The Corporation Code of the Philippines provides various methods for corporations to close up shop if they feel the need to start anew.
- Voluntary Dissolution
- Where no creditors will be affected – The ideal option for shutting down operations, provided that the corporation’s dissolution will not prejudice any creditors who may have claims against it;
- Where creditors will be affected – The standard option for dissolution, where the corporation still has to settle its outstanding debts, and any other liabilities it may have incurred;
- Involuntary Dissolution – Where the corporation is insolvent, its creditors may file a petition before the Securities and Exchange Commission for dissolution and liquidation of the corporation, in accordance with the Financial Rehabilitation and Insolvency Act. There are, however, methods for the corporation to protect its assets and/or continue its existence;
- Quietly Going Away
- Dissolution via Shortening the Term of Existence
Respicio & Co. Law Firm can help you settle your affairs, and determine the best method for you to dissolve and liquidate your corporation, or, if insolvency proceedings have been initiated against you, we can also help you protect and rehabilitate your corporation.
If you are a creditor with outstanding and demandable claims against an insolvent corporation, Respicio & Co. Law Firm can help you pursue and protect your claims.