Practice question
A license holder executes a private agreement selling its recruitment business and purporting to assign its license to a newly formed corporation. The corporation will use a different address and appoint its own recruiting agents. The parties believe one notarized agreement resolves every regulatory issue. Which assessment is most accurate?
- The agreement automatically transfers the license and approves the new address and agents
- The agreement transfers the license if the corporation assumes all liabilities
- The license cannot be assigned to the corporation, and address changes and agent appointments separately require prior DOLE approval
- Only the new agents need approval; the license and address transfer automatically
- No regulatory requirements apply because the sale is between private parties
Legal references
- https://lawphil.net/statutes/presdecs/pd1974/pd_442_1974.html — Labor Code, Articles 13(d) and (f), 25, and 29, license or authority and nontransferability.
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