CONVERSION FROM ONE PERSON CORPORATION (OPC) TO ORDINARY STOCK CORPORATION (OSD) AND VICE VERSA.

1. OSC may apply for its conversion into an OPC.

   1. If a single stockholder has acquired all the outstanding capital stock of an OSC with corresponding Certificate Authorizing Registration or tax clearance having been issued by the BIR

   2. Single stockholder must be a natural person of legal age, a trust or an estate.

   3. Upon  issuance  of the  Certificate  of  Filing  bof Amended  Articles  of    Incorporation  by  the  SEC  reflecting  the  conversion  to  OPC,  the  Articles  of   Incorporation  and  By-laws  of the  OSC  shall  be deemed  superseded. The  date  of issuance of the Certificate of Filing of Amended Articles  of Incorporation  shall  be deemed  as the date  of approval  of the  conversion.

   4. The OPC  converted  from  an  OSC shall succeed the latter and be legally responsible for all the  latter’s  outstanding  liabilities  as of the date  of  approval  of the  conversion.

2. OPC may be converted to OSC.

   1. When the shares in an OPC ceases to be held solely by a single stockholder.

   2. Notice to SEC of the facts and circumstances leading to be conversion is required;

      1. Following  the  transfer/s   of  shares   in  an  OPC  wherein   there   becomes  at  least  two  (2)  stockholders  in  the  OPC,  a  Notice  of  Conversion  of  OPC into an OSC shall  be filed  with   the  Commission  within  sixty  (60)  days  from  such  transfer/s  of  shares.  The  period for filing the Notice shall  be observed even though the conversion will  be  applied for,  or will take  place,  afterwards.

      2. For  the   purpose  of  submitting  the   notice,   the  date  of transfer  of  shares  shall  be  deemed  to  be  the  date  that  the  corresponding  Certificate  Authorizing  Registration/  tax  clearance  is issued  by the  Bureau  of  Internal  Revenue.

      3. If the  Notice  of  Conversion  is filed  with  the  Commission  beyond  sixty  (Upon  issuance  by the SEC  of the Certificate  of Filing of Amended Articles of  Incorporation  and of By-laws  reflecting the conversion to an OSC60)  days  from  the  transfer  of  shares,  the  OPC  may  still  be  approved  for  conversion  into  an  Ordinary  Stock  Corporation  subject  to  prior  payment  of  penalty

3. Upon  issuance  by the SEC  of the Certificate  of Filing of Amended Articles of  Incorporation  and of By-laws  reflecting the conversion to an OSC,  the  Articles  of  Incorporation  of the  OPC  shall  be deemed  superseded. The  date  of  issuance  of the Certificate  of  Filing of Amended  Articles  of  Incorporation and  of  Bylaws  shall  be deemed  as the date  of approval  of the  conversion.

4. The  OSC converted  from  an OPC shall succeed the latter and be legally responsible for all the  latter’s  outstanding  liabilities  as of the  date  of  conversion.

5. By reason  of the  nature  of these  corporations,  the conversion  from  an OSC to OPC shall  be deemed  as optional. On the other hand, the  conversion  from an OPC  to OSC  shall  be deemed  as  mandatory,  unless when  winding-up  and  dissolution  is  appropriate.
   

Reference: SEC Memorandum Circular No. 27 s. 2020.

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