House bill filed making e-mail as valid notice in biz meetings

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Photo credit: Photo credit:[/caption] Under House Bill 4602, authored by Isabela representative Giorgidi Aggabao, electronic mail or e-mail shall be considered a written notice under the measure provided that it shall constitute a valid mode of notice of meetings to stockholders, members, board of directors and trustees of the corporation. The bill seeks to amend Section 50 and 53 of Batas Pambansa Bilang 68, otherwise known as the “Corporation Code of the Philippines,” enacted more than three decades ago. “This is in keeping with the modern-day business transactions, given the rapid change and fast-paced evolution of electronic and digital technology where at the click of a button, anything and everything can be accomplished,” Aggabao said. Aggabao said the amendments will also be consistent with the relevant provisions of Republic Act No. 8792 or the Electronic Commerce Act of 2002 which expressly recognizes an electronic document as having the same legal effect, validity and enforceability as a written document or legal writing. According to the House leader, e-mails as defined under Republic Act No. 8792, are considered as modes of a written expression transmitted electronically. Aggabao pointed out that while the Securities and Exchange Commission (SEC) has recently issued an opinion recognizing the validity of e-mail as a mode of sending notices of meetings, it is important to amend the relevant provisions of the Corporation Code to settle this matter once and for all, leaving no doubt as to its interpretation and application. ]]>

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