1 month SEC approval on cash and/or stock dividend declaration Manilatimes |Biz
KELVIN LESTER LEECan an unlisted corporation validly issue cash and stock dividends to its stockholders without prior approval of the Securities and Exchange Commission (SEC)? The issuance of cash and stock dividends is a matter within the business judgment of the corporation. More so, it does not even require the prior approval of the Commission. However, a corporation needs to comply with the following requirements under Paragraph 1, Section 42 of the Revised Corporation Code (RCC), which provides that: “The Board of Directors of a stock corporation may declare dividends out of the unrestricted retained earnings which shall be ... more