An act providing for the revised corporation code of the philippines

SEC. 127. Minutes Book. – A One Person Corporation shall maintain a minutes book 
which shall contain all actions, decisions, and resolutions taken by the One Person Corporation. 
SEC. 128. Records in Lieu of Meetings. – When action is needed on any matter, it shall 
be sufficient to prepare a written resolution, signed and dated by the single stockholder, and 
recorded in the minutes book of the One Person Corporation. The date of recording in the minutes 
book shall be deemed to be the date of the meeting for all purposes under this Code. 
SEC. 129. Reportorial Requirements. – The One Person Corporation shall submit the 
following within such period as the Commission may prescribe: 
(a) Annual financial statements audited by an independent certified public accountant: 
Provided, That if the total assets or total liabilities of the corporation are less than Six Hundred 
Thousand Pesos (P600,000.00), the financial statements shall be certified under oath by the 
corporation’s treasurer and president.
(b) A report containing explanations or comments by the president on every qualification, 
reservation, or adverse remark or disclaimer made by the auditor in the latter’s report;
(c) A disclosure of all self-dealings and related party transactions entered into between the 
One Person Corporation and the single stockholder; and 
(d) Other reports as the Commission may require. 
For purposes of this provision, the fiscal year of a One Person Corporation shall be that set 
forth in its articles of incorporation or, in the absence thereof, the calendar year. 
The Commission may place the corporation under delinquent status should the corporation 
fail to submit the reportorial requirements three (3) times, consecutively or intermittently, within 
a period of five (5) years. 
SEC. 130. Liability of Single Shareholder. – A sole shareholder claiming limited liability 
has the burden of affirmatively showing that the corporation was adequately financed.
Where the single stockholder cannot prove that the property of the One Person Corporation 
is independent of the stockholder’s personal property, the stockholder shall be jointly and 
severally liable for the debts and other liabilities of the One Person Corporation. 
The principles of piercing the corporate veil applies with equal force to One Person 
Corporations as with other corporations. 

---

Page 54 of 73