The soon-to-be amended Corporation Code is expected to benefit overseas Filipino workers entrepreneurs, according to Rep. Juliette Uy (Misamis Oriental 2nd District), vice chair of the House Committee on Small Business & Entrepreneurship Development.
“Pabor ito sa OFWs dahil maaari na silang magtayo ng maliit na one person corporation sa probinsiya at palaguin ito ng kanilang pamilya dito sa Pilipinas habang naghahanap-buhay siya sa abroad. Ma-e-engganyo na ang mga OFW na maging entrepreneur dahil mas pinadali na ang pagtatayo ng kumpanya,” Uy added.
The reconciled ratified bill, which gives corporations perpetual life by default upon incorporation, is expected to get to President Rodrigo Duterte for his signature in the days ahead and could be signed before yearend. The bill amends Batas Pambansa Bilang 68 approved way back in May 1980.
“Tagumpay ang batas na ito para sa mga maliliit na negosyante dahil maaari na silang bumuo ng small corporations nang walang minimum capital liban sa mga isinasaad na minimum sa iilang batas. Dahil ito sa ‘one person corporation’ concept na dati ay mga opisyal lamang ng simbahan ang pinapayagan ng lumang batas,” Uy explained.
The solon also pointed out that the Corporation Code changes includes allowing voting and sending of notices of stockholders’ meetings using remote communication for which the Securities and Exchange Commission will promulgate the necessary rules “to make sure fair standards and safeguards are put in place to protect the interest of all parties.”
“With the ratification of the bicam-reconciled bill, we are now just a few weeks away from the effectivity of the historic changes to the four-decade-old Corporation Code. Much of the credit for the hard work in the House belongs to Camiguin Rep. Xavier Jesus D. Romualdo, principal author and sponsor of the measure, and to the authors of the bills that went into the House version,” Uy said.
She said that as her particular concern involves the regulatory powers of the Securities and Exchange Commission and how the 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.
“Mas dadami ang negosyo, mas dadami ang trabaho, mas dadami ang kliyente ng mga bangko, mas uunlad ang ekonomiya sa iba’t ibang dako ng Pilipinas, kasama na ang Misamis Oriental second district, kung saan mas nakakarami ang mga maliliit na negosyo,” said Uy, one of the authors of the measure.
“New provisions on independent directors, records-keeping, records access, contents of minutes of board meetings, and SEC power to remove directors are all meant to ensure fairness and transparency in how corporations are run,” Uy also said.