Corporate Law

Senate ratifies revised Corporation Code

Date: 28 November 2018; Type: Legal News; Source: Philippine News Agency

MANILA, Nov 28 (PNA) - Voting 17-0, the Senate on Wednesday ratified the reconciled version of the proposed measure that seeks to amend the Corporation Code of the Philippines to provide for a more business-friendly environment and boost the competitiveness of the country's economy.

Senate Minority Leader Franklin Drilon, the main author of the Senate version of the bill, said the final version of the measure is a product of the bipartisan cooperation between the majority and minority blocs of the Senate, and the cooperation between the two Chambers of Congress united by the common purpose of creating an environment conducive to business and entrepreneurship.

The measure amends Batas Pambansa 68, or the Corporation Code of the Philippines, that was passed on May 1, 1980.

“For the past 38 years, such an important piece of law has not gone any major revision, and it is probably because of that, that our business practices and our regulatory framework lagged behind many of the more advanced countries,” Drilon said.

In the latest Ease of Doing Business Report of the World Bank (WB) released earlier this month, the Philippines fell to 124th out of 190 economies. Previously, the country was at 113th.

In the areas of starting a business, the Philippines was ranked 166th, and was at 184th place on the "getting credit" indicator of the World Bank report.

“I believe that the enactment of this landmark legislation in this 17th Congress is not only timely but also necessary, considering the fact that we are lagging behind our neighbors in terms of ease of doing business,” Drilon said.

“This measure will vastly improve the regulatory environment for setting up a business in our country,” he added.

He further said the measure has four main reform clusters: the policies that would enhance the ease of doing business in the country, rules that would prioritize corporate stockholders’ protection, provisions that would instill corporate and civic responsibility and amendments that would strengthen the country’s policy and regulatory corporate framework.

Drilon said the new corporation code will improve the ease of doing business in the country by allowing a one-person corporation, removing the minimum capital requirement, and providing for perpetual existence of corporation.

“Allowing a one-person corporation would stop the practice of using dummies to comply with the stringent requirement of the present law,” he noted.

“The bicam report also endorses measures to strengthen corporate governance standards and provide protection to minority stockholders, particularly mandating corporations vested with public interests to have independent directors,” he added.

The Senate minority leader said the new Code provides a standard guide to the Securities and Exchange Commission (SEC) in determining which corporations are vested with the public interest

Drilon, who was celebrating his 73rd birthday, said that he would not ask for any gift from his colleagues, “but would consider the adoption of the bicameral conference committee report as a gift that we owe to our country and to the Filipino people.”

"With the enactment of this landmark legislation, I am confident that our country would be able to catch up with its neighboring countries," he said.

Notice: The Publishers of Asean LIP acknowledge the permission granted by the relevant official/ original source for the reproduction of the above/ attached materials. You shall not reproduce the above/ attached materials in whole or in part without the prior written consent of the Publishers and/or the original/ official source. Neither the Publishers nor the official/ original source will be liable for any loss, injury, claim, liability, or damage caused directly, indirectly or incidentally to errors in or omissions from the above/ attached materials. The Publishers and the official/ original source also disclaim and exclude all liabilities in respect of anything done or omitted to be done in reliance upon the whole or any part of the above/attached materials. The access to, and the use of, Asean LIP and contents herein are subject to the Terms of Use.

Get ASEAN LAW ALERT

Legal updates by e-mail. It's Free.

INDUSTRY UPDATES

House Panel to probe 'Budget Anomalies' in January

MANILA, Dec 13 (PNA) - The House of Representatives rules committee will start its investigation on the alleged “budget anomalies and questionable allocations” by the Department of Budget and Management (DBM) on January 3, Majority Leader Rolando Andaya Jr. announced on Thursday.

Read More

INDUSTRY UPDATES

ASEAN launches Safe Migration Campaign

Jakarta, Dec 12 (ANTARA News) - The Association of Southeast Asian Nations (ASEAN) has launched a safe migration campaign to increase public awareness of the advantages of employing migrant workers.

Read More

INDUSTRY UPDATES

Nation celebrates Universal Declaration of Human Rights

Government agencies and diplomatic and international organisation representatives gathered in Vientiane to mark the 70th anniversary of the Universal Declaration of Human Rights and its lasting impact, which was supported by the United Nations, European Union and Australia.

Read More

INDUSTRY UPDATES

SC welcomes Malaysia's Improved Ranking in Corporate Governance

KUALA LUMPUR, Dec 13 (Bernama) - The Securities Commission Malaysia (SC) is encouraged by the recognition of Malaysia's initiatives to improve corporate governance, which was a result of the collective effort by various stakeholders.

Read More

INDUSTRY UPDATES

MyCC to identify Anti-Competitive Elements in Eggs Market

KUALA LUMPUR, Dec 13 (Bernama) - The Malaysia Competition Commission (MyCC) is working closely with the Ministry of Domestic Trade and Consumer Affairs (MDTCA) to identify any anti-competitive elements that may occur in the domestic market for chicken eggs.

Read More

INDUSTRY UPDATES

MITI, MIDA, Intel hold IoT Forum to review Progress

KUALA LUMPUR, Dec 12 (Bernama) - The Ministry of International Trade and Industry (MITI), Malaysian Investment Development Authority (MIDA) and Intel Malaysia conducted the Internet of Things (IoT) Malaysia Forum 2018 yesterday to review IoT’s progress since its introduction five years ago.

Read More

INDUSTRY UPDATES

Unions request Government to set Workers’ Minimum Wage

Unions have asked the government to set the minimum wage for the construction and service sectors and to solve the five other major problems facing them, a statement released on International Human Rights Day on Monday said.

Read More

INDUSTRY UPDATES

Dewan Rakyat adjourns, Reform Agenda implemented - Speaker

KUALA LUMPUR, Dec 11 (Bernama) - The reform agenda of the Parliament was implemented at the second meeting of the first term of the 14th Parliament which came to a close today after sitting for 30 days since Oct 15.

Read More

INDUSTRY UPDATES

Court proposes Mediation in Theresa Kok's Suit against Jamal

KUALA LUMPUR, Dec 11 (Bernama) - The High Court today proposed that Primary Industries Minister Teresa Kok who filed a libel suit against Datuk Seri Jamal Md Yunos over alleged misuse of Yayasan Warisan Anak Selangor (Yawas) funds, resolve the case via mediation.

Read More

INDUSTRY UPDATES

Vietnam, Laos boost Judicial Cooperation

Hanoi, Dec 10 (VNA) - Vietnamese Minister of Justice Le Thanh Long and his Lao counterpart Xaysi Santivong agreed to work closely together to launch a bilateral cooperation programme for 2019, during their talks in Hanoi on December 10.

Read More

INDUSTRY UPDATES

Nation marks Constitution Day

BANGKOK, 10th December 2018 (NNT) - Today marks National Constitution Day, observing the importance of the administrative document and celebrating its 20 incarnations throughout the democratic history of Thailand.

Read More

INDUSTRY UPDATES

Court has Final Say on Trillanes' Travel Abroad: DOJ

MANILA, Dec 10 (PNA) - Justice Secretary Menardo Guevarra on Monday said the Bureau of Immigration (BI) will not prevent Senator Antonio Trillanes IV from traveling abroad if no travel ban is handed down by the courts against him.

Read More

INDUSTRY UPDATES

Government concerned about Readiness of SMEs to adopt Industry 4.0

KUALA LUMPUR, Dec 10 (Bernama) - The Government is concerned about the readiness of local industries, particularly Small and Medium Enterprises (SMEs), to adopt Industry 4.0.

Read More

INDUSTRY UPDATES

Memorandum of Understanding between Bank Negara Malaysia and Dubai Financial Services Authority

On 28 November 2018, Bank Negara Malaysia (BNM) and Dubai Financial Services Authority (DFSA) had signed a Memorandum of Understanding (MoU) on supervisory cooperation for effective supervision of banking and insurance/ takaful/ reinsurance institutions operating in both countries.

Read More

INDUSTRY UPDATES

DFA holds first ever Gender and Development Assembly

MAKATI, Dec 6- As part of the Department of Foreign Affairs’ (DFA) programs to continually mainstreaming gender and development (GAD) policies in its programs and activities, it hosted the agency’s first ever Gender and Development (GAD) Assembly at the Makati Diamond Residences on 06 to 08 November 2018.

Read More