THE SENATE on Wednesday approved on second reading a bill amending Batasang Pambansa No. 68, or the Corporation Code of the Philippines, introducing the concept of a one-man corporation.
In a statement, Senate Minority Leader Franklin M. Drilon, author and sponsor of Senate Bill 1280, said the amendments allow business owners and investors to do away with the need to name as incorporators persons who are not relevant to corporate operations, such as members of the company founder’s household.
“In general, the proposed amendments promote efficiency and encourage transparency in corporate dealings — from formation to daily operations,” he said.
“Having them in place will allow the Philippines to compete with other countries as a viable investment destination and small business-friendly jurisdiction,” he added.
The Corporation Code of the Philippines governs the establishment and operation of stock and non-stock corporations.
Mr. Drilon said the bill seeks to ease the process of doing business, prioritize corporate and shareholder protection, instill corporate and civic responsibility, and strengthen the country’s policy and regulatory corporate framework.
The proposed measure will also streamline the process of incorporation to better suit the Corporation Code to the changing business landscape.
It also simplify the name verification process for company founders, and offer as the default option a perpetual legal life for the corporation.
He said the bill also addresses issues with the current law requiring corporations to have at least five incorporators, which is viewed as a “stumbling block” for many investors.
Its counterpart version in the House of Representatives remain pending at committee level. — Camille A. Aguinaldo
