Thursday, July 18, 2024

Corporation Code revisions to allow remote meetings, e-filing of requirements

Sen. Franklin M. Drilon has sponsored Senate Bill No. 1280 seeking to amend the 36-year-old Corporation Code, with the objective of making the Philippines conducive to doing business under a system of good corporate governance.

Sen. Franklin Drilon
Sen. Franklin Drilon

Among the key amendments in the proposed law amending the Corporation Code of the Philippines are: provisions that allow electronic filing of reportorial requirements and attendance in meetings via remote communication or in absentia, remove the minimum number of incorporators, and permit the establishment of a one-man corporation,

The changes are geared towards making the Code adaptable to the changing business landscape and making the Philippines an attractive investment destination.

“We must likewise provide an environment conducive not just to big businesses, but make the corporate vehicle an appealing prospect for startups and entrepreneurs,” Drilon said.

To contribute to the ease of doing business, Drilon said the proposed revised corporation code would introduce the concept of the one-person corporation, simplify the name verification process, and grant a perpetual life as the default option for corporations.

He pointed to a provision requiring corporations to have least five incorporators as “a common stumbling block” for many investors.

“Investors name individuals as incorporators, with no real interest in the corporation, just to comply with the legal requirement,” Drilon stressed.

“It is common knowledge that sometimes people get their drivers, their maids, their cooks, just to form five. One thing that we will change is that we will allow a one-person corporation so a single person can put up a corporation,” he said.


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