February 26, 2019

Duterte Approves Revised Corporation Code

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  • President Rodrigo Duterte enacted Republic Act No. (R.A.) 11232 last February 20, which revised Batas Pambansa 68 or the Corporation Code of the Philippines.

    IMAGE Philippine Communications Operations Office

    Also read: Duterte Signs 105-Day Expanded Maternity Leave Law

    Duterte said that the amendment of the 38-year-old corporate code is a step to make the Philippines more business-friendly and to boost the competitiveness of the market.

    In the revised code, a sole person is now allowed to form a corporation, as opposed to the previous provision that requires a minimum of five people.

    A separate section, which lists the provisions on one person corporations, can also be found in the new code.

    Also read: Duterte Ratifies Work From Home Bill into A New Law

    Corporations, both existing and new, are now entitled to perpetual existence. The old code restricts the corporate term to a maximum of 50 years. At the same time, the provision requiring minimum capital stock was also removed.

    Further, stockholders are now allowed to participate and vote in meetings through remote communication such as phone calls and video conferencing. They are also allowed to vote in absentia.

    The newly amended corporation code takes into further consideration the advancements brought upon by modern technology by developing and implementing an electronic filing and monitoring system.

    Also read: Lawmaker urges companies on corporate profit sharing

    Documents required by the Security and Exchange Commission (SEC) such as corporate name reservation and registration, corporate books and records, and reports, among others are covered by the Intellectual Property Code of the Philippines (R.A. No. 8293), Data Privacy Act of 2012 (R.A. No. 10173), and The Securities Regulation Code (R.A.No.  8799).

    Sources: Official Gazette, Inquirer, and Philstar

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