Senate Bill No. 2945 under Committee Report No. 247

An Act Amending Section 144 of Batas Pambansa Blg. 68 otherwise known as the Corporation Code of the Philippines

Senator Paolo Benigno “Bam” A. Aquino IV
16^th Congress, Senate of the Philippines
Sponsorship Speech, September 9, 2015

 

 

Good afternoon, Mr. President and my distinguished colleagues.  Mga kaibigan, mga kababayan, magandang hapon sa ating lahat!

I am honored to address you today in support of improving and developing the country’s business regulatory practices for the benefit of our local entrepreneurs, as I sponsor Senate Bill No. 2945, under Committee Report No. 247, entitled An Act Amending Section 144 of Batas Pambansa Blg. 68 otherwise known as the Corporation Code of the Philippines.

As the spotlight continues to shine on the country thanks to our robust economic growth, we are challenged to push policies that make investing and doing business in the Philippines easier, more efficient, and more fun.

Kagalang-galang na Pangulo, naipasa na natin ang Go Negosyo Act na siyang pagmumulan ng tulong at tukod para sa maliliit na negosyong Pilipino sa kanilang paglalakbay tungo sa pag-unlad.

Naipasa na rin po natin ang Philippine Competition Act na magbibigay ng pagkakataon sa mga bagong negosyante na makilahok at makipagsabayan sa mas malalaki at mas matatatag na kompanya sa merkado.

Ngayon, may panibagong pagkakataon na suportahan at padaliin ang paglaganap ng mga negosyo sa ating bansa.

Mr. President and esteemed colleagues, the next step in promoting entrepreneurship and supporting the growth of our local businesses is to rethink and reform the Corporation Code of the Philippines, which was enacted in 1980.

For 35 years, we have gathered lessons and insights in order to improve and streamline the country’s Corporation Code for the benefit of both businesses and government agencies.

To strengthen our efforts to catch up to global best practices for the business sector and improve the ease of doing business in the country, we must now make improvements and amendments to the decades-old Corporation Code of the Philippines.

These amendments include the creation of a one-person corporation, allowing for perpetual corporate existence, and stringent measures to ensure corporations are not used for graft and corruption practices – changes that benefit both implementing government agencies and entrepreneurs alike.

 

One-Person Corporation

At present, the law requires a minimum of five persons in order to incorporate, while entrepreneurs that choose to build a business on their own are left with one option – a sole proprietorship.

However, in a sole proprietorship, personal assets are considered property of the business entity allowing authorities to seize personal assets should the business go asunder.

In an attempt to protect their personal assets, individuals have learned to engage “dummy incorporators”, rendering the policy ineffectual; and thus, encouraging businesses to circumvent the law.

Sa panukalang ito, bibigyan natin ang mga negosyanteng Pilipino ng pagkakataong makapagpatayo ng mga one-person corporation bilang alternatibo sa sole proprietorship.

We aim to give the government less cause for speculation and no need for investigation while encouraging more individuals to invest in their business ideas.

 

Perpetual Corporate Existence

Mr. President, as we encourage a mindset of entrepreneurship among Filipinos, we also want to encourage them to think long-term, be in it for the long haul and embrace enterprise development as a life and career choice.

But currently, our Corporation Code limits a corporate term to a maximum of only fifty years.

To remedy this, the Amendments to the Corporation Code will allow corporate perpetuity in the Philippines, encouraging corporations to develop long-term plans and generate extensive and sustainable strategies to achieve economic or, more importantly, socio-economic growth.

On the other hand, government agencies need not attend to regular renewals of corporations, eliminating unnecessary workload and taking one less opportunity away from fixers.

This is one of our efforts to promote ease of doing business with government and to truly be a partner in the growth of our business sector.

 

Good Corporate Governance

Mr. President and respected colleagues, the passage of this bill is also an important step towards realizing our country’s commitment to the United Nations Convention Against Corruption (UNCAC). 

It will promote good corporate governance by including stricter measures to safeguard companies from being used in aid of fraud, graft, and corruption.

These measures include imposing criminal liability against corporations, more stringent requirements for directorship, and whistleblower protection.

Ang pag-amyenda ng Corporation Code ay magpapatibay ng laban kontra katiwalian, hindi lamang sa gobyerno pero pati na rin sa mga nagnenegosyo.

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These are only few of the many improvements in this policy that seek to update and redesign the current Corporation Code of the Philippines to suit our ever-changing and growing local and global business world.

With so many opportunities for business and commerce in our country, there is no better time to build a successful business in the Philippines; and there is no better time than now to streamline our policies.

Mga kaibigan, sa repormang tinutulak natin ngayon, binibigyan natin ng pagkakataon ang mga negosyanteng Pilipinong magtagumpay at makamit ang kanilang mga pangarap.

Sa repormang ito, mas magiging matapat at epektibo ang ating pamahalaan upang ituloy ang pag-unlad ng bansa para sa bawa’t Pilipino! 

Inaasahan po namin ang inyong suporta sa pagpasa ng Amendments to the Corporation Code!

Magandang hapon at maraming maraming salamat!