Bits of Law

What can you do with shares of stock in a corporation? Shares of stock that were not traded in the Philippine Stock Exchange are considered personal property under Philippine law. This grants you plenty of freedom regarding what you can do with your shares; you can sell, gift, transfer, or assign them to someone else as you please. This is affirmed by Section 63 of the Revised Corporation Code. There are many different ways you can relinquish your hold on your shares, whether you wish to sell them or give them away. However, the process of transferring them from one person to another stays relatively the same. Here is what you need to know about transferring shares.  What is a stock certificate?  Since a share of capital stock is an intangible personalty (meaning it does not have a physical form), the parties involved in the transfer might not have a clear idea of what is being transferred. This is in contrast to personalty with a physical form, such as tangible goods. To solve this, you must ensure that the parties are aware of what is being conveyed. This is achievable with a stock certificate.  A stock certificate represents a shareholder’s shares of stock. It dictates the number of shares owned by the shareholder, an identification number, date of purchase, and signatures to verify its legitimacy. Stock certificates can be kept online, but you can also request a physical copy. How do you transfer shares? What taxes should one keep in mind when transferring shares? There are certain taxes that must be paid by either the giver or the receiver when transferring shares of stock, regardless of the method of transfer (through selling, gifting, exchanging, etc.). The transfer of shares of stock in a Philippine corporation is subject to the following: What are the requirements of a valid transfer of shares? A transfer of shares will only be acknowledged if it has fulfilled the following requirements, depending on whether the shares of stocks are represented by a stock certificate or not. If the shares are represented by a stock certificate, you must comply with the following requirements: On the other hand, a transfer of shares can still be acknowledged in situations without a stock certificate, such as when a certificate has not yet been issued or if the certificate is not in the possession of the stockholder. In that case, the shares of stock may still be transferred as follows: 

What do you do if a loved one dies without a will? One of our previous articles covered the law of intestate succession. To recap, intestate succession is the distribution of assets of someone who died without a written will. This process could be handled by the law and the state, who will then divide and distribute it to the compulsory heirs. However, the distribution of assets doesn’t always have to involve the court. It could instead undergo a process called an Extrajudicial Settlement of Estate. Here’s what you need to know about this practice. What is an Extrajudicial Settlement of Estate? Extrajudicial Settlement of Estate is a procedure in which all heirs can agree on how the deceased’s assets are distributed. Extrajudicial means ‘out-of-court’; because all heirs are in agreement, there is no need for them to go to court. Once everyone has agreed on how they can divide the assets, they will have to create a Deed of Extrajudicial Settlement of Estate. This is to set the agreements in stone. What are the requirements of an Extrajudicial Settlement of Estate? There are several requirements that must be met first before the deceased person’s assets can undergo an Extrajudicial Settlement of Estate. These include the following: In addition, the Deed of Extrajudicial Settlement of Estate must be notarized and filed with the Register of Deeds. The Deed must also be published in a newspaper of general circulation once a week for three consecutive weeks. Otherwise, the settlement will not be considered valid. What documents are required for the Extrajudicial Settlement Process? It’s important to gather the following documents before you start the Extrajudicial Settlement Process:  What steps are in the Extrajudicial Settlement Process? Miscellaneous Questions What if an heir doesn’t want his or her claim to the estate? If one or more heirs don’t want their claim to the estate, all of the heirs must instead create an Extrajudicial Settlement with Waiver of Rights. Besides the addition of the Waiver of Rights, it’s identical to a regular Deed of Extrajudicial Settlement. The Waiver of Rights allows one or more heirs to relinquish their claim to the estate. What if there is only one surviving heir? If there is only one surviving heir that can claim the estate, he or she can instead execute an Affidavit of Self-Adjudication. This is a statement written under oath by the heir, declaring that he or she is the only heir of the deceased. This allows him or her to adjudicate the entire estate to him/herself. Conclusion Completing the procedure of an Extrajudicial Settlement of Estate can be quite difficult. Heirs might not agree with how the property is divided between them, and additional steps could force the process to prolong itself. But properly handling the deceased’s estate is crucial. One way to make it easier is by gaining the help of a skilled inheritance lawyer. Your lawyer can help you with gathering your requirements, drafting your Deed of Extrajudicial Settlement, and generally help you out throughout the entire process.

What do you do if you have a task concerning legal or financial matters, but it just so happens that you’re currently in another city or country or that you’re ill, so you aren’t in the position to accomplish it? If the task in question is time-sensitive,you might find it hard-pressed to get things done. Thankfully, you would still be able to accomplish your tasks if you authorize someone to do them for you.. All you would need is a Special Power of Attorney. Here’s everything you need to know about this legal document. What is a Special Power of Attorney? A Special Power of Attorney (or SPA for short) is a document that allows one person to act on behalf of another person. These usually include major legal, property, or financial decisions. During the SPA’s effective period, the person authorized to carry out the action is called the agent. Meanwhile, the person granting the agent the authority to act on his or her behalf is called the principal. The document must be notarized to take effect.  Anyone of legal age and who has the capacity to act on the principal’s behalf can be appointed as an agent, as long as they have the principal’s full trust.  You don’t need a SPA for everything you need done for you. Private matters, such as buying furniture on your behalf or taking your child to school, don’t require an SPA. It’s best to get one if you’re dealing with matters regarding real estate, legal matters, transactions with private corporations, or tasks in government offices.  When do you need a Special Power of Attorney? There are many reasons why you might need an SPA to allow someone else to handle your affairs. One common reason is illness. If your medical condition prevents you from performing such actions yourself, you can authorize someone capable and trustworthy to do it for you. You may also need a Special Power of Attorney if you’re currently abroad, which bars you from performing these actions yourself. In that case, you can appoint an agent in the Philippines to accomplish all your tasks. Note that instead of the usual SPA which simply needs notarization by a Notary Public where the said SPA is executed, you would instead need a consularized SPA. The difference between a normal SPA and a consularized SPA is that since you are signing it abroad, the SPA cannot be simply brought to the Philippines for notarization before a Notary Public and it can only have legal effect if it is consularized. You can get the SPA consularized in the Philippine Embassy.   Also, if you’re residing abroad, you might have heard of the term “apostille”. You can also have the SPA apostilled in the relevant government offices in your locality, which produces the same effect as consularization. How do you get a Special Power of Attorney? The process of getting a Special Power of Attorney document is fairly simple. First, you can find several available templates for the document online. Look for one that is both presentable and capable of conveying which powers you want to grant to your agent. Alternatively, you can also write your own SPA instead of looking for a template. Keep in mind the necessary details you need to include when drafting your document: Once your SPA document is complete, print out three copies: one for the principal, one of the agent, and one for the Notary Public. After that, all you need is to go to the Notary Public for notarization. Be prepared for the notarial fees; these could range from P500 to P1,000. A Special Power of Attorney is crucial if you’re unable to accomplish an important task by yourself. Thankfully, the process of getting one is quite simple, easy, and inexpensive. By knowing this information, you’ll be able to get your SPA document without any issues.

Household and relationship abuse are terrifying, yet all too common occurrences all over the country. It’s crucial to ensure that those perpetuating abuse are unable to escape the consequences of their actions. Republic Act No. 9262, or the “Anti-Violence Against Women and Their Children Act of 2004”, seeks to address some of these issues.  In the event that you, your children, or a loved one faces any form of physical or psychological violence, It’s crucial to know your rights. This article aims to break down each part of R.A. 9262 for your ease of understanding. The Basics The Anti-Violence Against Women and Their Children Act of 2004 defines violence against women and their children, lists out protective measures for the victims, and prescribes penalties for the perpetrators. The Regional Trial Court designated as a Family Court shall have original and exclusive jurisdiction over cases of violence against women and their children under this law.  It should be noted that lesbian relationships, whether sexual or dating, are not exempt from the law. This means that women are also liable under RA 9262. Meanwhile, a male spouse or partner suffering the abuse of his wife or partner does not fall under this law. Instead, he would have to file a complaint or case under the Revised Penal Code. Definition of Terms Section 3 of RA 9262 defines all of the terms used in this act so that it’s easier to understand going forward. These terms include the following: Acts of Violence Against Women and Their Children Section 5 of RA 9262 clarifies which acts qualify as a crime of Violence Against Women and their Children. These include the following: Penalties The penalties of committing an act listed in RA 9262 vary and depend on the severity of the act.  Act of Violence Duration of Penalty Attempt to harm the victim 1 month and 1 day – 6 months  Place the victim in fear of imminent physical harm 1 month and 1 day – 6 months Threaten to or does self-harm to control the victim’s actions or decisions 1 month and 1 day – 6 months Restrict the victim from doing something through force or intimidation 6 months and 1 day – 6 years Force the victim into doing something through force or intimidation 6 months and 1 day – 6 years Attempt to or do any form of sexual violence on the victim 6 years and 1 day – 12 years Cause emotional or psychological distress to the victim through behaviors such as stalking, destroying the victims property, etc. 6 years and 1 day – 12 years Cause mental or emotional anguish, public ridicule, or humiliation to the victim 6 years and 1 day – 12 years If the acts are committed while the woman or child is pregnant or committed in the presence of her child, the penalty to be applied shall be the maximum period of penalty prescribed in the section. In addition to imprisonment, the perpetrator shall pay a fine of not less than P100,000.00, but not more than P300,000.00. He or she must also undergo mandatory psychological counseling or psychiatric treatment and shall report compliance to the court. Protection Orders While a victim can file a case against his or her perpetrator for his or her act of violence, it doesn’t guarantee with certainty that the perpetrator won’t endanger the victim again. To prevent this from happening, the victim can apply for a protection order. A protection order prevents further acts of violence against a woman or her child. It also provides these victims other forms of necessary relief. A protection order aims to safeguard the victim from further harm, minimizes disruption in the victim’s daily life, and facilitates the victim’s opportunity and ability to independently regain control over her life. There are three types of protection orders that may be issued under this Act: the barangay protection order (BPO), temporary protection order (TPO) and permanent protection order (PPO). Types of Protection Orders As aforementioned, there are three types of protection orders: the temporary protection order, permanent protection order, and barangay protection order. Barangay Protection Orders, or BPOs, refer to the protection order issued by the Punong Barangay ordering the perpetrator to desist. A Punong Barangay shall issue the protection order to the applicant on the date of filing. If the Punong Barangay is unavailable to act on the BPO application, the application shall be acted upon by any available Barangay Kagawad. BPOs are effective for fifteen days. Temporary Protection Orders, or TPOs, refer to the protection order issued by the court on the date of filing of the application. They are effective for thirty days. The court shall also schedule a hearing on the issuance of a PPO prior to or on the TPO’s expiration date.  Finally, Permanent Protection Orders, or PPOs, refer to protection orders issued by the court after a notice and hearing. The court shall conduct the hearing on the merits of the issuance of a PPO in one day. If the court is unable to conduct the hearing within one day and the TPO issued before is due to expire, the court shall continuously extend or renew the TPO for a period of thirty days.  These protection orders shall include any, some, or all of the following reliefs: All TPOs and PPOs issued under this act shall be enforceable anywhere in the Philippines. A violation shall be punishable with a fine ranging from P5,000.00 to P50,000.00 and/or imprisonment of six months. Who can file for a Protection Order? While the victim can file a Petition for Protection Order, other parties can also file it for him or her. These include his or her parents; other relatives within the fourth civil degree of consanguinity or affinity; social workers; police officers; Punong Barangay or Barangay Kagawad; the victim’s lawyer, counselor, therapist, or healthcare provider; or at least two concerned citizens of the municipality who have personal knowledge of the offense committed. Where can I

How do you earn your income? A majority of people make a living by gaining employment at a company. By working at a company, you’ll be able to earn compensation income. Those who make a living solely through compensation income usually don’t have to worry about filing their own income tax returns, as their employer handles it for them. However, many people aspire to gain income from multiple sources, such as through freelancing. If you’re thinking of doing the same, you must first learn about the basics of filing an income tax return. What is an Income Tax Return? Income tax refers to the tax on any salary or income, regardless of its source, that corresponds to an income tax rate. According to the BIR, the annual income tax return “summarizes all the transactions covering the calendar year of the taxpayer.” Individuals and enterprises alike must pay their taxes on or before April 15 every year. It’s crucial to follow this deadline to the letter. Depending on the severity, purposely missing your ITR could either result in a fine or a few years of imprisonment. Ensure that you stay on top of your income tax if you’re required to file them yourself. Who is required to and exempted from filing an ITR? As a general rule of thumb, all Filipino citizens with a source of income are required to file an ITR. Aliens and foreigners only need to file an ITR for any sources of income inside the Philippines. Again, employees of companies are still required to file an ITR, but their taxes are usually taken care of by their employers. In specifics, those who are required to file an ITR include: Those who are not required to file an ITR include: What are the methods of filing an ITR? There are many ways you can file your ITR, making it easily accessible for everyone. However, do note that you may be required to use a specific method, depending on your circumstances. 

Because the Philippines currently doesn’t have a divorce law, you may find your options limited if you wish to separate from your spouse. Currently, a separating couple has three options under the Family Code: legal separation, nullity of marriage, or annulment. The best course of action varies case to case. The couple will have to take several factors into account, such as the circumstances of their marriage, the grounds for their separation, the cost of the legal process, and whether they want the marital ties to be severed or not.  In this article, we break down everything you need to know about legal separation, nullity of marriage, and annulment. Nullity of Marriage A Declaration of Nullity of Marriage applies to a marriage that is null and void from the beginning, due to it missing one or more of the essential or formal requisites of marriage. Because the marriage was never valid, the marital ties are severed and both parties will be able to remarry.  Grounds for Nullity of Marriage Again, a married couple can file for nullity of marriage if said marriage is considered void ab initio, or void from the beginning. According to Article 35 of the Family Code, the following marriages fall into this category: In addition to those under Article 35, the following marriages are also considered void from the beginning:  Annulment You can get your marriage annulled if it was valid at first, but because of the existence of the grounds under Article 45 of the Family Code, the marriage will be annulled. This is in contrast to the declaration of nullity of marriage, which can only apply to marriages that are null from the beginning. Grounds for Annulment According to Article 45 of the Family Code, you can get an annulment on any of the following grounds: Process of Annulment and Nullity of Marriage  The main difference between annulment and declaration of nullity of marriage is whether or not the marriage was considered valid from the beginning. Because of this, there are many similarities between the steps in filing for the two separation procedures. With that in mind, here is a rough outline of the steps in filing for annulment of declaration of nullity of marriage. However, note that there will still be differences between the two procedures and that some situations may add or skip over certain steps, depending on the circumstances. Legal Separation Legal separation is a legal remedy for couples suffering from a problematic marriage. It differs from both annulment and declaration of nullity of marriage in that the marriage is still considered valid and subsisting. Because of this, neither party is allowed to remarry in the future.  However, it does allow them to live apart and own separate assets. By doing this, the guilty party cannot inherit any of the innocent party’s assets. One difference between a legal separation, an annulment, and a declaration of nullity of marriage is that legal separations are almost always borne from a conflict between the two parties. In contrast, a separating couple doesn’t necessarily have to have conflict to get annulled or file for a declaration of nullity of marriage. Grounds for Legal Separation The primary purpose of a legal separation is to provide a way for problematic marriages to separate safely, even if the marriage bond is not dissolved. Under Article 55 of the Family Code, one may file a petition for legal separation within 5 years from the time of the occurrence of the following grounds: Process of Legal Separation In contrast to the process of an annulment, legal separation is a more combative court case. Here is an overview of how a legal separation is processed. Note that these steps may vary depending on the situation and circumstances. Conclusion Whether or not the Philippines will ever get a divorce law remains unclear, though there are steps being taken to legalize it. For now, any couple looking to get separated can still consider their existing options carefully, so they can decide which is the best move for them. If you are in need of a lawyer specializing in Family Law, you can contact Sadsad Tamesis Legal and Accountancy Firm’s team of lawyers today.

Have you ever been on the other end of a threat? Many people throw threats left and right without ever meaning to follow up on them. More often than not, they’re are lightly given to friends as a joke. But a serious threat that causes fear or mental disturbance should not be taken lightly. Threats come in three separate categories. These can help differentiate the gravity and intention of each one that you may come across. Here’s what you need to know about the difference between grave threats, light threats, and other light threats. What are Grave Threats? You receive a grave threat if someone threatens to commit a crime that could potentially harm you, your family, or your property. It must amount to some form of legal crime to be considered a grave threat. Grave threats are punishable under Article 282 of the Revised Penal Code. This type is further divided into three categories: An example is from Caluag vs People, G.R. No. 171511, in which the petitioner held a gun to one of the two private complainants and verbally threatened her by uttering, to wit, “Saan ka pupunta gusto mo ito?” What are Light Threats? A light threat does not amount to a crime, but still causes fear or mental disturbance. This type of threat also always comes with a condition that the victim must fulfill. For example, instead of being threatened with murder or property damage, the offender might instead threaten to share the victim’s darkest secret if he/she doesn’t do what the offender says.  Light threats are punishable under Article 282 of the Revised Penal Code. What are Other Light Threats? Finally, other light threats also do not amount to a crime, nor is there ever a condition for the victim to fulfill. The offender should also never have intended to follow through with the threat that he/she made towards the victim. Other light threats are punishable under Article 285 of the Revised Penal Code. An example is from Ignacio vs People, G.R. No. 226991, wherein Ignacio was found guilty of Other Light Threats by brandishing a bolo knife to the private complainants and threatening them with it. No condition was given, and the petitioner never intended to follow through with her threat. If you feel fearful for your safety after receiving a threat, remember that you have the power to seek legal help. Here at Sadsad Tamesis Legal and Accountancy Firm, we will always strive for a positive and just outcome for their clients, for their future and peace of mind. Book a consultation with our team of lawyers today.

Have you written out your will yet? Writing a will isn’t in many people’s minds. Wills aren’t common in the Philippines, and even then, many believe they’re too young to think about it. Unfortunately, death is often unpredictable and can strike the most unlikely of people. A written will can help grieving loved ones figure out how to handle the deceased’s assets and property without worrying about whether they’re going with or against his or her wishes. If a loved one dies without a will, you’ll have to handle their property in accordance with intestate succession. This is in accordance with Article 960 of the Civil Code. Here is a brief guide to intestate succession, so that you know what to expect and how to handle the assets and property of a deceased loved one. 1. What is a will? A will, or a last will and testament, is a legal document dictating how the writer of the will would want his or her assets to be distributed after his or her death. Many choose to divide their assets up to give to any heirs or descendants. They can also give their assets to other family members, non-family members, an organization, or a charity. They can even dictate when these assets should be given to the heirs. A last will and testament will only take effect after the writer’s death. The will must also name an executor, who will handle the distribution of assets.  2. What is intestate succession? The handling of assets is simple enough if the deceased had a will prepared. But what happens when a person dies without having written a will at all? The distribution of assets without a written will is called intestate succession. The law and the state will handle the assets, and will divide and distribute it to a list of certain compulsory heirs. 3. Who are the compulsory heirs in intestate succession? The list of compulsory heirs goes in accordance with priority. Those listed towards the top should have  the closest relationship to the deceased and are as follows: Conclusion Dying without having written a will means that your loved ones wouldn’t know what your intentions were with your assets. As a result, intestate succession may distribute your assets in ways you might not agree with otherwise. It’s a good idea to think of your will as soon as now, especially if your assets are plentiful.  If you plan on writing your will, it’s a good idea to hire an estate lawyer. An estate lawyer can either help you with the process or even write the will on your behalf. He or she can also ensure that your wishes are fully carried out. If you’re looking for an estate lawyer to help you with your will, consider booking a consultation with Sadsad Tamesis Legal and Accountancy Firm’s team of lawyers.