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Free Legal Advice Philippines » GENERAL PRINCIPLES, UPDATES » LEGAL MATTERS, GEN PRINCIPLES, DOCTRINES, UPDATES » Commercial Law » Corporate Rehabilitation » AUTOMATIC STAY

AUTOMATIC STAY

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1AUTOMATIC STAY Empty AUTOMATIC STAY Tue Sep 23, 2008 5:17 pm

barrister

barrister
Reclusion Perpetua

Effect of appointment of a management committee or rehabilitation receiver:

All actions for claims against the corporation shall be suspended accordingly.

Purpose: To enable the management committee or the rehabilitation receiver to effectively exercise its powers free from any judicial or extrajudicial interference that might unduly hinder or prevent the rescue of the debtor company (Rubberworld v. NLRC).

No definite duration; deemed to apply during the entire period that the corporate debtor is under management committee or the rehabilitation receiver (BF Homes v. CA).

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Free Legal Advice Philippines » GENERAL PRINCIPLES, UPDATES » LEGAL MATTERS, GEN PRINCIPLES, DOCTRINES, UPDATES » Commercial Law » Corporate Rehabilitation » AUTOMATIC STAY

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