President Rodrigo Duterte on Wednesday signed into law the amended Corporation Code to strengthen and simplify corporate governance standards for a more business-friendly environment.
Duterte signed the Revised Corporation Code during a ceremony in Malacañang.
The law aims to improve ease of doing business in the country by allowing a one-person corporation, removing the minimum capital requirement and providing for perpetual existence of a corporation.
The new code also introduces provisions to remove the minimum number of incorporators, permit the electronic filing of reportorial requirements and attendance in meetings via remote communication or in absentia, among others—practices that were not recognized in the old law (Batas Pambansa Bilang 68).
It will also strengthen corporate governance standards and provide protection to minority stockholders by requiring, among others, corporations vested with public interest to have independent directors.
Senator Franklin Drilon, a proponent of the measure, earlier said it was too difficult to open a business in the country under the old law due to numerous and stringent incorporation and regulatory requirements.
In the latest Ease of Doing Business Report of the World Bank last November, the Philippine ranking fell to 124th out of 190 economies from 113th previously. —VDS, GMA News