REPUBLIC ACT NO. 5167 - AN ACT TO
AMEND ACT NUMBERED FOURTEEN HUNDRED FIFTY-NINE, OTHERWISE KNOWN AS THE
"CORPORATION LAW" BY AMENDING SUBPARAGRAPH FIVE AND ADDING A NEW
SUBPARAGRAPH FIVE-A, THEREIN
Section 1. Subparagraph five, Section thirteen of Act
Numbered Fourteen hundred fifty-nine, as amended, is further amended to
read as follows:
"(5) To purchase, hold, convey, sell, lease, let,
mortgage, encumber, and otherwise deal with such real and personal
property as the purposes for which the corporation was formed may
permit, and the transaction of the lawful business of the corporation
may reasonably and necessarily require unless otherwise prescribed in
this Act: Provided, That no corporation shall be authorized to conduct
the business of buying and selling public lands or be permitted to hold
or own real estate except such as may be reasonably necessary to enable
it to carry out the purposes for which it is created, and every
corporation authorized to engage in agriculture shall be restricted to
the ownership and control of not to exceed one thousand and twenty-four
hectares of land; and it shall be unlawful for any corporation
organized for the purpose of engaging in agriculture to be in anywise
interested in any other corporation organized for the purpose of
engaging in agriculture; it shall be unlawful for any person owning
stock in more than one corporation organized for the purpose of
engaging in agriculture to own more than fifteen per centum of the
capital stock then outstanding and entitled to vote of each of such
corporations; it shall be unlawful for any corporation to own in excess
of fifteen per centum of the capital stock then outstanding and
entitled to vote of any corporation organized for the purpose of
engaging in agriculture; any stockholder of more than one corporation
organized for the purpose of engaging in agriculture may hold his stock
in such corporations solely for investment and not for the purpose of
bringing about or attempting to bring about a combination to exercise
control of such corporations, or to directly or indirectly violate any
of the provisions of the Public Land Law, and any corporation holding
stock in any corporation organized for the purpose of engaging in
agriculture may hold such stock solely for investment, and not for the
purpose of bringing about or attempting to bring about a combination to
effect control of such corporation, or to directly or indirectly
violate any of the provisions of the Public Land Law. Corporations,
however, may loan funds upon real estate security and purchase real
estate when necessary for the collection of loans but they shall
dispose of real estate so obtained within five years after receiving
the title."
Sec. 2. Subparagraph five Section thirteen of Act
Numbered Fourteen hundred fifty-nine, as amended, is hereby further
amended by adding a new subparagraph 5-A to read as follows:
(5-A) Any domestic or foreign corporation, and its
stockholders organized for the purpose of engaging in mining may
acquire and hold not more than forty per centum of the capital stock
then outstanding and entitled to vote of only one other corporation
organized for the purpose of engaging in mining in the Philippines:
Provided, That it shall likewise be unlawful for said latter
corporation to be in any wise interested in any other corporation
organized for the purpose of engaging in mining: Provided, further,
That the acquisition of up to forty per centum of the outstanding
capital stock in a mining corporation already in commercial production
shall be as follows: not more than fifteen per centum of the
outstanding capital stock and twenty-five per centum through
subscription to unissued shares.
Any domestic or foreign corporation organized for any purpose other
than mining may acquire and hold not more than thirty per centum of the
capital stock then outstanding and entitled to vote of each of not more
than three corporations organized for the purpose of engaging in mining
in the Philippines: Provided, That it shall be unlawful for any
stockholder of such corporation organized for any purpose other than
mining to be a stockholder of any of the said three corporations
organized for the purpose of engaging in mining. It shall be unlawful
for any person owning a stock in more than one corporation organized
for the purpose of engaging in mining to own more than fifteen per
centum, of the capital stock then outstanding and entitled to vote of
each corporation. Any stockholder of more than one corporation
organized for the purpose of engaging in mining may hold his stock in
such corporation solely for investment and not for the purpose of
bringing about or attempting to bring about a combination to exercise
control of such corporation, or to directly or indirectly violate any
of the provisions of the mining and the public land laws. Any
corporation holding stock in any corporation organized for the purpose
of engaging in mining may hold such stock solely for investment, and
not for the purpose of bringing about or attempting to bring about a
combination to exercise control of such corporation, or directly or
indirectly violate any of the provisions of the mining and public land
laws. Any corporation not engaged in mining, who before the approval of
this amendatory Act had investments of not more than fifteen per centum
in each of more than three mining corporations shall be allowed to
keep such holding.
Sec. 3. This Act shall take effect upon its
approval.
Approved:
August 4, 1967
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