For how long can a corporation suspend its operations under the Revised Corporation Code?

Under the Revised Corporation Code, a corporation is allowed to suspend its operations for a period not exceeding three years. This provision is designed to provide corporations with a necessary buffer during challenging times, allowing them to regroup or restructure without permanently dissolving.

The code recognizes that circumstances can arise which might require a temporary halt in business activities. Three years is seen as a reasonable timeframe for a corporation to evaluate its situation, make necessary adjustments, or plan for a more sustainable operation in the future. After this period, if the corporation has not resumed its operations, it may face consequences, such as involuntary dissolution.

The other options do not align with the specifics of the Revised Corporation Code. For instance, indefinite suspension is not allowed as it could lead to regulatory issues, while one year and two years do not encompass the full allowance of three years stipulated by the code.