Eradicate Dummy Incorporators – Sen. Bam

Dummy incorporators will be a thing of the past if the measure filed by Senator Bam Aquino is enacted into law.

Aquino’s Senate Bill No. 2465 seeks to introduce key amendments to Batasang Pambansa Blg. 68 or the Corporation Code, which was passed in 1980 or more than three decades ago.

The senator said one of the measure’s key amendments is the introduction of a one-man corporation, which will eliminate the use of dummy incorporators in registering with the Security and Exchange Commission (SEC).

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, chairman of the Senate Committee on Trade, Commerce and Entrepreneurship.

Aquino also expects the bill to strengthen ease of doing business to encourage entrepreneurs to expand and become a corporation, thus resulting in more jobs and livelihood to more Filipinos and making the country’s growth inclusive for everyone.

“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,” he added.

Aside from the one-man 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 long-term plans and look into more sustainable and far-reaching strategies for more economic growth.

The measure also contains other related provisions to make the law relevant and attuned to present times, adopt the global practices, attract more investments and start-ups in the country, and specifically address the needs of entrepreneurs.

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