THE HOUSE COMMITTEE on Good Government and Public Accountability said it hopes the Revised Corporation Code of the Philippines comes into force by January 2019 after hurdling the bicameral conference committee next month, in time for the President’s signature in December.
House Bill 8374, which will allow single-person corporations and perpetual company life, recently hurdled second reading in the chamber. Its counterpart measure, Senate Bill 1280, was approved on third reading in August.
Committee chair Xavier Jesus D. Romualdo of Camiguin said he expects the House Bill to be approved on third reading when session resumes on Nov. 12.
“Our targets then are to have the (bicameral) conference committee report approved by both chambers in November, have the bill signed into law by the President in December, and for the Revised Corporation Code to take effect by January 2019,” Mr. Romualdo said in a statement on Monday.
The bill will modernize the 38-year-old Batas Pambansa 68 or the Corporation Code of the Philippines by removing the five- to 15-person requirement for incorporators and removing the 50-year limit on corporate life.
“By updating and modernizing our main body of corporate law, the Revised Corporation Code will encourage entrepreneurship and the creation of new businesses,” Mr. Romualdo said.
The new code will also remove requirements for subscribed and paid-up capital stock for incorporation. The current code provided that “At least 25% of the authorized capital stock as stated in the articles of incorporation must be subscribed at the time of incorporation and at least 25% of the total subscription must be paid upon subscription.”
Further, the measure will also allow electronic transmittal of documents, such as the articles of incorporation, as well as certificates of incorporation issued by the Securities and Exchange Commission.
The bill also grants more powers to the Securities and Exchange Commission (SEC), including stiffer penalties ranging from P1,000 to P5 million. The SEC’s current powers include imposing fines of P1,000 to P10,000 and prison terms of 30 days to five years. — Charmaine A. Tadalan