With the purpose of strengthening and simplifying corporate governance standards in the country, President Rodrigo Duterte has signed the Revised Corporation Code amending Batas Pambansa 68, or the Corporation Code.
In his keynote speech delivered before several government officials gathered at the Rizal Hall of the Malacañang Palace, President Duterte said that he signed the Revised Corporation Code which seeks to establish a more business-friend environment that will enable corporations and other juridical entities to thrive.
Perpetual existence of corporations is now allowed under the Revised Corporation Code, as well as the removal of the minimum capital requirement.
The new code also allows a one-person corporation. Local business owners and investors are now able to register a business as a corporation without other incorporators. It also allows them to apply for loans and grants as a one-person corporation.
Improve the ease of doing business in the Philippines
These new provisions aim to improve the ease of doing business in the country.
Just recently, the Philippines’ ranking in the latest Ease of Doing Business Report of the World Bank dropped from 113th to 124th among 190 economies.
Among the other notable provisions of the Revised Corporation Code is the requirement for corporations vested with public interests to have independent directors, as a means of providing protection for minority stockholders.
Furthermore, the new code allows stockholders to use remote communication to vote on meetings and permits electronic filing of reportorial requirements.
It also grants the Securities and Exchange Commission with additional powers to enforce the code, investigate and penalize violations, remove directors, and to update the provisions on records-keeping and records access based on current technologies.
Incorporating international best standards and practices into Philippine commerce and business that are meant to address the current realities, the Revised Corporation Code will make opening a business in the country easier by doing away with numerous and stringent incorporation and regulatory requirements.