Philippine Daily Inquirer
3:01 AM | Tuesday, December 2nd, 2014
A lawmaker has filed a bill seeking to curb the use of dummy incorporators in registering with the Securities and Exchange Commission (SEC) and ensure greater transparency in business dealings.
In a statement issued Monday, Sen. Paolo Benigno “Bam” Aquino IV said Senate Bill No. 2465 would seek to introduce key amendments to Batas Pambansa Blg. 68 or the Corporation Code that was passed in 1980, or more than three decades ago.
These amendments are expected to make the law more relevant and attuned to the present times, enable firms to adopt global practices, attract more investments and start-ups in the country, and more importantly, address the needs of entrepreneurs.
One of these provisions, according to Aquino, was the introduction of a one-person corporation, which is expected to eliminate the use of dummy incorporators. At present, a sole proprietor needs incorporators of five to fifteen individuals to be able to register with the SEC.
“If approved, this measure will encourage businessmen to do away with dummy incorporators and declare truthful and transparent information about their businesses,” said Aquino, who chairs the Senate committee on trade, commerce and entrepreneurship.
Aquino added that he expected his proposed bill to ease doing business in the country as well as encourage more entrepreneurs to expand their operations and become a corporation, which would thus generate the much needed jobs and livelihood.
Aside from the one-person corporation, the bill also aims to lessen the lifespan of perpetual corporations from the current 50 years to 25 years, giving them a chance to develop plans and look into more sustainable and far-reaching strategies for more economic growth.
“Entrepreneurs must be given all the assistance they need as they serve as the country’s economic backbone, accounting for 99 percent of enterprises and providing 66 percent of jobs in the country,” Aquino added.