PH more biz-friendly with Revised Corporation Code

President Rodrigo Roa Duterte leads the ceremonial signing of the Revised Corporation Code and the Universal Health Care Act at the Malacañan Palace on February 20, 2019. ROLANDO MAILO/PRESIDENTIAL PHOTO

MANILA — The newly-signed Revised Corporation Code of the Philippines will help simplify corporate governance, provide a more business-friendly environment and boost the competitiveness of the country’s economy, President Rodrigo R. Duterte said.

“I also sign today the Revised Corporation Code which seeks to simplify corporate governance standards and establish a more business-friendly environment that will enable corporations and other juridical entities to thrive,” Duterte said in his speech at the ceremonial signing of the Revised Corporation Code and other landmark legislations in Malacañang on Wednesday.

One of the salient provisions of the new law is the removal of the minimum limit on the number of shareholders required to register a corporation from five to allowing one person to register a business as a corporation.

Other provisions include allowing stockholders to vote remotely on meetings and giving the Securities and Exchange Commission power to remove directors and update the provisions on records-keeping and records access based on current technologies.

The new law also provides protection to minority stockholders by requiring corporations vested with the public interest to have independent directors.

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