In order to encourage of having more and new businesses that would boost Philippine economy and create more jobs for the Filipino people, the House of Representatives unanimously passed on third and final reading the proposed Revised Corporation Code of the Philippines which provides for the inclusion into Philippine commerce and business of internationally accepted best standards and practices in doing business.
This was also the same concerned echoed by EU Ambassador to the Philippines and Head of Delegates Franz Jessen when exclusively interviewed by THEPHILBIZNEWS on how the Philippines can entice more investors from EU to move to the country.
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EU Ambassador sees more investment moving to Philippines from EU
Interestingly, there was no opposition or voted for negative on House Bill 8374. All the 165 congressmen voted for affirmative.
With this development, it would allow the perpetual existence of a corporation and the formation of one person corporations, thus, removing the minimum number of incorporators. This approval makes the legislative chamber on track for the scheduled implementation of the measure next year on January 2019.
Furthermore, this Revised Corporation Code also consolidates the six different legislative proposals that seeks to encourage the creation of new business, contribute to the ease of doing business in the country, and minimize or deter corporate abuses and fraud while it strengthens anti-corruption measures.
House Committee on Good Government and Public Accountability Chairman Xavier Jesus Romualdo said that the third reading approval is assured even as the House leadership targets the bill’s signing into law by December.
“Our targets then are to have the conference committee report approved by both chambers in November, have the bill signed into law by the President in December, and for the Revised Corporation Code to take effect by January, 2019″ Romualdo said.
“With our current Corporation Code which was enacted in 1980, the need to change on how the world does business, communicates, and undertakes commercial transactions over the last 38 years has now been addressed and we are following the international standard.” he explained. “We have to
adopt the international best practices and standards in corporate law and this will certainly allow corporations in the Philippines to respond to and meet the needs and realities of the present times,” he added.
Meanwhile Iloilo Congressman Ferjenel Biron, Chairman of the House Committee on Trade and Industry said that the bill removes the requirement of subscribed and paid-up capital stock for the purposes of incorporation.
The Committee Chair on Good Government and Public Accountability added, “The bill also authorizes the electronic submission of articles of incorporation or its amendments. Therefore, remote communication for attendance in meetings, voting in absentia during meetings and issuance by the Securities and Exchange Commission of certificates of incorporation in the form of an electronic document are also provided in the measure.”
“With this kind of process of updating and modernizing our main body of corporate law, the Revised Corporation Code will encourage entrepreneurship and the creation of new businesses, contribute to ease of doing business, strengthen corporate governance, better protect the rights of stockholders, deter corporate abuse and fraud, and bolster anti-corruption measures and the regulatory authority of the Securities and Exchange Commission (SEC),” Romualdo said in closing.
The Senate version was approved way back August 2018.