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    This document outlines the types of business organizations that can file for different insolvency proceedings under the Financial Rehabilitation and Insolvency Act (FRIA) of the Philippines and who is authorized to approve or file the petition for each proceeding. The types of business organizations are sole proprietorships, partnerships, and corporations. The types of proceedings are voluntary rehabilitation, involuntary rehabilitation, pre-negotiated rehabilitation, voluntary liquidation, and involuntary liquidation. For each proceeding, the document specifies who among the owner, partners, directors, stockholders, or creditors can approve or file the petition.

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    This document outlines the types of business organizations that can file for different insolvency proceedings under the Financial Rehabilitation and Insolvency Act (FRIA) of the Philippines and who is authorized to approve or file the petition for each proceeding. The types of business organizations are sole proprietorships, partnerships, and corporations. The types of proceedings are voluntary rehabilitation, involuntary rehabilitation, pre-negotiated rehabilitation, voluntary liquidation, and involuntary liquidation. For each proceeding, the document specifies who among the owner, partners, directors, stockholders, or creditors can approve or file the petition.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    22 views1 page

    Type of Business Organization

    Uploaded by

    TeacherEli
    This document outlines the types of business organizations that can file for different insolvency proceedings under the Financial Rehabilitation and Insolvency Act (FRIA) of the Philippines and who is authorized to approve or file the petition for each proceeding. The types of business organizations are sole proprietorships, partnerships, and corporations. The types of proceedings are voluntary rehabilitation, involuntary rehabilitation, pre-negotiated rehabilitation, voluntary liquidation, and involuntary liquidation. For each proceeding, the document specifies who among the owner, partners, directors, stockholders, or creditors can approve or file the petition.

    Copyright:

    © All Rights Reserved
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    of 1

    TYPE OF BUSINESS TYPE OF PROCEEDING WHO WILL APPROVE OR

    ORGANIZATION FILE THE PETITION

    Sole Proprietorship Voluntary Rehabilitation Owner/Proprietor (Sec. 12


    FRIA)

    Partnership Voluntary Rehabilitation Majority of Partners (Sec. 12


    FRIA)

    Corporation Voluntary Rehabilitation 1) Majority of the Directors


    or Trustees; and
    2) Stockholders
    representing 2/3 of
    Outstanding Capital;
    2/3 of Members of Non-
    stock Corp. (Sec. 12
    FRIA)

    Creditor or group of creditors


    Sole Proprietorship, Involuntary Rehabilitation with a claim of, or the aggregate
    Partnership, and Corporation of whose claims is, at least 1M
    or at least 25% of the subscribed
    capital stock or partners’
    contributions, whichever is
    higher (Sec. 13 FRIA)

    Sole Proprietorship, Pre-Negotiated Rehabilitation The insolvent debtor and the


    Partnership, and Corporation (Petition for Approval of Pre- Rehabilitation Plan is endorsed
    Negotiated Rehabilitation Plan) or approved by creditors
    holding at least 2/3 of the total
    liabilities of the debtor
    including secured creditors
    holding more than 50% of the
    total secured claim and
    unsecured creditors holding
    more than 50% of unsecured
    claims (Sec. 76 FRIA)

    Sole Proprietorship, Voluntary Liquidation (Sec. 90 Insolvent Debtor


    Partnership, and Corporation FRIA)

    a) Three (3) or more


    Sole Proprietorship, Involuntary Liquidation creditors, and
    Partnership, and Corporation (Sec. 91 FRIA) b) The aggregate of whose
    claims is at least either
    1M or least 25% of the
    subscribed capital stock
    or partners’
    contributions,
    whichever is higher.

    Individual Debtor Suspension of Payment (Sec. 94 Individual Debtor


    FRIA)

    Individual Debtor Voluntary Liquidation (Sec. 103 Individual Debtor with at least
    FRIA) P500,000.00 debts who does not
    have sufficient assets to cover
    his liabilities

    Involuntary Liquidation Any creditor or group of


    Individual Debtor [Petition for Acts of Insolvency)] creditors with a claim of, or with
    (Sec. 105 FRIA) claims aggregating at least
    P500,000.00

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