An act providing for the revised corporation code of the philippines

SEC. 36. Power to Extend or Shorten Corporate Term. – A private corporation may extend 
or shorten its term as stated in the articles of incorporation when approved by a majority vote of 
the board of directors or trustees, and ratified at a meeting by the stockholders or members 
representing at least two-thirds (2/3) of the outstanding capital stock or of its members. Written 
notice of the proposed action and the time and place of the meeting shall be sent to stockholders 
or members at their respective place of residence as shown in the books of the corporation, and 
must either be deposited to the addressee in the post office with postage prepaid, served personally, 
or when allowed in the bylaws or done with the consent of the stockholder, sent electronically in 
accordance with the rules and regulations of the Commission on the use of electronic data 
messages. In case of extension of corporate term, a dissenting stockholder may exercise the right 
of appraisal under the conditions provided in this Code. 
SEC. 37. Power to Increase or Decrease Capital Stock; Incur, Create or Increase Bonded 
Indebtedness. – No corporation shall increase or decrease its capital stock or incur, create or 
increase any bonded indebtedness unless approved by a majority vote of the board of directors and 
by two-thirds (2/3) of the outstanding capital stock at a stockholders’ meeting duly called for the 
purpose. Written notice of the time and place of the stockholders’ meeting and the purpose for said 
meeting must be sent to the stockholders at their places of residence as shown in the books of the 
corporation and served on the stockholders personally, or through electronic means recognized in 
the corporation’s bylaws and/or the Commission’s rules as a valid mode for service of notices. 
A certificate must be signed by a majority of the directors of the corporation and 
countersigned by the chairperson and secretary of the stockholders’ meeting, setting forth: 
(a) That the requirements of this section have been complied with;
(b) The amount of the increase or decrease of the capital stock;

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(c) In case of an increase of the capital stock, the amount of capital stock or number of shares 
of no-par stock thereof actually subscribed, the names, nationalities and addresses of the persons 
subscribing, the amount of capital stock or number of no-par stock subscribed by each, and the 
amount paid by each on the subscription in cash or property, or the amount of capital stock or 
number of shares of no-par stock allotted to each stockholder if such increase is for the purpose of 
making effective stock dividend therefor authorized;
(d) Any bonded indebtedness to be incurred, created or increased;
(e) The amount of stock represented at the meeting; and
(f) The vote authorizing the increase or decrease of the capital stock, or the incurring, 
creating or increasing of any bonded indebtedness.
Any increase or decrease in the capital stock or the incurring, creating or increasing of any 
bonded indebtedness shall require prior approval of the Commission, and where appropriate, of 
the Philippine Competition Commission. The application with the Commission shall be made 
within six (6) months from the date of approval of the board of directors and stockholders, which 
period may be extended for justifiable reasons. 
Copies of the certificate shall be kept on file in the office of the corporation and filed with 
the Commission and attached to the original articles of incorporation. After approval by the 
Commission and the issuance by the Commission of its certificate of filing, the capital stock shall 
be deemed increased or decreased and the incurring, creating or increasing of any bonded 
indebtedness authorized, as the certificate of filing may declare: Provided, That the Commission 
shall not accept for filing any certificate of increase of capital stock unless accompanied by a sworn 
statement of the treasurer of the corporation lawfully holding office at the time of the filing of the 
certificate, showing that at least twenty-five percent (25%) of the increase in capital stock has been 
subscribed and that at least twenty-five percent (25%) of the amount subscribed has been paid in 
actual cash to the corporation or that property, the valuation of which is equal to twenty-five 
percent (25%) of the subscription, has been transferred to the corporation: Provided, further, That 
no decrease in capital stock shall be approved by the Commission if its effect shall prejudice the 
rights of corporate creditors. 
Nonstock corporations may incur, create or increase bonded indebtedness when approved 
by a majority of the board of trustees and of at least two-thirds (2/3) of the members in a meeting 
duly called for the purpose.
Bonds issued by a corporation shall be registered with the Commission, which shall have the 
authority to determine the sufficiency of the terms thereof.