The amendment is a minor change or addition designed to improve a text or a piece of legislation. It is vital, especially in constitutions or corporations.
Constitutions need to be amended over time to adapt insufficient provisions to meet new needs, such as adding rights. Otherwise, constitutional texts will fail to reflect society's realities and political needs over time.
A charter amendment is a change, usually for the better, by amending or narrowing the terms of the charter. Also, in legal terms, modification is generally not synonymous with cancellation, but overall modification may include cancellation of parts thereof.
To improve or adapt to certain situations, businesses amend their Articles of Incorporation to adjust to their or their own client’s needs.
Under Section 15, Revised Corporation Code, any matter stated in the Articles of Incorporation may be amended, unless otherwise provided by the said Code or by special law.
In the case of a public limited company, the vote or written consent of the shareholders representing a majority of the board, or trustees and at least two-thirds (2/3) of the issued share capital, without prejudice to the rights of opposing shareholders. In order to exercise voting rights, it is necessary to amend the Articles of Incorporation in accordance with the provisions of the revised Companies Act.
For non-stock companies, amendments to the Articles of Incorporation may be made by the vote or written consent of the Board of Trustees and at least two-thirds (2/3) of its members.
If you have a need for an amendment to your Company, Manila Consultants offers services tailored to cater to your needs. We provide services specific to the registration, amendment, and termination of businesses. Visit us at our social media platforms, or visit manilaconsultants.com for more information