Sharlyn May Nas

Role of the Financial Manager The Financial Manager (FM) is the person whose responsibility includes the overall financial operation of the department.  One person in each department, usually the Department Administrator or Director, generally directs the department’s financial operations.  These duties include budget oversight, financial reporting, and directing financial activities.  The FM is the person generally recognized as the chief financial operations manager as evidenced by their position and/or their budget and finance activities.   The FM determines signatory authority, work flow, and other processing decisions for each fund and organization.    CLASSIFICATIONS OF PARTNERSHIP 1. As to extent of its subject matter a. UNIVERSAL PARTNERSHIP i. UNIVERSAL PARTNERSHIP OF ALL PRESENT PROPERTY - comprises the following: a) Property which belonged to each of the partners at the time of the constitution of the partnership b) Profits which they may acquire from all property contributed ii. UNIVERSAL PARTNERSHIP OF PROFITS - comprises all that the partners may acquire by their industry or work during the existence of the partnership b. PARTICULAR PARTNERSHIP - has for its objects: i. Determinate things ii. Their use or fruits iii. Specific undertaking iv. Exercise of profession or vocation 2. As to liability of partners a. GENERAL PARTNERSHIP - consists of general partners who are liable pro rata and subsidiarily and sometimes solidarily with their separate property for partnership debts b. LIMITED PARTNERSHIP - one formed by 2 or more persons having as members one or more general partners and one or more limited partners, the latter not being personally liable for the obligations of the partnership 3. As to duration a. PARTNERSHIP AT WILL - one in which no time is specified and is not formed for a particular undertaking or venture which may be terminated anytime by mutual agreement b. PARTNERSHIP WITH A FIXED TERM - the term for which the partnership is to exist is fixed or agreed upon or one formed for a particular undertaking 4. As to legality of existence a. DE JURE PARTNERSHIP - one which has complied with all the legal requirements for its establishment b. DE FACTO - one which has failed to comply with all the legal requirements for its establishment 5. As to representation to others a. ORDINARY OR REAL PARTNERSHIP - one which actually exists among the partners and also as to 3rd persons b. OSTENSIBLE OR PARTNERSHIP BY ESTOPPEL - one which in reality is not a partnership but is considered a partnership only in relation to those who, by their conduct or omission, are precluded to deny or disprove its existence 6. As to publicity a. SECRET PARTNERSHIP - one wherein the existence of certain persons as partners is not avowed or made known to the public by any of the partners b. OPEN OF NOTORIOUS PARTNERSHIP - one whose existence is avowed or made known to the public by the members of the firm 7. As to purpose a. COMMERCIAL OR TRADING PARTNERSHIP - one formed for the transaction of business b. PROFESSIONAL OR NON TRADING PARTNERSHIP - one formed for the exercise of a profession CLASSIFICATIONS OF CORPORATIONS 1. In Relation to the State: (a) Public corporations- Organized for the government of the portion of the state. Majority shares by the Government do not make an entity a public corporation. (b)  Quasi-public corporations- For example, Boy Scouts of the Philippines does not receive any monetary or financial subsidy from the Government, and that its funds and assets are not considered government in nature and not subject to audit by the COA, the fact that it received a special charter from the government, that its governing board are appointed by the Government, and that its purpose are of public character, for they pertain to the educational, civic and social development of the youth which constitute a very substantial and important part of the nation, it is not a public corporation in the same sense that municipal corporation or local governments are public corporation since its does not govern a portion of the state, but it also does not have proprietary functions in the same sense that the functions or activities of government-owned or controlled corporations such as the National Development Company or the National Steel Corporation, is may still be considered as such, or under the 1987 Administrative Code as an instrumentality of the Government. Therefore, the employees are subject to the Civil Service Law. (c) A government-owned or -controlled corporation when organized under the Corporation Code is still a private corporation. But being a government-owned or -controlled corporation makes it liable for laws and provisions applicable to the Government or its entities and subject to the control of the Government. A private corporation is created by operation of law under the Corporation while a government corporation is normally created by special law referred to often as a charter. 2. as to Place of Incorporation: (a) Domestic Corporation (b) Foreign Corporation 3. as to Purpose of Incorporation: (a) Municipal or Public corporation (b) Religious Corporation (c) Educational corporations (d) Charitable, Scientific or Vocational corporations (e) Business Corporation 4. as to Number of Members: (a) Aggregate Corporation (b) Corporation Sole 5. as to Legal Status: (a) De Jure Corporation (b) De Facto Corporation RIGHTS OF STOCKHOLDERS Dividend Right: A stock entitles its owner to get a share of the yearly net profit of a company. Dividends are paid to stockholders when the company decides to allocate dividends at its general assembly. A dividend is one of the most important financial benefits of the stockholder, representing an acquired right, but may be limited with certain terms. Pre-emptive Right: It entitles a priority to the stockholder to participate in the capital increase of the company through a rights issue. The subscription period to exercise the pre-emptive right is minimum 15 days and maximum 60 days. Rights coupons can be traded on the Rights Coupons Market. Right to Share in Liquidation Balance: If there remains any balance after the company’s liquidation, the stockholder participates in such balance in proportion to its shareholding interest. Right to Participate in Management of a Company: The stockholder is entitled to attend the general assembly, elect the board of directors, and be elected a member of that board. Voting Right: Each stock vests minimum one voting right in its holder. Notwithstanding, the number of voting rights which a stock will vest in its holder may be determined by the articles of association, and the voting rights attached to a single share may be increased. Companies may also grant dividend benefits, issuing stocks without a voting right. Right to Receive Information: It is essential that an investor in a stock market has access to the information relating to the company. The stockholder’s right to receive information cannot be prevented or limited with the articles of association or a decision of the company. Publicly-held companies are obligated to disclose any important information/news related to the company’s condition in the most practicably way. Companies also disclose their independently-audited financial statements on a quarterly basis. CLASSES OF STOCKS What Does Dividend Mean? A distribution of a portion of a company's earnings decided by the board of directors to a class of its shareholders. The dividend is most often quoted in terms of the dollar amount each share receives (dividends per share). It can also be quoted in terms of a percent of the current market price, referred to as dividend yield. The different types of dividends include: Special dividend: Normally, public companies declare their dividends on a specific schedule; however, they also have the option to declare a dividend at any time. This type of dividend is referred to as a special dividend. Cash dividend: Paid in checks, this is the most basic form of dividend. Cash dividends considered a type of investment earnings, and are taxable. Stock dividend: Given in the form of bonus shares or stocks of the issuing company or a subsidiary company. Normally, they are offered on the basis of a prorata allotment. Property (in kind) dividend: Distributed in the form of assets by the issuing company or a subsidiary company. Other types of dividend: Warrants and financial assets having market value are also distributed in the form of dividends. The distribution of dividends requires the approval of the board of directors, who declare the time or date when the dividend will be distributed. The dates are categorized into four types: Ex-dividend date: The ex-dividend date is defined as the date subsequent to which every share that is traded does not have any right to claim the dividend, which has been declared in the immediate past. Declaration date: The declaration date is defined as the date on which the board of directors declares its aim for payment of dividend. On this date, the payment date and the record date are also announced. Record date: The record date is defined as the date on or before which the shareholders who have officially recorded their ownership and are entitled to get the dividend. Payment date: The payment date is defined as the date on which the checks of dividend will be sent to shareholders or deposited to brokerage accounts. STEPS IN DIVIDEND PAYMENT • Declaration Date – Board announces Dividend amount and dates i.e. Jan 30th 2003. Based on Recommendation of CEO, CFO, and Treasurer – Declared dividend recorded as actual current liability on the Balance Sheet and Retained Earnings reduced by same amount. – If announced Dividend is higher than before, generally Stock Price rises because Investors take this to be a Positive Signal about future earnings • Holder-of-record Date – Firm records names of shareholders in the Stock Transfer Register i.e. Feb 28th 2003. About 1 month after Declaration Date • Ex-Dividend Date (Important) – 4 Days before Holder-of-record Date. Deadline for new buyers to notify Firm so that Dividend is paid to them and not the previous registered owners i.e. Feb 24th 2003 – Share Price expected to DROP by about the same amount as Dividend on this date. • Payment Date – Firm mails cheques to registered shareholders i.e. March 15th, 2003. About 1 ½ months after Declaration Date.