yours, (SGD.) JULIO A. SULIT, JR. Chairman
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