The Birmingham age-herald., 1906-04-30
NEW CORPORATION
 LAW IS ENACTED Spanish Code of Commerce is Repealed in Philippines FEATURES OF TIE NEW LAW Books of all Corporations Doing Husl- ness In the Islands are Made
 Subject to Government
 Inspection.
FEATURES OF TIE NEW LAW

Washington. April 2a.-The Philippine commission has Just enacted a corpora ton law patterned after the corporation acts generally in force in the United States. Up to the present time the law under which capital could incorporate in the Philippine islanls was the old Spanish code of commerce. The pfo- visions of this code in so far as they relate to the Organization of business corporations according 10 the Philippine officials are archaic and Is adapted to the needs of modern commerce as con dueted by English-speaking people. They are repealed by the new law and persons wishing to invest capital in the Philip pines can now do SO under the effect of the provisions framed ia accordance with common law principles The act was prepared by Commissioner James F.. Smith who will succeed Governor Ide as governor general of the Philippine is- lands on September 15 of this year.
 Feature of Law.
 The salient features os the law are as follows:
 Five or more persons not exceed flf- teen, majority being residents of the islands, may incorporate by filing articles of incorporation with tile proper officer of the insular government, the principal officer of the company to be in the is- lands, The life of the corporation may be for any period up to fifty years. The directors may number from five to ff- tean Before fr,oarnor.tt.... cent of the capital stock need be sub scribed. and 25 per cent of the subscrip- ton paid in. The Incorporation fee is only S12.50 gold. Stock and bonds may he Issued for cash or for property received at fair valuation. The capital stock may be increased or decreased by a two-thirds vote of the caoitaI stock. and bonded indebtedness may be incurred hy a majority vote of the bscrIbed capi- tai stock
 The articles or incorporation may be amended by majority vote of the direc- tors, and a two-thirds vote of the capital stock Meetings of the stockholders are required to be held where the corpora ton is established: but directors meet ings may be held anywhere
 Only two of the directors need he resi- dents Of the Philippines. Voting in the election of directors may be cumulative and by proxy
 Annual Reports.
 All public utility or public service cor porations, whether domestic or foreign. are required to file annual reports with the nsular auditor showing capital stock. indebtedness, dividends declared etc. which reports are confidential. The books or all corporations doing business in the islands are subject to government inspec- ticn. The provisions of the act are sub ject to amendment, but rights and reme- dies hereunder are safeguarded. There IS no maximum or minimum limit fixed to the amount of the capital stock allowed. and corporations may hold stock in other corporations, subject to certain restric- tons.
 The act contains special provisions re- garding railroad companies banking and trust corporations. insurance and re- livious corporations building and loan corporations and colleges and other in- stitutions of learning.
 American and other foreign corpora tions may qualify to do business in the Philippine Islands by obtaining a license from the proper officer of the insular government. To secure license a cor poration, 1t is announced. need only to show that it Is financially secure and set forth a statement of the nature of it's business, the amount of it's capital stock, it's assets and liabilities, etc., and the name of it's responsible local agent. The license fee Is $25 gold. Without this license foreign corporations have no standing whatever in the islands For eign corporations are bound by the laws, rules and regulations applicable to do- mestic corporations, except such pro- ton and dissolution or which fix the responsibilities and liabilities "interse'' of the stockholders and officers of the corporation