By Iris
Gonzales (The Philippine Star) | Updated July 13, 2015 - 12:00am
MANILA, Philippines
- The Securities and Exchange Commission (SEC), the corporate regulator, is
pursuing a bill seeking to amend the Corporation Code of the Philippines.
The pending
measures seek to promote investments and make the provisions aligned with
international standards.
SEC
chairperson Teresita Herbosa said the corporate regulator is currently
collecting comments from stakeholders on the proposed amendments and expects
the Senate Committee on Trade, Commerce and Entrepreneurship to complete its
report on the bill before the end of the year.
“Senator Bam
Aquino plans to finish maybe the committee report by the end of the year,” said
Herbosa.
She said the
lawmaker has been very helpful and understands the amendments needed.
Authored by
Senator Juan Edgardo “Sonny” Angara, Senate Bill 2194 seeks to shift corporate
life to perpetuity from the current maximum life of 50 years.
“To encourage new businesses, the amendments include
shifting to perpetuity, removing the minimum number of incorporators and
allowing the formation of one person corporations. Thus, corporations, in
general, will have perpetual existence enabling a more long-term mindset that
will foster sustainability; small businesses may reap the advantages of the
corporate vehicle with as few as two incorporators, and single proprietors may
protect their personal properties by setting up one person corporations,” the
bill said.
As part of
the proposed amendments, existing corporations with terms of 50 years may apply
for an extension three years before their franchise expires.
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