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A conference committee, CONGRESSIONNEL, on Tuesday approved Malacañang's final approval of the reconciled version of the Senate and the revised Companies Code, designed to "strengthen and simplify corporate governance standards in a more inclusive environment." favorable to businesses ".
Proponents of swift enactment of the enabling law should reverse the country's decline in the World Bank's latest report on the ease of doing business released earlier this month, where the Philippines has moved from 113th to 124th economy out of 190.
Among the approved reforms, the new code includes provisions removing the minimum number of founders, allowing the electronic filing of reporting requirements and attendance at meetings by remote communication or in absentia, practices that were not recognized. in the old law.
Senate Bill 1280 updates the decades-old Philippine Companies Code.
In a statement, the leader of the senatorial minority, Franklin M. Drilon, lead author of SB 1280, said the amended corporate code was intended to "strengthen corporate governance standards and protect corporate governance. minority shareholders "among others.
Once promulgated by President Duterte, corrective legislation is seen as allowing "business-friendly Philippines" to keep pace with their neighboring countries. "We are proud to lead the House in adopting this historic legislation that will remove the barriers preventing small and large businesses from entering the market," said Drilon. The leader of the Senate minority acknowledged that "one of our difficulties today is [that] our laws have not been updated. "
As a result, he added, "in terms of ease of doing business, we are lagging behind, especially when it comes to starting a business in which the country ranked 166th."
Drilon recalled that it was "too difficult" to open a business in the country under the old law, citing the "numerous and rigorous requirements for incorporation and regulation" . These, he lamented, discouraged Filipino investors and entrepreneurs from accessing the local market.
The senator said: "His immediate signature by the president is correct, so that we can change the business climate in the country and make our economy more competitive."
At the same time, he said he was confident that the new code of companies will improve the ease of doing business in the country by allowing a one-person company, by removing the minimum capital requirement and ensuring the sustainability of the society. "With the new code allowing a one-person corporation, local business owners and investors could already end the practice of designating all of their homes as founders simply to comply with the strict requirements of the law," he added. Drilon.
He pointed out that the current business environment makes it difficult to access loans for businesses and individual business owners, which means that the country only scores 5 [184th place] in the "get credit" indicator of the World Bank. The Philippine government, through the Ministries of Finance and Trade and Industry, has challenged the report on the World Bank's ease of doing business precisely because of this indicator because, according to them, investigators from the bank had omitted some vital information.
At the same time, Drilon assured the public that the new code would also allow a single-person company to access loans and grants, adding that "once promulgated, all existing and future companies are known to have a perpetual life ".
In addition, Drilon expects the updated Companies Code to "strengthen corporate governance standards and protect minority shareholders by requiring, among other things, companies with an interest in public to have independent directors.
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