Document background
The Conversion Agreement is a crucial document used in Philippine corporate practice when a business entity decides to change its organizational structure from one form to another (e.g., from a partnership to a corporation, or from a domestic corporation to a foreign corporation). This document becomes necessary when companies need to adapt their legal structure to meet evolving business needs, tax considerations, or regulatory requirements. The agreement must comply with the Revised Corporation Code of the Philippines, Securities Regulation Code, and other relevant laws. It typically includes detailed provisions for asset transfer, liability assumption, shareholder rights, regulatory approvals, and operational continuity. The Conversion Agreement serves as the foundational document that guides the entire conversion process, ensuring legal compliance and protecting all stakeholders' interests.
