- August 9, 2018
- Posted by: Atty. James Biron
- Categories: Commercial, Corporation, Legal News
On Tuesday, August 7, the Senate passed on the third and final reading of the bill amending the 38-year-old Batas Pambansa Bilang 68 or the Corporation Code of the Philippines.
The Senate Bill No. 1280 announces the “one-person corporation” to tackle the problem of enlisting at least five stockholders as the present requirement for a corporation. It also gives perpetual term as the standard option for corporations.
The Corporation Code of the Philippines provides the rules and regulations for the setting up and operation of stock and non-stock companies in the country.
After 20 positive and zero negative votes with no abstains, the Bill was approved. The proposed measure was given and sponsored by Senate Minority Leader Franklin M. Drilon also co-sponsored by Senate Majority Leader Juan Miguel F. Zubiri.
Sen. Drilon said that the measure will give a better business environment for investors in the country. He also said it will provide an easy environment not just for big businesses, it will also make the corporate instrument a pleasing prospect for new businesses and entrepreneurs.
The “one-person corporation” amendment sought to be introduced by the bill will prevent the practice of some investors of making their household members and assistants as incorporators just to comply with the current rules.
The bill also adopts an electronic filing system for reportorial requirements and eases the current name verification system to allow easy name registration for corporations.
The measure will also allow the use of alternative modes of communication so that stockholders and directors can attend through distant communication and in certain cases, can cast votes “in absentia.”
Image source: Rex
