In a statement on Monday, Camiguin Rep. Xavier Jesus Romualdo, principal author of House Bill No. 8374, said the proposed Revised Corporation Code adopts international best practices and standards in corporate law and will allow corporations in the country to respond to and meet the “needs and realities of the present times.”
“Our current Corporation Code was enacted in 1980. Obviously, much has changed in how the world does business, communicates, and undertakes commercial transactions over the last 38 years,” Romualdo said.
He said the bill aims to encourage the creation of new businesses, contribute to the ease of doing business, strengthen corporate governance, better protect the rights of stockholders, deter corporate abuses and fraud, strengthen anti-corruption measures, and fortify the regulatory authority of the Securities and Exchange Commission (SEC).
The Senate version has already been approved on third and final reading in August.
Romualdo said he expects the bill to be approved on final reading by November at the Lower Chamber, and have it signed into law by President Rodrigo Duterte in December.
The bill also seeks to expand the right of stockholders to inspect corporate books, permits stockholders and directors to remotely participate in meetings and vote, and strengthens the SEC through additional powers to enforce the code and investigate and penalize violations.