Senate Minority Leader Franklin M. Drilon on Thursday lauded the signing into law of the Revised Corporation Code of the Philippines, a measure which he principally authored and sponsored.
Drilon defended and pushed for the passage of the measure which codifies international best practices “in order to make the Philippines an attractive investment destination that is conducive to business and entrepreneurship.”
The new law, according to Drilon, will strengthen corporate governance standards with the end view of improving the ease of doing business in the country.
Its enactment, he added, is very timely given the country’s dismal ranking in the World Bank’s Ease of Doing Business Report 2019, where it slipped to 124ththis year from 113thpreviously out of 190 countries. The said study conducted by the World Bank measures how easy or difficult it is for an entrepreneur to open and run a small to medium-sized business while complying with relevant regulations.
“The passage into law of this measure is critical in our bid to improve the country’s business climate and make our economy more competitive with the rest of the world,” Drilon stressed.
The new law, he explained, amends the 38-year-old Corporation Code of the Philippines and contains provisions that remove the minimum number of incorporators, allow the registration of a one-person corporation, remove the requirement for minimum capitalization, permit the electronic filing of reportorial requirements and allow attendance in meetings via remote communication or in absentia, provide protection to minority stockholders, among others.
The amended Corporation Code would help simplify the process of incorporation to make the present corporate code attuned with the changing business landscape.
With the amendment permiting the establishment of a one-person corporation, Drilon said it will be a lot easier for local business owners and investors to register their business with the Securities and Exchange Commission.
Drilon said the new law would also simplify the name verification process, and grant a perpetual life as the default option for corporations.
Drilon added that the latest law provides key reforms in four areas of corporate governance, namely: improving the ease of business in the country, prioritizing corporate and stockholder protection, instilling corporate and civic responsibility, and strengthening the country’s policy and regulatory corporate framework. (BagongSenado)