What are the effects of non-use of corporate charter and continuous inoperation of a corporation?
SEC. 22 of Batas Pambansa Blg. 68 "The Corporation Code of the Philippines" would be the reference of the effects of non-use of corporate corporate charter and continuous inoperation of a corporation as follows:
SEC. 22. Effects of non-use of corporate charter and continuous inoperation of a corporation. - If a corporation does not formally organize and commence the transaction of its business or the construction of its works within two (2) years from the date of its incorporation, its corporate powers cease and the corporation shall be deemed dissolved. However, if a corporation has commenced the transaction of its business but subsequently becomes continuously inoperative for a period of at least five (5) years, the same shall be a ground for the suspension or revocation of its corporate franchise or certificate of incorporation.
This provision shall not apply if the failure to organize, commence the transaction of its business or the construction of its works, or to continuously operate is due to causes beyond the control of the corporation as may be determined by the Securities and Exchange Commission.
