The original author of the new Corporation Code of the Philippines on Friday hailed President Rodrigo Duterte’s enactment of the new law which he said would finally update archaic and outdated corporate laws and keep it abreast with the changing corporate environment.
Former Rep. Mel Senen Sarmiento of Samar and the original author of the measure which was refiled by his brother Edgar Mary Sarmiento said the Revised Corporation Code introduced several substantial innovations that seek to streamline the entry of new industries and corporations.
At the same time, this law would benefit already existing corporations as it already allows meetings of the board through electronic means, Sarmiento, former Interior and Local Government Secretary, said.
The new law also removes the minimum number of incorporators, allows one-man corporations and lifts the 50-year corporate term limit which was imposed in the old code.
“This 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,” Sarmiento said.
Another important point in the revised corporate law, Sarmiento said is the provision that allows the Securities and Exchange Commission to remove disqualified members of the Board of Directors or Trustees.
“This law would definitely allow business to thrive better as it simplifies the rules on corporate management. As the principal author and the first to file the house bill that amends the 38-year-old Corporation Code in the 16th Congress, I am glad that it has finally been signed into law by President Duterte,” Sarmiento said.
“Although the 16th Congress failed to approve it due to lack of material time, Cong. Edgar Sarmiento and the other principal authors such as Cong. Biron, Cong. Romualdo and the late Cong. Batocabe, took up the cudgels to shepherd it this 17th Congress,” he added.
