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.