The topics below may be relevant to your daily activities, especially those which involve business law, labor law, and other legal areas of your business.
Business Law and Labor Law Updates
Settling the Estate Tax of a Deceased Stockholder
The transfer of the deceased stockholder’s shares and issuance of new stock certificates to his or her heirs may be done judicially (through court proceedings) or extra-judicially (out-of-court settlement). However, prior to the transfer of such shares of stocks in favor of his or her heirs or any transferee, the estate shall first pay the estate tax due.
Estate Tax is a tax on the right of the deceased person to transmit his/her estate to his/her lawful heirs and beneficiaries at the time of death and on certain transfers, which are made by law as equivalent to testamentary disposition. It is not a tax on property. It is a tax imposed on the privilege of transmitting property upon the death of the owner.
WHAT IS NON-DIMINUTION OF BENEFITS?
The concept of Non-diminution of benefits could be anchored on two points. First is Art. 127 of the Labor Code of the Philippines, as amended. The said article is stated in the following manner:
“Art. 127. Non-diminution of benefits. No wage order issued by any regional board shall provide for wage rates lower than the statutory minimum wage rates prescribed by Congress. (As amended by Republic Act No. 6727, June 9, 1989)”
MAY A DIRECTOR OF A STOCK CORPORATION BE REMOVED FROM OFFICE?
Yes!
Section 27 of the Revised Corporation Code is very explicit. Said section governs the procedure for removing a director.
A director of a corporation may be removed form office by a vote of the stockholders holding or representing at least two-thirds (2/3) of the outstanding capital stock. The removal should take place either at a regular meeting of the corporation or at a special meeting called for the purpose. In either case, stockholders of the corporation must have been properly notified of the intention to propose a removal of a director at the meeting. A special meeting of the stockholders for the said purpose must be called by the secretary or on the order of the president or upon written demand of the stockholders representing at least a majority of the outstanding capital stock. If there is no secretary, or if the secretary, despite demand, fails or refuses to call the special meeting or to give notice thereof, the stockholder of the corporation signing the demand may call for the meeting by directly addressing the stockholders. This time, the notice of the time and place of such meeting, as well as of the intention to propose such removal, must be given by publication or by written notice. Removal of a director may be with or without cause.
IS A PART-TIME WORKER ENTITLED TO A HOLIDAY PAY?
YES!
The International Labor Organization “ILO” defines “part-time work” as “single, regular or voluntary form of employment with hours substantially shorter than those considered as normal in the establishment.” Under the Labor Code of the Philippines, the normal working hours equals to eight (8) hours a day. Like the regular employees, part-time workers are entitled to the provisions of the Labor Code of the Philippines such as Holiday pay, overtime, premium, 13th month pay, service incentive leave and benefits upon retirement.
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