[ Act No. 3849, November 11, 1931 ]

AN ACT AMENDING SECTION NINETEEN OF ACT NUMBERED FOURTEEN HUNDRED AND FIFTY-NINE, KNOWN AS THE CORPORATION LAW.

Be it enacted by the Senate and House of Representatives of the Philippines in Legislature assembled and by the authority of the same:SECTION 1. Section nineteen of Act Numbered Fourteen hundred and fifty-nine, known as "The Corporation Law," is hereby amended so as to read as follows:

"SEC. 19. If a corporation does not formally organize and commence the transaction of its business or the construction of its works within two years from date its incorporation, its corporate powers cease. The due incorporation of any corporation claiming in good faith to be a corporation under this  Act and its right to  exercise corporate powers shall not be inquired into collaterally in any private suit to which the corporation may be a party, but such inquiry may be had at the suit of the Insular Government on information of the Attorney-General: Provided, however, That every corporation organized or registered under this Act, shall before the fifth day of January of each year report to the Director of the Bureau of Commerce and Industry any cessation or discontinuance of business or change of address, if any, in such corporation.Any corporation violating the provisions of this section shall be subject to a fine of not less than one hundred pesos nor more than one thousand pesos."

SEC. 2. This Act shall take effect on its approval.Approved, November 11, 1931.

Source: Supreme Court E-Library