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Act No. 1459 Section 16

Section 16

SEC. 16. No corporation organized under this Act shall create or issue bills, notes, or other evidence of debt for circulation .as money, and no corporation shall issue stock or bonds except in exchange for actual cash paid to the corporation or for property actually received by it at a fair valuation equal to the par value of the stock or bonds so issued. No corporation shall make or declare any stock or bond dividend or any dividend whatever except from the surplus profits arising from its business, or divide or distribute its capital stock or property other than actual profits among its members or stockholders until after the payment of its debts and the termination of its existence by limitation or lawful dissolution: Provided, however, That banking, savings and loan, and trust corporations may receive deposits and issue certificates of deposit, checks, drafts, and hills of exchange and the like in the transaction of the ordinary business of banking, savings and loan, and trust corporations.

Read the full instrument → · Open the chapter this section belongs to: CHAPTER I.—General provisions as to corporations. →

Other provisions in CHAPTER I.—General provisions as to corporations.

Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗ · Data as of July 4, 2026

CitationAct No. 1459 Section 16 (LawPlayer, data as of July 4, 2026)

Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).

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