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Act No. 2039 Section 17

Section 17

SEC. 17. No stocks or bonds shall be issued by any corporation owning or operating under this grant, except in exchange for actual cash, or for property at a fair valuation, equal to the par value of the stock or bonds so issued; nor shall such corporation declare any stock or bond dividend; nor shall any person, company, or corporation receiving this franchise from the Government of the Philippine Islands, or from its grantee, use, employ, or contract for the labor of persons claimed or alleged to be held in involuntary servitude, and any person, company, or corporation violating this provision shall forfeit all charters, grants, franchises, and concessions for doing business in the Philippine Islands, and in addition be deemed guilty of an offense, and punished therefor as provided by law.

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Other provisions in Act No. 2039

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. 2039 Section 17 (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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