President Rodrigo Duterte led a ceremonial signing of all laws he had previously enacted in the past few weeks on Wednesday, including the Revised Corporation Code.
The Revised Corporation Code amends the 38-year old Corporation Code.
Its provisions include removing the minimum limit on the number of shareholders required to register a corporation from five. The amendment allows one person to register a business as a corporation by oneself.
“This new law will create more businesses nationwide because of the ‘one person corporation’ provisions and the removal of the minimum capitalization requirement for incorporation – with some exceptions,” said Leyte 2nd District Representative Henry Ong in a statement. Ong is chairman of the House committee on banks and financial intermediaries, and was principal author of the House bill.
In a statement issued last year, Senator Franklin Drilon, who was principal author of the Senate version of the Revised Corporation Code, said that the revisions would stop the current practice of businessmen registering a corporation under the names of family members.
“One of our difficulties today is our laws have not been updated. As a result, in terms of our ranking in the ease of doing business we are lagging behind,” Drilon said last November.
Other provisions of the law include allowing stockholders to use remote communication to vote on meetings, giving the Securities and Exchange Commission the power to remove directors, and to update the provisions on records-keeping and records access based on current technologies.